Landlords are well recommended to purchase landlord insurance to ensure that their property is covered should any unexpected circumstance occur.
Landlord insurance includes buildings insurance. The sum insured must be the equivalent of the rebuild value of the rental property, meaning your property is covered for insured events. For more information on this, please see our Buildings section of Home Insurance.
In addition to this, landlord insurance usually provides cover specifically designed to protect landlords financially, and includes both loss of rent protection and third party liability cover. Loss of rent protection will pay out following the occurrence of an insured event (e.g. fire, flood) which leads to the impossibility of obtaining rental income. Third Party liability cover provides protection if a tenant is injured as a result of poor maintenance of the property.
The level of contents insurance needed for your property depends on whether it is furnished or not. Unfurnished property only requires limited cover, offering protection on white goods, curtains, carpets and light fixtures. Fully comprehensive contents cover is recommended if your property is furnished.
Although, increasing the cost of your premiums, optional add-ons can be very beneficial. Such add-ons include:
- Emergency Assistance – If emergency repair is required, all you need to do is phone the emergency helpline and the insurance provider will arrange a suitable contractor and pay for labour and materials up to a fixed amount
- Rent Guarantee Cover – If a tenant fails to pay rent, the insurer will pay the rent for a set period. This is particularly useful if there you are still paying the mortgage on the property
- Legal Expenses cover – If a tenant is in breach of the contract, this cover will provide you with the appropriate legal support to get him/her evicted.
*All information displayed in this table is subject to change. Please consult individual insurers for terms and conditions.
