Are you thinking of letting out your property? If you are, you may well have questions about insurance and what specifics you need cover for.
That will largely depend on whether you are renting out a private home or a business location because commercial landlord insurance will account for different risks. There are also different regulations to follow when letting out commercial and private properties.
Fortunately, we’ve put together a handy guide to explain what landlord insurance covers and how you’re protected.
Defence against injury
Should an injury happen on your property, you could be held liable by the victim. This is usually the case if you were aware of the danger that caused it, such as a broken floorboard, handrail or faulty electrics. If steps weren’t taken to repair or mitigate the risk, there’s a greater chance of being accused of negligence.
Landlord insurance can help you cover the costs associated with providing compensation to the victim or disputing a claim.
Cover from disasters
If a serious accident such as a fire or flood happens, you’ll want to know you’re properly covered. Having the correct insurance can help you cover the costs associated with repairs, loss of rental income or temporary accommodation costs should it be needed.
Sometimes buildings insurance will cover flood damage but it’s worth checking to make sure you have an adequate policy in place, especially if the property is in a high-risk flooding area.
Contents insurance
Landlord contents insurance will only cover your items, not those of the tenant. If your property is furnished, you’ll need contents insurance in place so you don’t have to pay for any replacements or repairs out of your own pocket.
The tenant must have their own contents insurance policy to cover their belongings when renting a home ? they will be unable to rely on yours to protect their items.
Accidental damage
Landlord insurance can cover the cost of any accidental damage to your property. This can be things such as a spillage on a sofa, a DIY project gone wrong or dropping an item that creates a hole in a floorboard or wall.
Other factors to consider
There are usually extras you can add to a policy, such as boiler breakdown cover or rent protection in case your tenant falls into arrears.
