Landlord insurance is similar to your normal home insurance but is designed to cover rental properties. Your standard home insurance will not be adequate for covering buy to let properties also.
An example of this is that your standard home insurance will only cover a vacant property for one month whereas landlords insurance will usually offer three months of cover if the property is vacant between tenancies.
• Landlord buildings insurance: this cover is for structural damage to the property for example from a natural disaster, fire or major maintenance issue. The cover will pay for repairs and even rebuilding of the property in extreme circumstances.
• Landlord contents insurance: this cover is for any furnishings in the property including the carpets. It will not cover the tenants personal possessions and they will need to take out a policy to insure these themselves.
• Landlord liability insurance: this cover is in case the tenant or visitors to the property injure themselves and you are held responsible. This is often included in your buildings and contents policy but it is worth checking the small print.
Additional insurance for Landlords
Below are three additional insurances worth considering:
• Rent guarantee insurance: this cover protects against tenants not paying their rent however it is important they are referenced properly as any issues with the reference checks could invalidate your claim.
• Legal expenses insurance: this will cover the cost of a legal dispute with your tenant.
• Home emergency cover: if your property has a maintenance issue with the gas, electricity, heating, water or drainage this can cover the cost of repair and help to get it fixed faster.
Make sure you get the right policy
Always read the small print and check that you are covered for all eventualities. It is also worth noting that some of the above insurances may include multiple covers. For example it is common to get rent guarantee and legal expenses insurance combined.