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Landlord Insurance: What does it cover?

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Landlord insurance should be considered if you’re renting out properties or your own home. With high house prices and stringent lending conditions making it increasing difficult to get a mortgage or increase your mortgage, many are finding it easier to just rent a property or even rent out their property to save money. Some might think about renting their own house out while they rent another as one way of moving home without having to sell up. But renting out your house isn’t as easy as just advertising and then collecting the monthly rent; as a Landlord you have additional responsibilities and should have the appropriate cover for both your own protection and that of then tenants living in your property.

Advise your existing company

Even though you might have building and contents cover for your home, once you have rented it out you must tell your insurance company and change your cover to specialist landlords insurance or else should you need to make a claim, they might flatly refuse to pay out. Tenants might not always care for your home in the same manner you would so accidents such as red wine on a cream carpet, an overflowing bath which causes the ceiling below to collapse, a cigarette that starts a fire or even leaving a door unlocked for burglars to help themselves, are all things that you should consider might happen and make provisions for.

Get the right level of cover

Your home or whether you own several houses and rent them out, are the single most expensive purchases we make and so we should take out the appropriate level of cover, not just the cheapest option. Landlord insurance is available in several different parts so check out the policies and whether you need them all. Landlord building insurance is the most important, as this covers the property itself and will pay for any costs involved in rebuilding the property if it is damaged by fire or floods.

landlord insurance

If you rent the house out as furnished, then ensure you have landlord contents insurance. This will protect all furniture including carpets, curtains, beds and TVs so if they are stolen or damaged, you won’t be paying out of your own pocket for replacements. Look for a policy that provides a ‘new for old’ option but if your tenant has furnished your home with their own belongings, it is up to them to provide their own cover. Home emergency insurance which covers emergency repairs for gas leaks, break ins or pest control might also be worth considering. Most policies will cover call out charges, labour and materials and can save you thousands if you were to have a boiler breakdown!

Expect the unexpected

We appear to be living in a compensation culture society now and there has been a vast increase in the amount of personal injury claims against landlords. This is made worse by companies bombarding people with texts, emails and adverts offering to take on cases on a no win no fee basis. As a result, landlord liability insurance is something to be seriously considered. With claims ranging from a few thousand up to £100,000 for instances such as wobbly banisters causing injury, liability insurance can cover you for claims up to £2million as standard.

If for any reason you can’t rent your house out, for example it is damaged by fire, then loss of rent insurance can add peace of mind, especially if you have a mortgage on the property and therefore the added stress of making the repayments on that. It can cover legal costs from tenant disputes to squatter eviction and some policies may also cover costs involved in claiming outstanding rent from tenants.

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About Rebecca Robinson

About Rebecca Robinson

After spending the last 8 years juggling life as a mum of two, wife and working full time as a Project Manager for a global telecommunications company, Rebecca Robinson made the decision to follow her love of writing and took the plunge; turning her passion into a full time career. Since becoming a full time writer, Rebecca has worked with various media and copy-writing companies and with the ability to make any topic relevant and interesting to the reader, now contributes to The Working Parent on articles ranging from credit cards to teenage relationships. Ever the optimist, Rebecca's dreams for the future include a house in the country filled with children, dogs and horses in the field!

Website: Rebecca Robinson

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