Whether you’re a landlord with a portfolio of properties to be rented or simply a single property, 1 common element shared by both is that rented properties are an investment that must to be safeguarded. However, according to the Association of Residential Letting Agents, landlords frequently neglect a vital protection, that of satisfactory insurance coverage. Standard household insurance doesn’t cover a premises occupied by tenants, so  to have adequate protection landlords insurance is important.

Landlords insurance, known also as let property insurance, covers many aspects and you can take out a policy that best meets your special requirements. Bear in mind when determining what specific coverage you require your insurance to consist of – for instance buildings coverage or buildings & contents, rent protection, legal expenses protection – it is vital not to leave yourself underinsured seeing that you don’t want  to be in a position where you have to pay a great deal of money out of pocket for an investment that’s intended to make you money, not cost you. Furthermore be mindful that the level of coverage you’re able to obtain and how much the insurance policy costs you will be set by the insurer depending on factors for instance the type of occupant renting your property, with high risk tenants such as students or DSS looked upon less favourably than professional tenants.

Buildings coverage is almost surely the very least insurance protection you have on your own property, and it is just as imperative to have for a let property. This will protect the building itself against physical harm as the outcome of a fire, burst pipe or other unintentional calamity, saving you from having to bear the entire cost of repair and rebuilding work that needs to be carried out. Numerous insurance providers will additionally offer the choice of coverage against malicious damage done by tenants, and additionally a further option that will compensate for a set percentage of rent loss while the property is unoccupiable.

Even if you are letting an unfurnished property, it will still consist of contents that are your responsibility so it can be worthy including contents coverage in the policy you take out. Not only will limited contents coverage compensate you up to a pre-determined amount for loss or damage to fixtures that belong to you, such as kitchen appliances, curtains and carpets, many policies can also include liability coverage in case a tenant claims injury from a defective fixture considered to be the landlord’s duty to maintain, for example a fall caused by a loose carpet or burns caused by a faulty cooking stove. For furnished properties, when the cost of replacing damaged contents will be more costly than simply replacing built-in fixtures, full contents coverage can be obtained.

A further important aspect of landlords insurance is rent protection. Chances are you have money tied up in your let property, a mortgage payment to meet, for which you depend upon receiving steady monthly payments from your tenant. Regrettably, in the housing rental market the dependability of tenants is not a sure thing, whether through sheer irresponsibility on the tenants’ part or a honest inability to pay, for instance if the tenant has suffered a recent job loss and is struggling to meet the payments. Rent guarantee insurance will ensure you still have money coming in for a pre-determined time period, so if you can’t afford to miss that monthly income should your tenant stop paying, having rent protection will give you tremendous peace of mind.

As landlords risk incurring steep legal fees, it is prudent to include legal expenses insurance in your policy. If you’re forced to pay solicitor fees to deal with tenants who don’t pay their rent or who make a claim against you, or court fees for an eviction hearing, the costs will soar rapidly so it is absolutely in a landlord’s best interests to be covered for such situations.

A further helpful provision of landlords insurance is emergency assistance, which will provide compensation in the event service people are called out to the property, for example if there is an electricity, gas or plumbing problem that is not the result of a lack of maintenance. Most policies will cover costs for parts and labour, thereby sparing you the expense and trouble of fixing the problem yourself.

Remember, tenants do not own the house they are living in, and as such you can’t rely on them to treat your household with the same care and regard that you would if you were living in it. It is down to you to defend yourself and your property against the inherent risks that come with being a landlord, and one critical way to do so is to avoid cutting corners when it comes to getting suitable insurance coverage.