Landlord insurance is an important consideration for people who are renting their property out, for a number of reasons. The main reasons to take out landlord insurance include:
- Covers the event of loss of rental income. This can be when a tenant vacates without warning or in non-compliance with the rental agreement, if a tenant simply stops paying rent, and if the tenant is evicted from your property for legal reasons.
- Coverage for legal costs that relate to any legal proceedings against tenants, including recovering costs for damage.
- To provide cover for theft and intentional damage that may be caused to your property by the tenant.
Some providers of Landlords Insurance not only cover landlords if they rent out their property personally, but also if it is rented through a letting agency. Not all company’s offer this however, so reading the fine print is vital before signing up for your policy.
It is important to read the policy details carefully to ensure you understand exactly what is covered and what may not be covered under a landlords insurance policy. Understanding the exclusions of a policy is also important. Some common exclusions relating to landlord insurance can include storm damage to some parts of the property, general wear and tear that has caused financial loss, and wet or dry rot damage to the building. The inclusions and exclusions differ between insurance policy, therefore selecting the right one for your circumstance by discussing your needs with your prospective insurer is of great benefit.
Another aspect to consider is the amount of excess payable on any policy in the event you need to make a claim. Reputable landlord insurance providers will clearly state what the excess amount is for a particular policy type. It is often possible to lower your excess amount by taking out additional insurance options.
The amount of your landlord insurance may differ from others who own similar properties depending upon the area that your property is located. Insurance providers must consider average crime figures, rental figures, and other statistics to calculate insurance premium amounts for any given area, usually based on post code.
Landlord insurance policies are not only for regular tenanted houses, but can also apply to holiday villas, bungalows and other properties which are leased out on a regular or occasional basis. Contents insurance is often included in the overall insurance premium, but it is always important to check whether this is the case, particularly if you are providing much of the furniture and other house contents for tenants.
Landlord insurance providers peace of mind that, in the event your tenants cause damage to your property or another unforeseen event occurs, you will have the financial assistance that you need to restore your property so that it can be tenanted again.