If you’ve recently become a landlord, you may be wondering what insurance do landlords need?
Standard home insurance will not cover a property you rent out, so here’s a guide to what types of insurance landlords need.
Landlord insurance is an important part of protecting you, your tenant and your property. Even though it is not a legal obligation, many lenders may require you to have an insurance policy before you can acquire tenants. Depending on the risks you face as a landlord, it may be wise to have a wide range of policies to cover your property.
You can choose from a variety of different policies as a landlord. Here’s a look at just a few.
Landlord Home Emergency
Landlord Home Emergency Cover provides you with 24/7 assistance for you and your tenants in the event of an emergency. This covers burst pipes, boiler breakdown, roof leaks, pest infestations and so on. This insurance will remove the need for expensive late-night call outs, saving you money. It also removes the need for tenants to phone the landlord directly and can provide authorised tenant contact with the insurance provider.
Furthermore, this insurance for landlords can cover the costs of emergency accommodation if the home is left inhabitable. If you’re a landlord with more than one property, you will see the benefits of this insurance right away. Find out more about our Landlord Home Emergency Cover.
Landlord Buildings Insurance
In the event of excessive damage to your property, Landlord Buildings Insurance will help cover the costs to repair the structure of your property. This includes walls, floors, roof, fixtures and fittings. This insurance for landlords will be valid if the property is damaged by fire, storm weather, floods or vandalism.
This insurance for landlords is especially beneficial if your property is quite old and may be at risk of damage. If you’re in a flood zone or are at risk of fire damage, it is advisable to take out this cover for landlords.
Tenant Default Insurance
Unfortunate circumstances can lead to your tenants not paying their rent. This could be due to a variety of reasons, but the main concern is that you are now out of pocket. If your tenants do not pay their rent for up to two months, Tenant Default Insurance will help pay the lost rent. Typically, this insurance for landlords will cover up to 8 months of rent payments.
To use this cover you would need to perform credit checks and background checks on your tenants, you can use crbdirect.org.uk to do that. It is an important policy to have, especially if one rent payment will put you out of pocket.
Here at Best Price FS, we want to ensure all landlords are protected from the unforeseeable future. We hope this guide helps answer your question. If you’d like to get in touch about out Landlord Home Emergency Cover you can get in touch.