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Landlords Guide: How to insure your investment property

A landlord is responsible for the safety of the tenants, as well as the safety of the investment property. As a landlord, it is always a good idea to ensure your property before letting it out. While most landlords have a home insurance policy, it is highly recommended that they opt for a landlord insurance policy that is more specific for rentals and investment properties. Follow this landlord’s guide to ensure your investment property is properly.

What is landlord insurance?

First, let’s understand what landlord insurance really is.  Landlord insurance is a type of home insurance that specifically covers rental properties, keeping in mind the various risks and factors associated with letting out a property. Basically, landlords’ insurance covers various types of events that could occur when a property is given out, as opposed to when the owner lives in their own property.

What are the types of landlord insurance?

Basic landlord insurances

There are various types of landlord’s insurance. The most basic one is the landlord’s building insurance which covers any damages to the investment property. These damages could be from water damage, fire, smoke, leaks, and other such factors. Usually, vandalism is also covered in such a policy. Another policy that should be taken along with the building insurance is the landlord’s content insurance which covers the contents of the property, from appliances to carpets, from kitchen items to tables and sofas.

Premium/Add-on landlord insurances

Landlords can also opt for more premium insurances such as rental protection insurance. Basically, if the rental property is so damaged that it is not in a liveable condition, the insurance company pays out money to the landlord during that period in lieu of rent. In some cases, tenants can claim insurance if the tenant is unable to pay the rent on time for a month or more.

Public and legal landlord insurances

Another important insurance policy is public liability insurance. If a tenant gets injured on the property, he or she can file a claim against the landlord. In this case, the insurance can cover the landlord. Legal expense insurance covers any legal expenses that a tenant might have to pay to sort out any disputes or claims. If a landlord owns a building or has any employees working at your investment property, he or she should opt for employers’ liability insurance. If any employee claims to have hurt or injured themselves while working at your property, then you can use the employers’ liability insurance to help you.

What does the landlord insurance cover?

The landlord insurance cover depends on the type of landlord insurance. Basic landlord insurance will cover basic home insurance such as damage to the building due to a fire or any other calamity, damage to the structure of the building, damage to the contents of the building, and so on. Some landlord insurance covers public liability whereas others cover legal expenses. Of course, as the landlord’s insurance becomes more complex and widespread, the higher the premium. But, at the end of the day, it is always better to have a specific insurance policy as opposed to paying an arm and a leg for damages or legal expenses later.

Is it compulsory to have landlord insurance?

No, it is not compulsory to have landlord insurance. However, estate agents in Beckenham feel that it is better to have premium landlords insurance as that protects a landlord from any events that could take place in the future. However, it is very important for landlords to take basic insurance policies in order to protect their investment property as well as the contents of their property.

Which landlord’s insurance is best for me?

The type of insurance that you require as a landlord depends on the type of property that you own. If you have an unfurnished property, you will definitely require landlord’s building insurance. If you have a fully furnished property, you should opt for the landlord’s content insurance too. If you have multiple investment properties, you could consider portfolio insurance as opposed to separate insurance policies for every property. If you own a building with multiple flats, you must have employers’ liability insurance. If you depend solely on rental income, then you must have rental protection insurance. Basically, the type of insurance depends on the type of property, the number of properties, and the requirements of the landlord.

How do I get landlord insurance?

The best way to ensure your property is by speaking to the experts. They will be able to guide you as to which insurance is best for you and what all landlord insurance you should take to protect your rental investment and your own interests.

If you are looking to buy an investment property, get a free property valuation or find the best landlord’s insurance policy, get in touch with your local estate agents today.