As a landlord, it is vital you properly safeguard every aspect of your portfolio. Should there ever be issues with collecting rent, damage to your contents, a home emergency, or an injury that you are liable for, you could be out of pocket financially and unable to afford the costs of your property.
There are policies tailored to the types of risks landlords face. Find out more below.
Landlord Liability
Should a tenant injure themselves on your property, as a result of something in your property, such as loose tiles or a carpet, then you could be held liable. If the injury leads to a lawsuit, a liability policy can protect you.
• Your legal costs in defending a claim
• Damages awarded to the claimant
• The claimant’s legal costs, if you are found to be at fault
Landlord liability is often a legal requirement if you are renting your properties as student accommodation of social housing. As a safeguard, it could be argued that it is an essential policy to have in place.
Are your properties furnished? You might want to consider a contents insurance policy.
It is standard practice for most landlords to let their properties on the condition that the tenant can prove they have a contents insurance policy ready to be put in place on the day of the move. However, if your properties are furnished or semi-furnished, you might want to think about getting your own policy.
Items such as beds and sofas, TV’s, kitchen appliances, and carpets can all be protected against damage or theft by tenants or third parties. The only thing you will need to clarify with your tenants is the policy protects your contents and does not extend to their personal items.
Do you own a buy-to-let mortgage?
Landlords that have invested in property solely to rent it out, will usually own a buy-to-let mortgage. Most providers will insist that you have loss of rent insurance to cover your rent should you not have a tenant for an extended amount of time, or if your current can’t (or won’t) pay the rent.
Loss of rent cover also protects you, should a fire or flood make your property uninhabitable. Your tenant will no longer be required to pay you rent, which could put your mortgage in jeopardy.
What about the inevitable home emergency?
Every landlord lives in fear of the dreaded phone call, reporting a burst pipe or a broken boiler. To add insult to injury, the cost of an emergency call out can be quite high. A home emergency insurance policy can assist in covering the costs of emergency repairs and call-outs.
The policy can also assist with the costs of maintenance work like boiler services, which can help to prevent any serious breakdowns.