April 15, 2024 12:58 pm

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Nikka Sulton

New landlords may overlook the need for specialized landlord insurance to cover their rental properties, often required by mortgage providers. Fortunately, there are numerous insurance options to safeguard both the properties and income of landlords.


Is landlord insurance compulsory?

Is landlord insurance necessary? If you have a mortgage on your rental property, your lender will likely mandate a buildings insurance policy. Depending on your chosen landlord insurance type, buildings cover is typically included. Opting for comprehensive landlord insurance may offer peace of mind considering potential rental issues.

Long-term, it could prevent significant payouts for accidental damage or unpaid rent. Explore our landlord insurance guide to understand available policies and their relevance to your situation before determining your coverage level.


Landlord buildings insurance

Buildings insurance provides coverage for various risks, encompassing full repair or replacement costs post an insured event, along with site clearance expenses in case of complete destruction.

For landlords, buildings insurance typically safeguards against:

  • Fire or smoke damage
  • Flooding incidents
  • Theft, vandalism, or malicious acts
  • Oil or water leakage
  • Lightning, storms (excluding gates and fences), or earthquakes
  • Subsidence, heave, or landslip
  • Burst pipes
  • Impact from vehicles, falling trees, animals, aircraft, aerials, and masts
  • Civil commotion (usually excluding properties in Northern Ireland)
  • Property owners’ liability

When obtaining a quote, it’s crucial to determine the property’s rebuild value. Learn how to calculate this for buildings insurance coverage.


Do I need landlord insurance and buildings insurance?

Landlord insurance encompasses various insurance options available to landlords, such as buildings and contents insurance for rental properties. If unsure about coverage, consult your insurance provider.

Having buildings insurance is typically mandated by your bank or mortgage provider if you have a mortgage on your rental property. They may also request to be listed as an ‘interested party’ on your policy—verify this with your mortgage or loan provider.

For landlords renting to pet owners, considering insurance coverage that includes protection against pet damage may be advisable.


Landlord contents insurance

With most insurers, you can typically supplement your landlord buildings insurance with contents cover to safeguard your belongings from risks like fire, theft, and flood. Endsleigh offers savings of up to 20% when you opt for combined landlord buildings and contents insurance.

Contents cover encompasses items like furniture, household utensils, kitchen appliances, curtains, and carpets. Additionally, you have the option to extend the coverage to include accidental damage.


Do I need contents insurance as a landlord?

Contents cover is an additional option, meaning you’ll only need to secure landlord contents cover for the possessions you own. This may include furniture or appliances provided for your tenants’ use in the property.

Furnishing your property is just one decision among many that landlords confront when renting out properties for the first time. Ultimately, it involves weighing upfront expenses against the possibility of increased monthly rental income. Explore further guidance on deciding whether or not to furnish your rental property.


Does landlord insurance cover tenants contents?

Even with landlord insurance that encompasses contents, it doesn’t extend to your tenants’ belongings. They’re responsible for insuring their possessions. However, if their items cause damage to your property, having the appropriate policy is crucial to address such situations.


Property Portfolio insurance

Property portfolio insurance is tailored for landlords with five or more properties, offering a streamlined approach to covering buildings (and optionally contents) across all their let properties. This consolidation means one policy, one premium, and one renewal date, simplifying administrative tasks. Moreover, as more properties are included, discounts typically apply, enhancing cost-effectiveness. Additionally, blocks of flats can be insured under these policies.


Rent guarantee insurance

Even if your tenants pass rent affordability checks, they may face difficulties paying rent later on. It’s prudent to prepare for such situations, especially if rental income covers your mortgage. Rent guarantee and legal expenses insurance offer protection in case tenants default. This insurance covers lost rent and legal fees for repossession or eviction. 

Insurers often provide interim rental payments during recovery, though typically with a one-month rental excess. Review your policy booklet or consult your insurer for coverage details.


Home emergency cover

You can enhance your landlord buildings and contents policy with home emergency cover, safeguarding your property and tenants against essential service failures. This coverage typically operates 24/7 for emergencies.


Legal expenses cover

You have the option to include legal expenses cover in your landlord buildings and contents policy, offering legal protection. In some cases, this may be part of the standard coverage, so reviewing your policy terms is advisable.


What type of landlord insurance do I need?

If your rental property has a mortgage, your bank may mandate buildings insurance, so consulting your mortgage provider is crucial. Beyond that, selecting landlord insurance is your prerogative, considering various scenarios.

For instance, what if tenants fail to pay rent? Can you still meet mortgage obligations? Familiarity with eviction procedures is vital. Rent guarantee and legal expenses insurance could be prudent options.

Moreover, proximity to your property matters. Prompt response to emergencies is essential. Home emergency cover could mitigate potential disruptions, like boiler malfunctions or plumbing issues, benefiting both you and your tenants.





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