There are a number of reasons why you may decide to rent your home out, either on a short or long term basis. Depending on the scenario, the standard homeowners’ policy may not offer protection against all losses you might incur while the home is rented out, and you may need to buy a more specialized insurance policy.
If you fail to tell your insurer you have rented your home out, they might flatly refuse to pay any subsequent claims. Therefore, you should get specialist landlord insurance if you’re planning on renting your home. While some policies offer all these individual components as one package, some allow you to add on extras as you need them.
Landlord Building Insurance
This is vital because it protects the physical damages to the building. It protects the bricks and mortar that make up the property. In case of fire or a flood, buildings insurance will settle all the losses incurred, thereby giving you peace of mind. Most buildings insurance policies offer unlimited cover, so you will not need to worry about the rebuilding costs.
Landlord Contest Insurance
This is another vital form of cover, especially if your flat is furnished. It offers protection to beds, carpets, sofas and other possessions from either damage or theft. However, this policy does not go beyond what you own. It cannot protect tenants’ property unless they buy a policy themselves.
Landlord Liability Insurance
Personal injury claims have increased in recent years, thanks to the effort ambulance-chasing lawyers have directed towards persuading those who have suffered an accident or injury to make a claim for compensation. Some claims top £100,000, something that makes it necessary to protect yourself against litigious tenants. With landlord liability cover, you can often get up to £2 million of cover.
Loss of Rent Insurance
If the property is damaged due to an accident or destroyed and you cannot rent it out anymore, the loss of rent insurance comes in handy to replace the lost income. This is vital especially if you have taken out a mortgage and the repayment of the loan depends on the monthly payments made by tenants. Loss of insurance cover can spare you the agony of losing your property over unpaid bills.
Legal Expenses Cover
Dealing with tenants sometimes leads to disputes, which could go as far as evictions. In most cases, you need to seek defence against any criminal action tied to your relationship with tenants and people living near your property. Legal processes can cost a lot if the verdict is delayed. With legal expenses insurance, you can also recover any rent owed by tenants in case of a dispute.
Landlord Home Emergency Insurance
Arranging emergency repair and adjustments can prove costly. The landlord emergency cover helps to settle all the costs emanating from unforeseen costs like a gas leak, pest infestation or pipe bursts. The policy covers all call-out charges, materials and labours and ensures a well qualified tradesman is on hand to sort the emergencies out.
