When landlords come into our Warrington branch, we often hear the question, ‘do I need landlord insurance?’
And the answer is always…YES!
It’s always advised but it’s often compulsory with a buy-to-let mortgage, so you have to be aware of what’s required before you start to develop your property portfolio.
Today we’ll explore what landlord insurance is and why you need it for a successful let.
What is landlord insurance?
Landlord insurance is a policy that covers property owners against any financial losses. You have the option to just cover the building itself, or add on any contents that belong to you as well.
Depending on the type you choose, you can also cover yourself for unpaid rent, damage to the property made by tenants and even emergency assistance cover.
Are there different types of landlord insurance?
The types of landlord insurance you’ll have access to are dependent on the company you go to.
But the main types are:
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Building Insurance
This is the most popular choice amongst landlords, due to what it covers you for. The policy will cover the cost of rebuilding your property (in the event of a natural disaster), loss of rent and any claims made against you.
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Landlord Liability Insurance
Landlord liability insurance covers you in the event of someone being injured or killed while on your property. It will also protect you if someone chooses to sue you following the accident.
Many landlords choose to invest in this type of insurance if letting properties in areas with high crime rates.
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Contents Insurance
If the property you’re renting out is partly or fully furnished, investing in contents insurance is advised. Any furniture or electrical items can be replaced if stolen or damaged during the tenancy agreement.
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Rent Guarantee
A tenant’s lifestyle has more of an impact on their rental agreement than you may first think. Changes in jobs, a new addition and even a break-up will affect their ability to meet payments, but with rent guarantee insurance, you will still receive the agreed monthly payment.
What happens if I don’t invest in landlord insurance?
While some mortgage providers have landlord insurance as a requirement, others don’t, meaning it’s completely up to you as to whether you choose to invest or not.
However, to protect you and any properties you’d like to buy in the future, it’s advised you consider landlord insurance.
When it comes to renting out flats and houses, there is (sadly) always a possibility that something will go wrong before, during and after a tenancy.
Investing in landlord insurance protects you against everything from accidental damage to injuries.
If you don’t choose to pay for landlord insurance, any costs will have to come out of your back pocket. If you have a collection of properties in your portfolio, this will be an expensive option and you could end up making a loss.
How do I get landlord insurance?
Any good insurance provider can provide you with suitable landlord cover, but before you invest, it’s vital you do your research.
Understanding the available options limits confusion when met with insurance jargon, as well as giving you the confidence to ask questions.
The team here at EasyLet Residential know all the ins and outs of the rental property world. If you need some assistance on which landlord insurance will suit you and your needs the best, give us a call today on 01925 633011 or email your questions to info@easyletresidential.co.uk for a speedy response.
Speak to the team at EasyLet Residential today
Although our primary focus is supplying letting agents to landlords, our knowledgeable team are more than happy to give you advice on all things property.
Just come into our office in Warrington for a brew and a chat.
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Simply get in touch today for more information.
