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Do I Need Landlords’ Insurance?

Being a landlord can be an expensive business if you don’t have the correct insurance cover in place. What should be considered and what makes a good policy?

One of the questions we’re often asked by our landlords is “Do I need landlords' insurance?”

A thorough landlords’ policy can include a number of useful features, such as buildings insurance, accidental damage cover and financial protection against loss of rent.

Insurance isn’t compulsory but may be a requirement of the lender when taking out a buy-to-let mortgage.

Building’s insurance is the main type of cover that a landlord will need. This protects the bricks and mortar of the building and will cover the costs if the building were to be subject to flooding or fire. This insurance usually covers the building’s fixtures eg kitchen units and bathroom suites.  It may also cover garages and outbuildings.

Contents insurance is also needed if the property is furnished, whether it be partly or full, and will protect against theft and damage.  Extra cover could be considered for accidental damage if there are expensive items within the property.  Look for a policy that will replace items on a “new for old” basis so you will be refunded for the purchase price of buying new.

It is the tenant’s responsibility to ensure their personal possessions.

Liability insurance can be added as an extra to most policies, and is often a requirement if you offer student or social housing.  This will cover you if tenants try to sue you for an accident in your property. If your property becomes uninhabitable and therefore unrentable you can insure against loss of rental income.  

This is important if the property is mortgaged and you’re relying on the rental income to cover the mortgage payments.
You may also want to consider covering yourself for any legal costs following potential disputes with tenants, including evicting squatters and repossessing your property.

You may be able to extend your policy to cover the legal costs of recovering outstanding rent owed by your tenant.

Emergency cover will cover the cost of arranging emergency repairs. It ensures a fully qualified tradesmen will be on hand to sort out household emergencies, 24 hours a day, 365 days a year.

Often one insurer will offer several types of cover and put together a policy package to suit individual needs.



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