What is landlord insurance in UK?

Are you a landlord in United Kingdom and wondering what exactly is the landlord’s insurance and the protection it offers for the landlords?

There are high chances that things can go wrong when you have tenants for your property. You should be looking at the right protection for your property so that you are covered.

There is a Landlord insurance which could help you get the right cover for your property.

What is landlord insurance?

Landlord’s insurance is a cover that protects the landlords from the risks associated with their property that is rented out. These includes building insurance, contents insurance, loss of rent, tenant default insurance etc.

Do you need a landlord insurance?

Well, this depends on individual landlords. It isn’t mandatory to have the landlord’s insurance but there are some lenders who make it mandatory especially when you are looking out for a buy-to-let mortgage.

What does Landlord insurance cover?

There are different types if landlord insurance which covers different types of risks. For example, the Buildings insurance covers most of the costs w.r.t the repairing or rebuilding the property that you own.

The contents insurance on the other hand covers the contents of your property if they are stolen or damaged during the tenancy.

If you are buying a landlord insurance, you can select the type of insurance that you need based on the risk factors.

What types of landlord insurance exists?

There are many types of landlord insurance options available to the landlords in United Kingdom that protects their let properties in UK and their income. Some of them includes

Landlord buildings insurance

Some mortgage provider and the lender make this compulsory. It may be checked with the lenders for the details. This is one of the important insurance cover that a landlord will need. This covers the rebuilding costs in case your property suffers a flood or fire. Before you buy this insurance, you need to ensure that you are aware of the actual rebuilding cost of your property.

Landlord contents insurance

This insurance covers the items that you provide in the property for the tenant as a part of the letting. These includes the white goods, carpets etc. This is useful especially if your property is full furnished or part-furnished.

This is useful especially if your property is full furnished or part-furnished. Note that you don’t have to insure your tenant belongings as it’s technically their responsibility to insure.

Portfolio insurance

There are times when the landlords own more properties and have let them for tenancy. This insurance is for those owners or landlords who have to maintain the portfolio of buildings for let.

Home emergency cover

This is an optional insurance cover or an add-on for the landlord building insurance. This helps the landlord cover the costs for any emergency repairs at your property.

Rent guarantee and legal expenses cover insurance

This is yet another optional insurance which could be bought seperately or as an add-on to the landlord’s insurance. The rent guarantee insurance offers some kind of protection especially for the landlord who has taken the mortgage and are relying purely on the rent to meet the monthly repayments.

The legal expenses insurance on the other hand helps you with the coverage for any legal costs because of the potential disputes with the tenants.

You would have noticed that there are plenty of insurances available in the market to protect the landlords. They are not that expensive either BUT it is important for one to choose the right insurance based on the coverage they need.

You would be renting your property for the person or family which you might not know (although you perform adequate checks), it is important for you to have the necessary cover for your property in case something goes wrong.

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