If you are renting out your property, it is a good idea to have landlord insurance. It provides you with a cover for most of the same things as standard home insurance. But what makes it different is that it covers the risks that come with the rental business. No matter if you rent out a single house or multiple flats, it got you covered. There are different types of covers offered by various insurance providers. Typically an insurance policy includes building insurance, content insurance, rent guarantee insurance and liability coverage. This insurance only provides cover to landlords belonging and not to tenants. Tenants need to purchase tenant insurance UK in order to protect their belongings.
Why Do You Need Landlord Insurance?
The primary purpose of landlord insurance is to cover the homeowner from liability claims and protect their income if the property becomes uninhabitable. Your property is a significant investment and one of your biggest assets, landlord insurance, helps you protect your investment. In addition, renting a property is considered a business, and by having insurance in place, you can save your income in case of any loss. Moreover, your mortgage provider may insist you have landlord insurance. So it is essential to choose the right cover for you.
Is it A Legal Requirement To Have Landlord Insurance?
Although it is not a mandatory requirement by law to have landlord insurance in the UK, it gives you financial protection and peace of mind. Your tenants may also ask to see landlord insurance proof before signing the lease agreement. Landlord insurance coverage typically includes:
- Cover for building, fixture, fittings and contents if any damage is caused due to theft, fire, flood, storm or vandalism.
- Cover for your contents if any damage is caused by your tenants.
- If tenants or their guests get injured, and you are held responsible, landlord insurance will help you in paying legal expenses and compensation costs.
- If your property becomes uninhabitable or tenants fail to pay rent, your insurance policy will compensate for your monthly rental income for a specific period of time.
Therefore, by investing some amount in purchasing landlord insurance UK, you can protect yourself from any significant financial loss in the furniture.
Different types of landlords require different insurance depending on the type of property and their insurance requirements. For example, if you are renting out only a room in your home, you do not need to purchase a separate policy and can extend your standard homeowner’s policy.
If you are a professional landlord and renting out multiple properties, you need specialised insurance to protect your asset and business. With the growing awareness of landlord insurance, the demand has increased, and a number of insurance companies are now present in the UK. Every insurance provider has its own level of coverage and insurance premium. That is why we suggest you shop around and make price comparisons before making a final decision. It will help you in finding a cover as per your requirements without putting pressure on your pocket.
