Landlord Property Insurance: A Break Down of Policy Elements

If you own and let property then it is essential that you insure it. Insurance is one of those funny items that we must buy, yet never want to use and as such, you naturally want to get a great deal whenever it is bought. But how can you make sure that you don’t pay too much but still get effective cover?

The first tip is to make sure that your mortgage provider is informed before you start letting the property. Typically the small print in your contract will state that if you do start renting the property, there is a legal obligation to tell them, it may even require you to remortgage.

Your landlord property insurance should also cover the two elements of your property, buildings and contents. Buildings insurance is normally insisted upon by the mortgage broker as they have a joint interest in the property being protected against risks such as fire, floods or any other types of accident.

Buildings insurance can be seen as the most important element of your insurance policy as it covers the physical building. The value that it protects to however is not the same as its market value and will simple cover the costs to rebuild it if it becomes damaged. As a landlord you need to ensure that your buildings insurance is complete enough so that you are covered against a wide variety of different risks.

The other element of your landlord property insurance is contents cover. This is particularly pertinent if you rent a fully furnished property although equally, it should not be neglected if you let unfurnished. This will essentially cover the soft furnishings and any other possessions you may have on the property against the risks outlined in the policy.

As a landlord you will also want to consider the various liability insurance options open to you. Essentially if someone is injured on or near your property as a result of your negligence it is likely you will be liable. Public liability insurance provides you with cover for the legal expenses associated with a liability claim, whilst employer’s liability insurance covers you from the same situation, but with someone who is working on your property.

These three elements form the basis of all good landlords insurance policies and should be considered the essential elements of your cover. By taking your time to understand each it should be possible to have effective and affordable insurance for your rental properties.