4 Things To Know About Landlord Insurance

Are you thinking about investing in landlord insurance? While it may not be a legal requirement, you’re leaving yourself open to a huge amount of risk without it.

Here are the most important things you should know about landlord insurance, including what it is and what type of insurance you should get.

What Is Landlord Insurance?

Landlord insurance provides you with protection against the risks associated with renting to tenants.

Usually, landlord insurance includes protection against things like damages to the building or contents.

But there are other optional policies you can take out, like cover for boiler breakages or missed rent payments.

What Type of Landlord Insurance Should You Get?

There are many different types of landlord insurance available. Each one will cover you for different circumstances. The main types of cover available include:

• Building – Covers the repair of structural damage, plus fixtures and fittings, in the event of a fire, storm, flood or other accident.

• Contents – Covers damage or theft of furnishings, including things like curtains, carpets, and white goods. This doesn’t include items the tenant owns, as they should have their own tenant’s insurance.

• Liability – Covers the costs if you or your tenant is injured on your property.

• Rent guarantee – Recovers any missed rent payments by the tenant and any legal fees should you take a tenant to court.

• Home emergency – Protects in the event of an emergency, like a boiler, plumbing, security, or pest issue.

• Key care – Covers the cost of providing new locks or keys to tenants.

If you’re not sure which type of cover you need, speak to Fortis and we'll be happy to advise you, or check with your lender.

4 Things To Know About Landlord Insurance

1. It’s Different To Home Insurance

Landlord insurance is very different to regular home insurance. If you have home insurance for a property, but you’re renting the space to a tenant, your policy will automatically be void. If you’re not living in the property, basic home insurance won’t provide you with the cover you need as a landlord.

2. Some Lenders Mandate It

It’s not a legal requirement to have landlord insurance. But most mortgage lenders will make it mandatory before entering into an agreement with you. If you don’t comply, you could be breaking the terms of your mortgage.

3. It’s Tax-Deductible

Just like most landlord expenses, you can usually claim back on the costs of your landlord insurance. Make sure you keep records of payment and notify your accountant (if you have one) about the costs.

4. Bulk Discounts Apply

If you rent more than one property, you could get a discount on your landlord insurance. Many providers will offer you a discount if you choose to arrange your insurance for all buildings on a bulk policy.

Rent With Confidence

At Red Key , we can help you rent with the confidence and security you need.

For more advice on landlord insurance and property management services, get in touch with us today on 02920 090690 / 0333 3447850 or via email at hello@redkeylets.co.uk

Frequently Asked Questions About Landlord Insurance

Do I need landlord insurance if I have home insurance?

Standard home insurance doesn't cover rental properties. You need a specific landlord insurance policy to protect your investment.

What does landlord insurance cover?

Landlord insurance typically covers building damage, loss of rent, public liability, and legal expenses. Some policies also include optional cover for contents, boiler breakdowns, and key replacement.

How much does landlord insurance cost?

The cost of landlord insurance depends on various factors, including the property's value, location, number of tenants, and the level of cover you choose. It's essential to compare quotes from different insurers to find the best deal.

Is landlord insurance a legal requirement?

While not legally required, most mortgage lenders will insist on landlord insurance before approving a mortgage for a rental property. It's strongly recommended to protect your investment.