Insurance tips for let property

Posted by Lansdowne-Woodward on 5th November 2019 -

Whether you let a terraced house or a block of flats, your property is an investment that needs to be correctly insured. When renting your property to a third party, you need a specialist type of cover to that of a standard home insurance policy to protect both yourself and your property.

Rented properties need additional insurance

Although the building itself will be covered under standard home insurance policies, additional cover such as the following should be considered for owners of a rented property: 

• Loss of rent and alternative accommodation – should your property become uninhabitable following an insured loss, such as a fire or flood, your tenants cannot be expected to pay rent. This cover will ensure you don’t have to pay either. 

• Legal expenses – covers legal costs for various issues, including removal of squatters.

• Property owners' liability – enables you to meet any costs and damages awarded to a tenant or member of the public if they suffer an injury following an accident on, or linked to, your premises.

• Accidental damage – covers damage that occurs suddenly as a result of an unexpected and non-deliberate external action. 

• Theft and malicious damage by tenants – if your tenants intentionally cause damage to your property, this cover will reimburse you the cost of repair or replacement (usually excluded). 

Buildings insurance

It is important to remember that you are insuring the rebuild value of your property, not the purchase price. Buildings insurance covers the structure of the building and permanent ‘fixtures and fittings’ such as baths and fitted furniture. If you’re not sure what that encompasses, ask yourself – can it reasonably be removed and taken to another home?

If it can, then it is actually classed as ‘contents’ and it will not generally be covered by a buildings policy. You should be aware that most policies class carpets as contents, so it pays to use a broker who can advise you on such issues and will be invaluable when it comes to making claims.  

Different types of landlord insurance 

The type of tenant you rent to will have a significant effect on your insurance policy; commercial, professionals, students and DSS tenants all demand different types of cover and different insurers will offer cheaper policies for each. As professional insurance brokers, Lansdowne Woodward know which insurers are the most competitive for each type of property and tenant.

We approach a panel of A rated insurers to make sure you get the best deal and repeat the process at each renewal to ensure that you continue to get the best possible combination of cover and price. 

---

If you are interested in learning more about how we can help protect your property, please contact Liam at Lansdowne Woodward Insurance brokers on 01202 874 989 or email [email protected] today.