INSURANCE

If you’re considering renting out a property you own, you need to consider what insurance you will need.

Usually when you rent out your property, standard buildings and contents insurance is no longer enough. If you fail to tell your insurer that you have rented out your property, it may invalidate any future claim. You therefore need specialist landlords insurance.

As with all insurance it is essential to check what the policy covers and also what limitations are placed on it. Does it restrict you to a certain type of tenant? Does it cover you when the property is empty? Do you need to fit a certain type of door security? Is accidental damage by the tenants covered? Landlord insurance usually comes in several parts, so you need to work out whether you need all of them.

Landlord buildings insurance

This is essential, because it protects the bricks and mortar of your property. It will cover you in the event of any damage to the actual building. Many buildings policies offer unlimited cover, so you don’t need to estimate the rebuilding costs of your property.

Landlord buildings insurance

Although not essential contents insurance is something you will want to consider, particularly if you rent the flat furnished, because it protects your beds, carpets, sofas, TVs and other possessions from theft or damage. Look for a policy that will replace your belongings on a “new for old” basis. You don’t have to insure your tenants’ possessions, as that will normally be their responsibility.

Landlord liability insurance

You have a duty to ensure your property is safe and have a general duty of care towards your tenants. This insurance will provide cover in the event that a claim is made by your tenant for any loss or damage they may have suffered and for which you may be held liable.