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LANDLORDS INSURANCE: From damage to damages, you need to be covered
Whether you own a single flat that you’re renting out or you have a whole portfolio of houses and apartments, the simple fact is that if you’re earning income from property, standard homeowners insurance won’t cover you. You need landlords insurance.
What should it include?
For a start, just like your own home, you’ll need buildings cover to protect your rental properties against risks such as fire, flood and subsidence. After all, if such a disaster were to occur, not only might the repair bills turn out to be more than you could afford, you would also be without rental income while the repairs were being done. So speed is of the essence. With the right buildings cover in your landlord insurance, you’ll be in a position to get things moving straight away.
Unless you rent properties in a completely unfurnished state, you’ll also want contents insurance. Just think how many items it takes to furnish and equip a rental property. If things get damaged or go missing, for whatever reason, you’ll need to replace them immediately if you want the rent to continue coming in. With the right insurance for landlords, you’ll find it a lot easier to do so.
Some scenarios are even worse. Imagine a tenant has an accident in the property and blames it on a poorly-fitted stair carpet, say, or a badly-sited bathroom fitting. Since, as a landlord, you have a legal responsibility to provide a safe living environment, you might well find yourself being sued for damages. Without the public liability cover included in a comprehensive landlords insurance package, you could be faced with having to pay a substantial compensation award - as well as hefty legal bills - out of your own pocket. Are you sure you could afford that?
With even the best tenants, disagreements can arise. And if a disagreement escalates to the point where a tenant refuses to pay the rent, what are you going to do? Even if you take the tenant to court, there will still be a protracted period during which you’re not receiving an income. Inconvenient at the very best. But if you’re still having to maintain mortgage payments on the property, it could put you out of business as a landlord altogether. A highly compelling reason for ensuring that your landlord insurance also includes protection against Loss of Rent.
Make sure you’re fully covered. Just click to find insurance for landlords. |
