Think of Landlord's Insurance as Supercharged Home Insurance, Cover for When You're Trusting Tenants with One of Your Prized Possessions AND Trusting One of Your Prized Possessions with Your Tenants...
Your rental property is likely to be one of your biggest investments and without the right protection, it could cost you dearly if anything was to go wrong. At TVG Lettings, we have extensive experience working with Landlords, understanding exactly what issues they have faced when renting out a property, both for residential or commercial use.
We actively encourage our Landlords to consider taking out an insurance policy that is specific to Landlords. After all, being a Landlord comes with a great level of responsibility, you are essentially putting your trust in the hands of your Tenants, who you may be unfamiliar with. Issues such as structural damage and injury to Tenants whilst occupying your property could result in serious financial loss if not properly protected.
It is so important to ensure that you and your property are financially covered if anything was to go wrong. With over 170 years in the property industry, we have built up a reputation for first-class professionalism and so, we are able to offer our clients the best care and protection from like-minded businesses.
Our Mortgage & Insurance partner, Right Click Finance, work with over 80 Lenders, allowing them to find the best cover for your circumstances. As you will find from our answers below to the FAQs of Landlords Insurance, there is no "one size fits all" solution to your insurance needs as a Landlord. By setting up a no-obligation mortgage appointment with Right Click, they will be able to truly understand your circumstances and advise on the best insurance products to suit your particular circumstances.
It may not be a legal requirement or a compulsory condition of your Buy-to-Let Mortgage but Landlord's Insurance offers a level of cover that general Home Insurance does not.
Rather unsurprisingly, Landlord's Insurance is made specifically to provide protection for the most common issues that Landlords face and therefore, it may be a more sound decision to opt for that insurance. Also, some Lenders may refuse to pay out if your policy doesn't cover rental properties.
What Does Landlord's Insurance Cover?
Like any type of insurance policy, the particular cover of a policy completely depends on the Lender and what one Lender is willing to cover, another may not. However, there are a few things that are common in this type of policy:
Buildings Cover - If your property is damaged in the event of a fire or flood, etc... then this type of policy will cover the cost of repairing the damage. Some policies also include covering loss of rent.
Contents Cover - Whether your property is part-furnished or fully-furnished, those items belong to you and if damage occurs, the money will be coming out of your pocket. Unless you have Contents Cover on your Insurance!
Liability - If a Tenant or a Guest injures themselves in your property, then you could face a legal claim and even have to pay for compensation as a result. It's one of the most important parts of Landlord's Insurance which regular Home Insurance simply doesn't stack up against.
The Most Common Optional Extras on Landlords Insurance
Whether the boiler breaks or a pipe bursts, this type of cover ensures it's sorted as soon as possible. Less stress for you and for the Tenant!
Loss of Rental Income
If your property experienced major damaged, would you be able to cope with the loss of rental income? If not, it's worthwhile adding this onto your cover.
Employer's Liability Cover
If you employ someone who works inside your rental property, then you can put your Employers Liability Insurance within your Landlord's Insurance.
How Much Does Landlord Insurance Cost?
Again, this depends on your specific circumstances and what you want to be covered. There is an important aspect to consider, which is the rebuild value of your property. This means the cost of what it takes to rebuild your whole property in the event of serious damage including the cost of architects and builders needed in the process. This value is usually determined by the Surveyor organised by your Mortgage Lender.
It is vitally important to get the right amount of cover as you could be in serious financial difficulty if you are underinsured. If you claim against your insurance and are underinsured, you will find that your insurance company refuse to pay the full amount of the claim.
If your property damage was worth £100,000 but you were only covered for £50,000, how would you fund that extra cash?
TVG Property Management t/a TVG Lettings introduces to Home Legal Services Liverpool LLP t/a Right Click Finance for the provision of mortgage and non-investment insurance advice. Home Legal Services Liverpool LLP t/a Right Click Finance is an appointed representative of Primis Mortgage Network. Primis Mortgage Network is a trading name of First Complete Ltd which is authorised and regulated by the Financial Conduct Authority. The Financial Conduct Authority does not regulate some forms of Buy to Let Mortgage.
The guidance and/or advice contained within this web page is subject to the UK regulatory regime and is therefore primarily targeted at consumers based in the UK.