A Guide to Insurance for Landlords
As a Landlord, your rental premises represent not only one of your most important and valuable assets, but a crucial source of income. Like most valuable assets, rental properties need to be protected properly with a well written insurance policy. Consider the following a guide to help you navigate the key concerns around Landlord insurance policies:
Landlord Insurance – What Does It Cover?
Perhaps the most confusing aspect of a Landlord insurance policy is what exactly it covers. Most commonly, Landlord insurance protects the physical premises from damage or loss – this usually includes permanent and attached structures, such as a garage, your Liability as the Landlord and your rent (income from the property).
Brokers should provide a more personalised service than online options, wherein you collaborate with your insurance broker to determine exactly how comprehensive of a policy you require.
Do You Need Contents Insurance?
Although most properties are furnished by the tenants you still need to cover carpets and curtains which are considered contents on most Landlord policies. You should have enough cover to replace or repair these items.
Damage Caused by Tenants
In some cases, tenants may, intentionally or otherwise, damage the property or Landlord’s contents. Some inferior quality policies exclude damage by tenants, make sure your policy has this cover.
Loss of Rent
If an insured event (e.g. fire) prevented the property from being rented out does your policy cover Loss of Rent? Again, some inferior policies don’t have this cover. Also, check if the policy requires a lease between the Landlord and tenant that shows amount of rent being paid.
Type of Occupancy
Make sure your policy has the correct occupancy listed. There is a difference between long-term tenants and short-term tenants (e.g. AirBNB or holiday rentals). Having the incorrect occupancy listed could lead to a claim being denied.
If you have questions about any of the above matters or wish to work with an experienced broker to find a suitable Landlord insurance policy, get in contact with the team at Provide Insurance.