01/04/2021
Do I need Landlord Insurance?
If you’re renting out a property and have questions about Landlord Insurance, Associate Director Rob Mills can help. In this article, he answers your FAQs about who needs Landlord Insurance and why.
Do I need Landlord Insurance?
Although it’s not a legal requirement, you may need Buildings Insurance as part of your agreement with a buy-to-let mortgage provider.
Plus, it provides vital protection against risks that your Home Insurance typically excludes, such as Landlord Liability.
Do I need Landlord Insurance if renting to family?
We’d recommend it. Even if you’re not charging your family member rent, insurance can provide vital protection. If nothing else, Landlord Insurance can help you avoid falling out with your family members.
For instance, if they accidentally knock a glass of red wine over, ruining a carpet, your insurance may cover the cost to replace it. Without insurance, either you or your family member will have to cover the cost of a replacement.
Plus, if your family member has visitors at the house and they come to harm (for instance, tripping over an uneven floor tile) they may pursue you for damages. Landlord Liability Insurance will cover the cost of legal defence or damages.
Remember: you may need to put a tenancy agreement document in place in order to secure a Landlord Insurance policy. Standard template documents can often be found online to make this process easier. However, we would always advise that you get these legally checked.
Do I need Landlord Insurance for a flat?
Again, we’d recommend taking out a policy.
If you’re a leaseholder, you won’t need Buildings Insurance because this is usually managed by your freeholder. However, you may want to protect any personal items and fixtures and fittings left at the property.
Again, you’ll also need Landlord/Property Owner’s Liability Insurance in the event that your tenant or their guests come to harm. It will allow you to cover the cost of any legal challenges and damages awarded.
Do I need Landlord Insurance if I have a lodger?
It depends.
A lodger may be covered by your Home Insurance, but you’ll need to check in advance. This is because giving access to someone else to your home increases the potential risks to your property with the additional security risk and property damage, which could increase the chances of a claim.
For reference, your lodger is likely to need their own contents insurance. Your insurance policies protect your possessions, not theirs.
Do I need Contents Insurance as a Landlord?
If you’re leaving any personal items, fixtures and fittings at the property, Landlord Contents Insurance can help protect them against theft, loss or damage. Your broker will help you to decide just how much protection you need to avoid being over or under-insured.
What happens if I don’t have Landlord Insurance?
You may be lucky and not suffer any negative impact. However, if something does go wrong, you could suffer significant financial losses. Regular Home Insurance isn’t designed to cover the risks introduced by having tenants – your insurer could avoid paying out on a claim if you are letting your property.
Still unsure about what you need?
Speak to Rob about your Landlord Insurance on 01223 792262.
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