Landlord
Buy-to-Let (BTL) property can be a good investment that allows landlords to earn passive income. But like any other type of investment, before diving in, there are risks implicated that should be taking into consideration.
There are other risks that can be mitigated to protect yourself as a landlord by taking the correct steps. One of the main protectors for landlords is buy-to-let insurance or landlord’s insurance.
For landlords, getting landlord insurance is one of the best ways to cover themselves against unforeseen circumstances. The type of landlord insurance depends on the specific risk that a landlord wants to cover.
This article will explain the different types of landlord insurance in the UK.
The different types of landlord insurance in the UK
Landlord Buildings Insurance
With landlord buildings insurance, landlords are covered for the damages that could happen to the building or the property itself when caused by an incident such as fire, flood, vandalism, burst pipes, water leakage, and damage caused by the impact of falling tree or vehicles.
Landlord Contents Insurance
With landlord contents insurance, the items that can be removed from the property are covered in the insurance against theft or damage. These include the furniture, curtains, carpets, household utensils, and white goods if the property is provided as furnished. Although normal wear and tear are not covered with contents insurance.
And the insurance will not protect the belongings of your tenants. It is the responsibility of your tenants to arrange cover for their belongings.
Landlord Liability Insurance
If something happens to the tenant because of the buy-to-let property, and there are cost of claims from injury or damage to the tenant, landlord liability insurance will cover it. For example, your tenant got electrocuted due to the faulty appliance you have provided. The landlord liability insurance covers you against the cost of the claim and the legal expenses associated with it.
Rent Guarantee insurance or Tenant Default Insurance
With landlord rental protection insurance, if your tenant has been unable to pay their rent. Rent guarantee insurance can help you be protected from being out of pocket. Since it takes months to evict a tenant and to regain possession of your property, this type of insurance will cover the cost of legal disputes concerning the eviction and repossession of the property as well as your rental income.
Loss of rent insurance
With the loss of rent insurance, the landlord gets paid if the property becomes uninhabitable for a period due to loss or damage caused by fire or flood. This means that the tenant could not stay in the property anymore.
Accidental damage insurance
In the event where the tenant caused damage to the property such as spilling of something on the sofa or other accidental damages, the accidental damage insurance will cover it. It also protects the landlord from other damages such as the breakage of a window or broken doors. Again, normal wear and tear are not included.
As a landlord do you need to have insurance?
While landlord insurance tends to be mandatory, other types of coverage are only optional. Some landlords want to be equipped with comprehensive coverage that protects their property from head to toe. On the other hand, some landlords are simply happy to have their basic insurance for the property.
Bluestone Properties
Bluestone Properties is in south west London. We provide lettings and property management in south London and surrounding areas. Bluestone Properties takes out the hassle of finding tenants and managing your property. If you need our lettings and property management needs, call us on 0208 355 3405 or simply contact us by clicking here.
