Advice on Landlords Insurance
Legal stuff
This is just an introduction to property owners insurance and is not intended to be representative of the covers or restrictions offered by any particular insurance or that all insurance provide the protection described. You can get a recommendation for a particular insurance to suit your own circumstances by talking to the skilled staff at any Coversure branch.
Why buy Landlords Insurance?
Because you want to protect yourself against the costs you might incur if your property is damaged whilst it is let out.
If you have a mortgage on the property, it is usual for the bank to insist that the building is insured.
What is covered?
Normally damage caused to your property due to fire, bad weather, flood, subsidence, or malicious damage.
Your liability to other people using your property if they are injured or have their own property damaged due to your negligence will be covered.
What is not covered?
There are normally reduced levels of cover if your property is unoccupied for an extended period of time, say 30 days.
Damage due to normal wear and tear or poor maintenance will be excluded.
If you have a claim, you will be expected to pay the first amount of the claim, known as the excess. This may be £250 or more, but if your claim is for subsidence it might be £1000.
Don't forget that the amount that you should insure for is the cost of rebuilding, rather than the resale value of your property.
What does it cost?
It depends on the value of the property. During November 2006 Coversure clients paid an average of £357 for landlords or holiday home insurance.
What to watch out for?
Watch out for restrictions in cover whilst the property is unoccupied.
If your property is near a lake, river or sea, or any kind of water, check that you have adequate cover against flooding. Some insurers will insure your property if you are in an area of flooding but exclude damage due to floods.
What options are worth having?
You may be able to include accidental damage at a small extra charge, and there are normally options to insure the landlord’s possessions, and even the tenant’s possessions. Some policies have an option to include legal advice and representations in disputes with your tenants. If your policy has this option, it will be worthwhile to take it out, although you can buy this cover as a separate policy from specialist providers. Typically a legal protection policy will also provide assistance with debt recovery.