Getting the right insurance is always important, but with a wide range of insurance options around what cover do you actually need? Well, as a property owner you will want your property or even properties to be fully covered should anything happen, but instead of just listing off some policies you may require we are going to go into a bit of detail about each one. This will hopefully give you a comprehensive understanding of the different options that you may need to consider as a landlord.
If, at any point, you require any assistance around property owner insurance, even if it is just a question, feel free to call us by calling 01642 913 161 or you can click here to find fill out a contact form.
Buildings and Contents
In a landlord insurance package, building cover should be one of the main parts of the policy, this cover literally protects your building from the costs of damages. Buildings cover can protect you from minor or major damage, from a wall collapsing to a full rebuild, buildings cover protects it all. In some cases, if you are borrowing money to pay for your property the lender may require buildings insurance before granting you funds.
Contents insurance can be vital if you are leaving any contents for your tenants to use, such as furniture or fittings. With contents cover you can rest assured that the items you leave in the property are protected should anything happen, either a stain from red wine or a minor fire causing damage to your contents in a living room, contents insurance will have you covered.
In both of these cases you will be asked for a value, in the terms of the building this is normally less than the market value. In both cases you don’t want to value these too high or you could see your insurance cost increase, but you also don’t want to underinsure your products as if a claim does happen the insurer may not pay out the full amount required. Ensuring you provide an accurate valuation will allow you to have the right insurance policy, covering you when you need it most.
Public liability insurance can be a vital cover for all landlords, this cover will protect you if any of your tenants, their guests, or a member of the public make a claim against you. While you may think a claim is unlikely, it is important to have this cover in place, a small trip over an unhidden wire or if a tile falls off a roof and hits someone you could be liable. In both of these cases you could find yourself taken to court, though public liability can pay out for your legal fees as well as any compensation you require.
Circumstances can change, and this can be no different for your tenants and it may get to the stage where they are no longer paying their rent, if this happens rent guarantee insurance may be able to help. This cover is to make sure you don’t lose out if rent is stopped being paid, it can help pay the legal fees to evict the tenants in this case or to pursue the unpaid rent. This cover can literally keep you in the property market, as unpaid rent can be a massive problem for small landlords.
You may find at times your property is empty, this could be because you are in-between tenants or you could be renovating it for your next tenants, either way you will want to get unoccupied cover. Due to no one being at the property your standard buildings and contents cover may not be enough, there are greater risks with a property being unoccupied including:
- Increased likelihood of extreme damage – if a pipe bursts it may be a few days before it is noticed, meaning more damage could be caused meaning higher costs for your insurer
- Break ins – an empty property with contents can be a tempting target for burglars
Unoccupied cover is there to cover your property to make sure it is safe, in most cases you can get access to short-term cover, so there is no need to have this cover in place for an entire year, which can help keep the cost down.
Contact Coversure Middlesbrough
We hope the above has helped you understand the benefits of different insurance types for property owners, a landlord insurance package can normally contain most of the above. If you have any questions, or would even like a quote for your insurance cover then get in touch with us today. You can call us on 01642 913 161 or head here for our full contact details.