Why is Property Insurance Cover required?
If you are the owner of a property that you want to rent there is no legal requirement for you to have landlord insurance or even buildings cover. However, if you have a mortgage on your property, your lender may stipulate that you have insurance cover.
Although many landlords assume that their conventional home insurance policy will also cover rental activities, this is not usually the case. Standard home insurance is not designed to protect rental properties, and as a landlord you should consider dedicated landlord insurance to give you the protection you need.
Although not mandatory, a good landlord insurance policy does not just include buildings cover. It can also offer public and property owners’ liability cover, cover for alternative accommodation (covers the cost of rehousing your tenants on a temporary basis if your property becomes uninhabitable due to an insured loss, for example a fire or flood costs.
You may also consider taking out loss of rent cover. This could pay out a monthly rent (from 12 to 36 months) in the event that your property was unfit to live in or access to the property is denied as a result of some kind of catastrophic event. Other covers include glass and locks replacement, contents insurance, Accidental Damage cover, Terrorism, Legal Expenses and Liability protection.
You should remember that although landlord insurance is not compulsory, there are several legal requirements associated with renting your property that you will need to adhere to. One of these is a gas safety regulation, which obliges a landlord to get a gas safety certificate every year.
Property insurance – what does it cover?
Landlords Buildings & Contents
We provide quotes to the Private Rented Sector for properties let to:
Professionals/People of independent means
DSS, DSS Referrals and Asylum Seekers
In addition we provide quotes for U.K. Holiday and Second Homes, as well as Holiday Homes within the European Union.
Providing the following cover for properties of all sizes throughout the UK.
Cover for Houses, Bungalows and Flats (purpose built and conversion) and listed buildings
Commercial and residential combined
Loss of rent cover is 20% of the Buildings Sum Insured (option to increase)
Property owner’s liability up to £5,000,000.00
Terrorism cover is optional
Up to 90 day unoccupancy clause
Contents cover available or automatically included
Insurance cover is ‘new for old’
Policy Excess: £100.00 to £250 for Buildings and £50.00 for Contents
Escape of Water excess standard £250 but dependent on area and insurer
Standard Subsidence policy Excess: £1000.00 unless otherwise endorsed
All policies cover all the standard perils such as:
Fire, Smoke, Explosion, Lightning, Earthquake
Storm or Flood
Theft or Attempted Theft consequent upon violent and forcible entry
Escape of Water
Malicious Damage consequent upon violent and forcible entry
Riots or Civil Commotion
Collision, Falling Trees or Branches
Lamp-posts, TV aerials or Masts
* Terms and Conditions apply.