Landlords have always had special requirements compared to other homeowners
and this is reflected with specialist landlord insurance policies.
Landlords Insurance Overview
There are many different types of Landlord. From the individual who
is renting out their second home to the ambitious property tycoon with
an ever-increasing portfolio of trendy dockside apartments. The common
theme for all landlords is the need to purchase landlords insurance
to protect their investment.
As a landlord, you are effectively using your property as an extra
source of income – and this needs to be protected. A normal home insurance
policy is not valid when you are taking an income from the property.
A residential landlord policy is what is required.
With the correct landlords insurance policy in place, you can relax
knowing that should any damage be caused to the property you are protected
against the financial consequences. With this peace of mind in place,
you can worry about running your property and nothing else.
Examples of claims which Landlord’s Insurance covers you for:
Landlord’s insurance would pay you should the following happen:
- Your property is massively damaged by a fire. Luckily your tenants
are not hurt but they have to move out as the damage is so bad. It
takes builders and decorators 3 months to repair the damage. Your
landlord’s insurance policy would not only pay for all of the work
to repair the property but also pay you the rent that you are missing
out on by not having tenants living in the property during this period.
- You fall out with your tenants. They stop paying the rent and refuse
to leave the property. You are forced to take them to court to get
them evicted and collect rent owed to you. If you have purchased the
“Legal Expenses” cover as part of your Landlord’s insurance policy
then all of your costs accrued in fighting the court case would be
compensated.
Frequently Asked Questions
What is the Buildings Sum Insured (BSI)?
You are always asked to give an estimate for the Buildings Sum Insured
(BSI) when going through the process of getting a Landlord’s Insurance
quotation. This is an estimate of the cost for rebuilding your property
should it be completely destroyed. Do not confuse this with the value
of the property (which is normally much more – especially in prime city-centre
locations) otherwise you will be paying more than is necessary for your
insurance. On the other hand, do not be tempted to deliberately understate
the BSI since should it come to making a claim the insurers will reduce
the amount that they pay you in proportion to the amount you have underestimated.
Why am I not already covered under my normal home insurance?
Home insurance policies will not pay when the property is being used
to make an income (for example when you are renting your property to
tenants). You must therefore buy a Landlord’s Insurance policy which
is especially designed and rated for these circumstances.
I have several properties, do I need to buy one policy per property?
No, you can buy one policy which covers as many properties as you have.
Using our online quotation system you can receive instant quotations
from many of the UK’s top insurers for one property or multiple properties.
How do insurers calculate the premium for Landlord’s Insurance?
Different insurers use different ways of assessing the risk of your
property and therefore how much to charge you. Some of the major factors
are:
- The location of the property (postcode)
- The Buildings Sum Insured
- The type of tenants in the property
- A history of claims
- The age of the property
- The type of property (flat, detached, terraced etc)
Instant Landlord Insurance Quotes
The following is an example of the kind of policy that
some insurers offer, and is published here to illustrate what you might
expect
Sample
Buildings
The property, including outbuildings and fitted interior units,
covered on the basis of full replacement or repair costs, subject
to policy excesses, against loss or damage caused by:
- Fire
- Theft
- Vandalism/malicious damage
- Lightning
- Oil or water leakage
- Smoke
- Storm (other than gates and fences)
- Subsidence
- Burst pipes
- Impact from vehicles, falling trees, animals, aircraft, aerials
and masts
- Civil commotion
- Earthquake
Contents
This is not a stand alone cover and is only available
as an additional section to a buildings policy.
Whenever you rent or lease your property you can cover
your contents on this policy, against fire and theft. This will include
cover for furniture, household utensils, kitchen electrical goods
and soft furnishings.
Summary of Pricipal Exclusions
- First £150 of any claim, both for Buildings and Contents increased
to:
£250 for malicious damage and theft in limited postcode areas
only.
- £1,000 of any claim for subsidence, landslip or heave.
- £500 of any claim for escape of water (e.g. burst
pipes).
- £500 if you have DSS Tenants and your property is
unoccupied.
- All water tanks and pipes must be properly lagged and
roof areas fully and adequately insulated.
- If the property was built prior to 1970 the electrical
system must have been tested by the local Electricity Board (or NICEIC
registered electrician) in the last 5 years.
- Ensure that any connected gas appliance is checked annually
by British Gas or by a registered Corgi installer.
- All necessary internal and external repairs to the building
must have been carried out prior to taking out the policy, unless a
detailed inventory is provided recording any pre-existing but un-repaired
damage, such as cracked sinks and baths.
- Properties used for holiday letting purposes.
- Properties unoccupied for more than 90 days.
- If you have DSS Tenants and the Buildings are Unoccupied
for any reason You or Your agent must inspect the Buildings at least
every 14 days to make sure that:
- the gas and electricity supply is turned off at the mains;
- the water supply is turned off at the mains and the system
drained (unless adequate level of heating is maintainted from fixed
heating appliances);
- all outside doors are securely locked;
- all ground floor and accessible upper floor windows are
securely fastened and any broken windows boarded up;
- the Buildings and all yards and areas surrounding the
Buildings are free from fuel and waste materials.
- You will be responsible for the first £500 of each
and every claim.
Important
- Over 6 properties
If you own more than 6 properties we are able to
provide particularly competitive premiums on a group policy basis.
- Split lets (student/non student/dss)
If your tenants are split between students, non students
and dss in any one property you can still be easily covered. Simply
indicate on the proposal form the category into which the majority
of your tenants fall - the premiums are the same for all categories.
- We also provide possessions insurance for students and young professional
occupants.
Buy to Let Insurance
Landlord Insurance is commonly also known as buy to let insurance. The
cover available under a buy to let insurance policy is the same as a
landlord insurance policy. You can get cover for your property, contents
and landlords liability insurance. You will also be able to get insurance
for a portfolio of properties as well as a singular property.
Posted February 9, 2006
Details correct at time of publication. . Terms and conditions can
change, this web site is not responsible for the publication of current
policy delails. Please check details before applying....
