Also known as buy-to-let insurance, landlord insurance is designed to cover the costs specific to your position as a landlord; owning the building, some of the contents, and having a tenant stay within your property under the terms of an AST (Assured Shorthold Tenancy). Unlike car insurance, having landlord insurance is not mandatory. However, standard buildings and contents insurance policies may not cover you in the event of a claim.
If you have a mortgage against the rental property, your lender may specify that landlord specific insurance is required. Your tenant will have given you a security deposit (typically the equivalent of 5 weeks rent), which will cover any damage to your building or inventory items up to that value. However, over and above that, you will not be able to recover; you are able to insure that additional risk.
Landlord insurance is a wise investment for property owners who want to rent out their properties. Different types of landlord insurance are present that provide cover against different risks. When you are buying insurance, you can choose a cover based on the type of risks you want to cover.
As a landlord, the types of insurance you should be looking at (some of which can be combined within one or many policies) are:
When a tenant causes damage over and above their security deposit value, or perhaps if you’re making repairs to the building or items you have within the property.
You can also buy landlord content insurance if you want to cover your possessions such as furniture and other items in case of damage or theft.
In case a tenant is not paying you rent under the terms of their AST, you will be covered for a specific period as you go through the process of evicting them from your property.
Pay particular attention to the details of the different policies; some cover you for different amounts and only begin payment after a certain period of non-payment of rental (for example, 6 months)
Landlords face a different set of responsibilities compared to a regular homeowner, and facing any legal challenges (such as evicting tenants) could prove quite costly. You can get cover for legal expenses as a part of your insurance package with insurance providers.
Landlord liability insurance provides you a compensation cost to pay medical bills if a tenant gets injured at your property and you are held responsible for it.
Landlord building insurance covers you in case of emergencies. For example in the case of gas leaks, flooding etc., you may be faced with large repair bills – consider insuring against these cases as part of your landlord’s insurance package.
You may need cover to repair vandalism damage. A standard landlord insurance policy does not cover the vandalism damage unless you purchase vandalism coverage with it.
Standard landlord insurance may cover you for damage caused by a break-in. But it typically would not pay to replace stolen items. Optional coverage is available for the theft of items.
Are you renovating your rental property? You can purchase an additional policy to protect the structure until the property is occupied.
If your tenants lose or break the keys, a key care insurance policy can cover the cost of making new keys or replacing locks.
To make a claim, first, check the terms of your cover because you may be restricted on what you can claim. If your property is vandalised or burgled, you have to report your nearest police station as soon as possible and save the incident number they gave you.
After that, you can report the incident to your insurer by following the steps below:
The process of making a claim can be different for different insurers. Check your policy documents to find what details your insurer requires to speed up the process and get your claim paid quicker
Multi property insurance is available for landlords who have a portfolio of properties. It is challenging to manage a portfolio of properties, and it can be a full-time job, including different contracts to sort out and dealing with maintenance issues.
It can be very difficult to organise multiple insurance for different properties that you rent out with so much to get done. If you want peace of mind that all your properties are covered, you should purchase multi-property landlord insurance if something goes wrong. This insurance provides cover for all your properties, whether commercial or residential, on a single policy.
Whether you have a single property or multiple properties, Deppy can help you in all cases. Our multi-property landlord insurance provides the right level of cover for each individual property. However, as each property has different requirements for protection, you will need to fill a quote form online for each property.
You can insure unlimited properties with our multi-property insurance, and you have only one renewal date. This way, you can keep your insurance related administration to a minimum and save your time and money.
We also offer additional covers such as content insurance, rent guarantee insurance, home emergency and landlord liability insurance.
It is not a legal requirement to have a landlord insurance policy, but a standard home insurance policy would not provide you cover if you are renting your home. If you rent your property without landlord insurance, your property will be at high risk.
Moreover, when you have a mortgage on your property, your mortgage lender could ask you to have proper landlord insurance before you rent it. You may also have to get written permission from your mortgage lender for renting out your property. Thus, take it into consideration; otherwise, you might break the mortgage terms.