Landlord Insurance

Insurance created specifically for landlords is available from a range of suppliers to ensure that you are protected against risks you may find yourself open to as a landlord.

What is Landlord Insurance?

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.

What Does Landlord Insurance Cover?

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:

Accidental Damage

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.

Rental Arrears Protection

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)

Legal Expenses

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.

Emergency​

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.

Optional Landlord Insurance Coverage

Some landlord insurance providers offer optional covers. Based on your location, neighbourhood, and rental condition, you can add extra coverage to your insurance. This coverage includes:

Vandalism

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.

Burglary

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.

Rental Property Under Construction

Are you renovating your rental property? You can purchase an additional policy to protect the structure until the property is occupied.

Key Care Insurance

If your tenants lose or break the keys, a key care insurance policy can cover the cost of making new keys or replacing locks.

Optional Landlord Insurance Coverage

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:

 

  • Call Their Claim Number that is given on your policy documents.

  • Explain the Reason To Claim, you may have to complete a claim form, but some insurers want to take some if not all the details on a phone call.

  • Follow Insurer’s Advice on how you can limit the damage and pay your excess.

  • Send Required Paperwork that can include supporting documents such as photographs and estimated cost of the repair.

  • Meet With The Surveyor who can visit your home to check the damage and take further details.

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

Can I Get Landlord Insurance for Multiple Properties?

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.

Purchasing Multi-property Landlord Insurance

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.

Why Choose Our Multi-property Landlord Insurance?

  • A comprehensive cover for each property in your portfolio.

  • Trusted expert advice.

  • You can add unlimited properties.

  • No hidden charges.

  • Discounts for multiple properties insurance.

We also offer additional covers such as content insurance, rent guarantee insurance, home emergency and landlord liability insurance.

Is Landlord Insurance a Legal Requirement?

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.

How to Get Cheap Landlord Insurance?

For landlords renting out their properties, insurance is an important investment. Choosing the right policy can help you to protect your property and tenants. The cost of landlord insurance varies with several factors. Some of them are not in your control, such as the location of the property and the employment status of your tenants. However, you can get cheap landlord insurance if you think about the following:

Choose The Right Cover

Take proper time to find out which type of cover can be best for your property. You need to pay more when you add any extra cover. You can save money by avoiding or removing those covers from your policy that your property does not need.

Don’t Leave Your Property Unoccupied.

Unoccupied properties are at the highest risk of theft or damage. The more the risk, the more will be the cost of insurance. Thus, it is best to make sure your property is occupied whenever possible to get cheap insurance quotes.

Keep Your Property in Good Condition

When you keep your property well maintained and in good condition, there are fewer chances of making claims. This way, you can get lower insurance premiums.

Don’t Choose Tenants with Pets.

Avoid the tenants who have pets because pets can cause damage to your property. This type of damage is not covered by standard landlord insurance policies. If you want a cover for such situations, you have to pay more.

Avoid Making Small claims.

The insurance cost gets higher whenever you make a claim. It is better to pay for minor damages by yourself and build a no claim bonus. Many insurers provide discounts on the basis of your no claim bonus. If the number of claims is high, the insurance cost also increases.

Increase Security of Your Property

When you increase the security of your property, the chances of burglary are reduced. It means you will have less risk, and chances of making claims also reduced. That is why insurers offer low premiums for highly secured properties.

Pay Annually

You can see that when you pay a lump sum amount of insurance instead of a monthly instalment, it will work out cheaper. Therefore if you can pay annually, you can reduce your landlord insurance premium.

As with all insurance packages, be sure to read the details. You’ll find a better deal if you purchase all the options you require within one policy, but read the specifics of what you are covered for and ensure the coverage is suitable for your needs and situation.