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Landlords Insurance What is it and what can it cover?

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By : Paul Stun    99 or more times read
As every landlord knows, a lot of time and energy is invested into maintaining and managing a property, perhaps even more so if the landlord has more than one property to take care of, and just like every homeowner, buy-to-let-landlords need insurance cover that will save them time and money in case of the unforeseen happening. However, the problems that face landlords can be very different from those faced by a normal homeowner. That is why specialist insurance cover can be bought to cover almost all eventualities.

There are a number of different cover options available in the UK and they include:

  • Loss of rent insurance - 12 months of cover up to 20% of the buildings sum insured to make sure a landlord receives income if damage or repairs to the property make it uninhabitable.

  • Alternative accommodation insurance - this is in case a landlord needs to make a claim on a buildings policy and the house becomes uninhabitable while repairs are being carried out.

  • Landlord liability insurance cover in case of a legal claim. According to ARLA (Association of Residential Letting Agents), personal injury claims have increased by 85% since 1990 and awards over 100,000 are becoming more commonplace.

  • Landlord buildings insurance - this can cover a landlord from anywhere between 75,000 and 2million to protect against the cost of structural repairs. Again ARLA estimates that 40% of UK properties are under-insured so it is crucial that a landlord makes sure their cover represents the full rebuilding cost for the property.

  • Landlord contents insurance usually from 5,000 to 50,000 to cover the appliances, carpets, fixtures and furniture on the property.

  • Accidental damage insurance to repair accidental damage tenants may cause to the buildings or contents.

These types of specialist insurance can be used to cover a wide range of rented property, accommodating a variety of styles, sizes, conditions, ages and locations including:

  • Houses
  • Bungalows
  • Flat(s) in a purpose-built block
  • Flats/bedsits in converted houses where you wish to insure the entire property
  • Landlords Contents of individual flats/bedsits within a converted house
  • Holiday homes in the UK

As well as insurers offering cover for different types of property, they can also offer cover for different types of tenants including:

  • Retired tenants
  • Asylum Seeker tenants
  • Holiday Rental tenants
  • Professional/Working tenants
  • Student tenants
  • DSS tenants
  • Housing Association tenants

It is worth noting, however, that landlords may find that some insurance providers are reluctant to cover landlords if they intend to let the property to certain tenants, such as those on state benefits, students, asylum seekers or multiple single sharers. That is why it is crucial to obtain a number of insurance quotes from a number of different companies as well as making sure to read all the small print before signing up for any policy.
This author writes on behalf of Simple Landlords Insurance who offer a range of landlords insurance to landlords in the UK.

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