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Landlord Insurance - Some Frequently Asked Questions

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By : Paul Stun    99 or more times read
What is Landlords Insurance?

Landlords Insurance is an insurance policy to cover a property owner from financial losses connected with their property which has been let out to tenants.

What are some of the main types of insurance for landlords?

Buildings Insurance - The structure is insured against most risks for the cost of rebuilding or repairing.

Liability Insurance - Covers you against personal injury claims up to a certain amount.

Contents Insurance - cover for the items inside your property such as chairs, sofas and carpets in case they are damaged or stolen.

What is the Buildings Sum Insured (BSI)?

When getting a Landlord's Insurance quote in the UK you will usually be asked to give an amount for the Buildings Sum Insured (BSI). This figure is the cost for rebuilding your property if it is damaged irreparably. Don’t confuse this with the market value of the property which is normally much higher than your sum insured. It is of equal importance not to underestimate your Buildings Sum Insured since, should it come to making a claim, your insurers will reduce the amount that they pay you in relation to the amount you have underestimated.

How can I calculate the amount of buildings cover required accurately?

The amount of buildings cover must represent the full cost of rebuilding your property. If you are in the UK and are unsure how much cover you need, check the Association of British Insurers website which will be able to help with a handy calculator.

Why does a traditional home insurance policy not cover my rental property?

A normal home insurance policy may not pay out when the property is being used to make an income. Equally, Landlords Insurance provides additional cover which is not offered through normal home insurance policies.

Can I insure my property even though it is let to students or DSS tenants?

Certain insurance providers can offer cover for a wide range of tenants' types, so it is worth comparing with providers if this is the type of cover you need.

Can I solely insure the contents of my property?

Again, some companies will offer this service and some won’t, so make sure you are made aware of what types of cover you are offered in the quote you obtain.

To ensure you are fully protected, it is recommended that you obtain a number of quotes from a variety of providers and then purchase a Landlord's Insurance policy which caters for your specific needs and circumstances.
Comprehensive landlord insurance is available from Simple Landlords Insurance - Simple Landlords Insurance

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