Provides protection for landlords for various contingencies involving their rental property. A policy provides specialised cover that can include:

  • Contents cover
  • Tenant’s cover
  • Rent guarantee cover
  • Building cover
  • Emergency cover
  • Third party cover
  • Contents Cover

    Contents cover provides landlords with protection for the contents in their rental or lease properties. In many cases, landlords provide furnished rentals that can contain thousands of pounds of furnishings.

    The contents policy compensates owners in case of accidental or malicious damage caused by tenants, or, in some cases, protects contents even for empty rentals. Policies can differ widely in the amount of cover they provide.

    For example, some policies may only provide limited cover for items like furniture, carpets and curtains. Full contents cover will protect the entire house contents so long as you properly document all items.

    Tenant’s Cover

    Tenant’s cover protects a landlord’s investments when they let property. If you have a letting agent, you generally do not need to worry about this type of insurance. However, if you do the letting on your own, then you should acquire this type of cover.

    A tenant’s policy provides protection for the property buildings in case of events like:

    • Malicious damage
    • Fire and smoke damage
    • Flooding, lightning and other damage caused by nature
    • Plumbing damage
    • Burglary and theft
    • Gas and other types of explosions

    Rent guarantee

    With this type of cover, landlords can make claims when their tenants cannot pay their rent on time. Even when landlords take proper precautions in qualifying tenants, unforeseeable circumstances can arise in which even the best renters are unable to pay their bills.

    Rent guarantee insurance keeps the cash flowing as your tenants try to get things back in order. This type of cover not only provides money during such times, but in some cases, it will also cover legal expenses incurred in resolving the delinquent payments.

    Building Cover

    Building cover pays for various expenses connected with damage or destruction of your rental properties. For example, if a flood damages your buildings, the insurance will pay for necessary repairs.

    Additionally, building cover can compensate the landlord for lost rent, legal fees and other expenses caused by building damage or destruction. This type of cover can differ significantly depending on the policy with some plans limiting protection depending on the cause of damage.

    Emergency Cover

    Cover for emergency situations provides landlords with resources when unexpected difficulties arise. For example, there may be situations in which the landlord must make rapid repairs to buildings.

    Emergency cover differs from other types of protection in that it provides cash to the landlord rapidly. Generally, the insurer will offer a 24-hour emergency hotline to call so that you expedite the claims process.

    Third party Cover

    Public liability cover protects you in cases that involve members of the public who suffer damage while visiting a property that you own. For example, if someone should slip on a wet surface while visiting your property, they could sue you for compensation.

    Third party cover compensates you should you need to pay such claims and this type of cover can also cover legal expenses connected with such cases. As public liability lawsuits can become expensive, this is an important policy to consider.

    What to look for

    The types of cover offered can vary markedly when comparing policies. You should carefully read the fine print to ensure that you know what types of protection is available for each policy.

    For example, does the plan cover damage caused by storms, earthquakes, floods and fire? Some types of building cover, for example, will cover fire damage or flood damage, but not both types of damage together.

    The cover limits are the maximum amount of money the insurer will pay out in case of a claim. You should make sure that the limits cover the total value of your property if you want full compensation when you make a claim.

    Exclusions are another important consideration when comparing premiums. For example, even if you have protection for fire damage, the cover may not apply in cases involving certain types of negligence on your part. Read over the exclusions carefully so that you do not get surprised when you need compensation.

    How much cover do I need?

    Generally, it is a good idea to talk with an agent to assess your insurance requirements. Depending on your budget and needs, you will be able to decide on the policy best for you.

    Work with different providers to see which one offers you the best deal and the best customer service. In many cases, insurers may be ready to offer you special discounts or incentives in order to win your business.