Do I need landlord insurance?
Landlord insurance is a specialist policy that provides more cover than regular buildings or contents insurance. Indeed, standard home insurance might be invalidated if your property is let to tenants.
Additionally, if you’re taking out a buy-to-let mortgage your lender might require you to have landlord insurance in order to qualify for the loan.
What does landlord insurance cover?
In addition to cover for general risks such as fire and storm damage to the building, the best landlord insurance policies offer cover for:
- Accidental damage – if your tenants damage your property unintentionally
- Malicious damage – if your tenants intentionally damage your property
- Employer’s liability – if you employ people in your property who then become injured as a result of your negligence
- Property owner’s liability – if you are deemed liable for damage or injury suffered by third parties arising from your ownership of the property
- Unoccupied property cover – if you have no tenants for a period of time and therefore aren’t getting rental income
- Loss of rent – if your tenants are unable to pay their rent