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Should I Get Landlord Liability Insurance?

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The kind of landlord insurance you require is contingent on the particular risk you wish to guard against. You might want to secure your building from damage and yourself against claims for compensation However, you may be thinking about a policy that will protect against legal costs and risks during void periods and other.

What kind of insurance do I require as an owner?

There are a variety of landlord insurance policies you could think about, each of which covers a specific risk for the building or you. This includes the landlord’s responsibility insurance, buildings insurance and the loss of rent.

It is important to keep in mind that a typical home insurance policy isn’t likely to cover you should you decide to lease your home out. To ensure that you are secure, you must purchase a dedicated landlord insurance.

What kind of insurance do you require as a landlord?

Insurance for the landlord’s liability

Insurance for landlord liability protects you from damages resulting from injury or damages to a tenant or visitors as a result of an incident that occurs at your property. These kinds of claims are often significant, so it’s essential that you’re insured. The causes of claims can be as easy as a trailing cable or, even more serious defective electrics. Insurance for landlord liability protects you against the costs of the claim as well as legal costs.

Buildings insurance for landlords

Landlord buildings insurance protects you against damages to the property in the event of an accident like flood, fire or vandalism. This insurance covers structures of your building like floors and walls however not the contents. For this, you can read more about the insurance for contents of the landlord below. Remember that your home insurance policy won’t provide protection against these risks should you decide to let the property.

Insurance on the contents of the landlord

Insurance for the contents of your home or apartment protects you from items such as furniture and white goods against loss or theft. However, it is important to keep in mind that this type of landlord cover will not cover you against normal wear and tear that occurs throughout the duration of an tenure. In the same way, it is crucial to remember that a landlord’s contents insurance policy does not cover your tenant’s belongings Therefore, you might want to make them aware of their own coverage.

Insurance for loss of rent

Insurance for loss of rent is paid out in the event that your home becomes inaccessible for a time due to an insured event , such as flood or fire. It is not to be confused with default insurance for tenants which is designed to guard your property from non-paying tenants.

Tenant default insurance

If your tenants are unable to pay rent on a regular basis for the past two months, the tenant default insurance could protect your expenses. This kind of insurance could pay up to 8 months rent in such situations. But you should ensure that you run credit or referencing tests at the beginning of your lease to ensure that you are insured.

Accidental damage insurance

Accidental damage insurance protects your against issues like an accidental spill of wine on your sofa or the consequences of an unintentional DIY project. Based on the type of cover you purchase it could also shield you from accidents that occur outside like damaged windows. But, again you must keep in mind that insurance against accidental damage does not cover ordinary wear and tear and generally doesn’t protect you against the work that is performed by contractors.

Insurance for alternative accommodation

If your tenancy contract requires that you provide alternative accommodation in the event that your home is no longer habitable and you need to insure alternative accommodation, the insurance will be able to pay for the costs. As with the insurance for loss of rent, but alternative accommodation insurance will only be paid out in the situation where your tenants are forced to leave due to certain insured events such as flooding or fire.

Insurance for unoccupied properties

If you’re concerned about the security of your home during empty times, it’s worth purchasing insurance for your property that is not being used. This will protect you during the times that the property is not occupied however, you must remember that you’ll require periodic inspections for you to stay insured.

Home emergency insurance for landlords

The landlord home emergency insurance gives you with 24-hour access to assist with drainage, plumbing heating, power as well as damage to access points that may cause the property to be unsafe. In certain instances, the insurance for landlords home emergencies may include the cost of alternative housing in the case there is a chance that any of the issues causes the property to be unusable for a time.