What Is Landlord Insurance? Everything About Landlord Insurance Explained In 7 Steps.

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What Is Landlord Insurance?

Landlord insurance is a specialist product that covers landlords from damage costs and various different financial losses that come with the territory of being a landlord. Amongst all the positives, unfortunately, there’s a lot that can go wrong when you’re a landlord that can in turn, cost you a lot of money.

With that in mind, your landlord insurance policy is really important for any landlord. Buildings insurance and contents insurance are usually the main types of cover that a landlord will need, however a lot of other landlord-specific covers can be added onto a policy, such as legal expenses insurance and alternative accommodation expenses.

Landlord insurance is similar to normal household insurance cover except it is specifically designed for buy to let properties.

Also known as buy to let insurance, it offers similar cover to home insurance, protecting the building against common risks such as flood, fire, storms and burst pipes. Alongside this, it also covers you for the risks you face as a landlord when letting your property, such as rehoming your tenants into temporary accommodation and property owners liability.

Providing tenants with a property to live in is a big responsibility. If you want to enjoy the peace of mind that your rental property is protected, then CIA Insurance can provide you with a great deal on the cover that you need.

What Does Landlord Insurance Cover?

You can tailor your landlord insurance policy, depending on what you'd like to be covered for. The more cover you include, the higher your policy premiums are likely to be. The different levels of cover you can choose from include:

  • Buildings only
  • Buildings & contents
  • Contents only (not including your tenant's belongings)
  • Fixtures and fittings
  • Full accidental damage
  • Loss of rent
  • Alternative accommodation
  • Property owner's liability
  • Unoccupied property cover
  • Legal protection
  • Malicious damage caused by tenants up to a maximum of £5,000
  • Theft by tenants up to a maximum of £5,000

Put simply, landlord insurance provides you with protection against the eventualities that you are at risk of as a landlord.

Do I Need Landlord Insurance?

There is no legal obligation for a landlord to take out landlord insurance. However, that certainly doesn't mean that you shouldn't bother taking landlord insurance out. A conventional home insurance policy does not offer the appropriate cover for a buy to let property. Plus, if you have a mortgage, then it's highly likely that your lender will require you to take out specialist landlord insurance before you take on tenants.

Landlord insurance is the best way to safeguard your financial future and protect your investment. Make sure you have all the appropriate cover before your tenants move in.

How Much Does Landlord Insurance Cost?

There is no one-size-fits-all solution to landlord insurance, therefore costs can vary from policy to policy. That's why we would always recommend that you compare landlord insurance quotes to find the best deal. The cost of landlord insurance depends on the following:

The level of cover you take out – the more you cover, the more expensive your premiums are likely to be
The location of your property - insurers will take factors such as crime rates into consideration

The size and age of your property - these factors have an impact on the cost of potential repairs
The type of tenancy agreement that you have

Your claims history - like with other insurance types, if you have made a previous claim then your premium will raise

How you decide to pay - paying annually works out cheaper than paying monthly. 

Types Of Landlord Insurance

There are a few different types of landlord insurance available. Which one you choose will depend on the specific risks you feel it's most important to be covered against. The different types of landlord insurance include:

  • Landlord Buildings Insurance

Buildings insurance protects the property's structure against unexpected and unavoidable events that may cause damage, such as storms. It also protects any fixtures and fittings, excluding anything that belongs to your tenant.

  • Landlord Contents Insurance

Landlord contents insurance protects the contents of your buy to let from damage and life's little accidents. This includes carpets, appliances and furniture. You should seriously consider this cover if your buy to let property is furnished or semi-furnished.

  • Loss Of Rent Cover

Loss of rent cover protects you if your property becomes damaged and unlivable due to an insured peril and you are temporarily unable to rent it out.

  • Employers' Liability Insurance

If you employ anyone at your rental property, such as a cleaner, gardener, or even a volunteer, employers' liability insurance is a legal requirement. This insurance covers you for legal defence costs and any awards made for accidental injury or illness caused to said staff due to your negligence.

  • Property Owners' Liability Insurance

If a tenant has an accident on your property and considers it to be your fault, they may decide to make a claim against you and take legal action. Property owners' liability insurance is designed to provide cover for any legal defence costs and expenses, as well as damages awarded.

  • Unoccupied Property Cover

There may be times when your property will be unoccupied. This may be because you are between tenancies or perhaps you have minor repairs and decorating to do. This is where our unoccupancy period can help you out. The unoccupancy period allows up to 60 days of your home being unoccupied with no impact on your cover.

If your property is unoccupied because are having work done to your property, then you will need to check what cover your policy offers. You may require an unoccupied policy.

  • Is A Landlord Insurance Legally Required?

There is no legal obligation for a landlord to take out landlord insurance, however, you might not get very far without it. You’ll usually need written permission from your lender before you take on tenants (unless you have a buy-to-let mortgage), and your lender is likely to require that you have landlord insurance before you do so.

Even though you’ve probably got a conventional home insurance policy, this won’t be enough to cover you if your property becomes a rental. In fact, a lot of home insurance policies will become void if the property is being used as a rental, meaning that you won’t be able to make a claim. 

  • What Type Of Landlord Insurance Do I Need?

There are a few different landlord insurance options. Which one you choose will depend on the specific risks you feel that it’s most important to cover against. The most common product and the one that we sell here at CIA Insurance is buildings and/or contents insurance. It’s also the most complex and extensive. 

  • What Does Landlord Insurance Cover Me For? 

The standard perils landlord insurance covers you for are the same as standard home insurance. This includes things like fire, storm or floods, escape of water, subsidence etc. The difference is the policy will also include things like, loss of rent in the event that the property becomes uninhabitable due to an insured peril and liability cover in case of the tenants having an accident. 

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