Defining the Different Types of Cover for Landlords

As a landlord, there are three main types of cover you'll need to provide: buildings insurance, contents insurance, and liability insurance. These will not only help out your tenant, they'll protect you. Don't be tempted to undervalue areas of your home in order to get lower rates. Some companies like UKInsurancenet have a quick quote service to give you an idea about you'll be paying.

Buildings Insurance

We'll start with buildings insurance as it's the simplest concept. This protects the bricks and mortar that makes up your property as well as the land it stands on. Structural damage, from floods, landslides, or a fire, will be covered as will vandalism or any malicious damage. You can extend this protection to subsidence or frost damage to pipes is you feel it's necessary. The price you pay will be dependent on a number of factors, such as the age of the house, its location, and the materials it's made from.

Contents Insurance

The second type of cover you'll need is contents insurance. This is needed whether you're marketing the property as furnished or unfurnished, as it covers damage to any major appliances as well as the floors, walls, etc. When you're looking at insurance providers, make sure that they cover accidental damage against both sanitary and glass fittings. These are by far the most commonly damaged fixtures in rented accommodation.

When it comes to theft, the phrase you'll be seeing is through forced or violent entry'. What this means is that there needs to be demonstrated proof that the home was broken into. Insurance companies do this so they don't have to pay up when a tenant accidentally leaves with one of your kitchen appliances when their contract ends. This is also why insurance policies have excess levels, the amount you're required to pay when you make a claim. A high excess will lead to a cheaper overall insurance price, but if it's too high it could prevent you from submitting more worthwhile claims in the future. To prevent small claims like this, make sure you demand a deposit at the start of the contract. Use this to deduct the cost of anything that goes missing or is damaged.

Liability Insurance

Finally, there's liability insurance. This won't be something you've dealt with on your personal home. The point is to insure you if anyone gets injured, or worse, on your premises. You'll need this to compensate for any legal fees that are required if the incident escalates to court. Similarly, if you are going to employ anyone to work at the property, such as a regular cleaner, you'll also need employer liability insurance for the same kind of cover.

Navigating through the terms and conditions of different insurance options can feel like a minefield. For those new to the property market, especially, just getting to know what kind of cover you'll need can be difficult. Looking to sell your property instead Take a look at our guide on how to increase its chance of being snapped up.