Important Factors to Know Before You Take Our Landlord Insurance Policy
Being a landlord, can at times be an expensive business, especially when you are not aware about landlord insurance policies. Having the right kind of policy is essential, otherwise you will be required to cover the bill if things go south. Here we will take a look at what makes a good landlord’s policy, and how it will help you in times of crisis.
Do you need landlords’ insurance?
A landlord’s policy includes many useful features, such as accidental damage, buildings insurance, and financial protection against loss of rent. It is not compulsory, but some lenders can make it an essential requirement. If you are a residential landlord, you will need to follow Residential Landlord Insurance Policies. Similarly, if you are renting out a commercial building, you will need to follow Landlord Insurance for Commercial Landlords.
Landlords’ Buildings Insurance
One of the main types of insurance is buildings insurance, it will cover the insurance of the structure of your building. For instance, if your property suffers from a fire or flood, your building insurance will cover the rebuilding cost. This is essential, as it gives you a peace of mind, even against natural occurances. This will include repairing the kitchen units, bathroom suites, and there are policies that might cover garages, sheds, and other outbuildings. Before you take on a building insurance you should know the rebuild cost of the property you are putting under insurance. If you own a commercial building, you need to check Commercial Landlords Insurance Queries
Landlords’ Contents Insurance
This is an important cover, especially if your rented property if fully or partly furnished. This insurance covers beds, sofas, carpets, TVs, and other possessions. Their insurance will cover theft and damage to these possessions. There are some that will offer accidental damage, which covers everything from coffee stains on your expensive rug, to a smashed mirror. Keep in mind that you do not have to place insurance over your tenant’s possessions, as they are responsible for their possessions.
Landlords’ Liability Insurance
This can be added as an extra to your policy, and is essential if you are renting out your property to students or social housing. This policy will help cover against tenants who sue you for accidents that occured on your rented property. As you will not be able to keep a check on who is coming and going from the property at all times, this policy will help protect you from injuries, or deaths that take place on your rented property.
Loss of Rent Insurance
If your property has become uninhabitable for any reason, and you are not able to rent it out for a certain time; the loss of rent insurance will help you cover the losses. This will help save you at times, especially if you have taken out a large mortgage on the property; and you rely on the rent to cover the monthly mortgage payment. This loss of rent insurance will help you get through this time, and you will not be at risk of losing your entire property.
Legal Expenses Insurance
It is a good idea to cover yourself against any legal cost, that can come with potential disputes you have with tenants, including repossessing your property, by evicting squatters. This insurance will cover the cost of defending you against any criminal action taken. This legal expenses insurance can be extended to help you recover any outstanding rent the tenant owes you, so it is advised to check the details of your legal expenses insurance policy.
The landlord insurance prices depend on the kind of insurance you are taking on, and what kind of a property it is. The price will increase every time you add something extra to an existing cover.