All landlords and investors of buy-to-let investors need to be thinking of the potential challenges that can happen when letting out properties. While many think that non-paying tenants are the biggest concern, there is one problem that is often ignored: damages related to the property.
Why do you need property owners liability cover?
When you’re renting out a space, whether it’s for private tenants living in a home, or a commercial space open to the public, there could be the potential for an accident. If the accident is found to be a problem with the property and causes an injury, you’ll be made liable for the costs of damages. This might include medical care, loss of earnings and legal expenses.
These costs can mount up and turn a profitable venture into a costly mistake. That is why you need to have property owners liability cover. This protects you financially from the burden of these costs when your property is found to be the cause of an accident
Won’t regular maintenance protect you?
While regular maintenance will limit the risk, there is always the chance, however unlikely, that there could be an accident. After all, you can’t always vouch for the professionalism of repairs to the property, the quality of the materials, or the rate of wear and tear on your property. So, while you can reduce the risk, you can never remove it.
That being said, if you don’t perform regular maintenance, and it’s found that you’re neglectful in the care of the property, specific insurance policies might not cover you. So always check what your responsibilities are when taking out any property owners liability cover.
What does property owners liability insurance protect you from?
When you take out a property owners liability insurance policy, you can be sure that you are protected from claims made by third parties who have been injured as a result of an injury on your property. This includes defending your interests when fault is in doubt. Should your property be at found at fault, then you are also protected from the financial burdens of the compensation claim.
The level of insurance you need will depend on the building and its use. Those open to the public might need more cover than those used as a private dwelling. You should also seek to have a policy should your property be vacant. People can still gain unauthorised access to your property and it is still your responsibility should they have an accident on the property.
What does property owners liability insurance not protect you from?
While property owners liability insurance is good value for money, it doesn’t generally protect you from the actions of third parties. For instance, if a third party damages your property or perhaps a tenant doesn’t pay their rent. There are other policies for this which you might need to use.
The best option is to speak to an insurance broker. They are legally obliged to advise you on what insurance policies you need to protect your interests. Insurance companies are not under that obligation.
So, if you would like to speak to someone about your property owners liability insurance, then call Arkwright now.