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Why Landlords Need Good Insurance

  • 5 years ago

If you’re planning to rent out your property, then one of the main priorities (aside from finding good tenants, of course) is to get good insurance that’s specially designed for landlords.

No business, from mining quartz to letting out a property, is 100% risk-free. Even with tenants who come with good references and who look great in theory, there’s the chance that they could suddenly stop paying. Or, they could always pay on time but cause serious damage to the property by accident. Burglars could break in, a frozen pipe could burst, there could be a flood or the boiler could pack in.

It’s for these reasons that you need to have good, responsive and comprehensive insurance. It’s not just for you, it’s peace of mind for your tenants as well.

What’s wrong with regular insurance?

Nothing at all, if you’re a regular householder. When you’re a landlord, however, you’ll probably invalidate your “regular” buildings and contents insurance if you’re renting the property out to tenants.

Landlord insurance policies vary a bit in their offerings and conditions, but they’re pretty consistent at their core. They offer liability cover, protection if your tenants are injured, employer liability and also cover for loss of rental income. You should shop around and take advice about the various add-ons and extras that suit your particular needs, but as long as your policy has the basics, you’re all good.

Landlord insurance is good for first-timers

If you’re new to the game, then buying the best landlord insurance you can afford is always a good idea as this will remove a lot of the stress and worry. Once you get used to managing tenants, spotting potential future problems and dealing with letting agencies, you can maybe drop or reduce an add-on or two.

A good example is starting off with your own contents insurance add-on. If there’s a flood or a fire, then you may be liable for the tenants’ possessions. When you start off, you might not be confident enough to ask tenants to buy their own contents cover, but as time goes on, you’ll be able to ask this without even blinking.

Always look for emergency cover

The law of emergencies is that they always happen at the most inconvenient time. Emergency cover will make sure the repairs are carried out as soon as humanly possible and by fully-qualified tradespeople. This sort of insurance should cover labour, parts and call-out fees (up to a specified amount).

If you’re a bit bewildered by the policies on offer, then your letting agent should be able to guide you in the right direction and will probably have a preferred provider, so talk to them before settling on a policy.

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