What sort of insurance do I need to take out on my rented property?
There are a number of things you need to think about protecting when you're the landlord of a property- including the physical bricks and mortar of the property. It is thought that approximately 1 in 4 landlords do not have the right type of insurance on the properties they rent, opting for a standard home insurance deal rather than going for a landlord specific policy.
Mortgaged properties require buildings insurance as a condition of the agreement but increasing numbers of landlords now rent out properties that are mortgage-free - it is thought that these are the ones which most commonly overlook the need for insurance.
In the event of a landlord needing to make a claim it is unlikely the policy would pay out if the property was tenanted without a specific rental property insurance in place. Many companies now specialise in these sort of insurance policies, available with varying levels of cover including landlord liability, accidental damage etc. Many of these policies will also come with a home cover package that will assist your tenants should there be any maintenance problems with the property.
When purchasing a landlord insurance policy you will need to work out which elements apply to you and your property and the amount of cover that you need. If you let your property out unfurnished then it is unlikely you will need to take out insurance on any contents of the property. It is not uncommon for it to be a condition of the tenancy agreement that tenants take out tenant liability insurance which would cover them in the event of accidental damage to your fixtures and fittings i.e if they stain the carpet. It is also recommended that tenants take out contents insurance for their own belongings.
3rd July 2015
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