Landlord insurance UK

Landlords have always had special requirements compared to other homeowners and this is reflected with specialist landlord insurance policies.

Landlords Insurance Overview

There are many different types of Landlord. From the individual who is renting out their second home to the ambitious property tycoon with an ever-increasing portfolio of trendy dockside apartments. The common theme for all landlords is the need to purchase landlords insurance to protect their investment.

As a landlord, you are effectively using your property as an extra source of income – and this needs to be protected. A normal home insurance policy is not valid when you are taking an income from the property. A residential landlord policy is what is required.

With the correct landlords insurance policy in place, you can relax knowing that should any damage be caused to the property you are protected against the financial consequences. With this peace of mind in place, you can worry about running your property and nothing else.

Examples of claims which Landlord’s Insurance covers you for:

Landlord’s insurance would pay you should the following happen:

• Your property is massively damaged by a fire. Luckily your tenants are not hurt but they have to move out as the damage is so bad. It takes builders and decorators 3 months to repair the damage. Your landlord’s insurance policy would not only pay for all of the work to repair the property but also pay you the rent that you are missing out on by not having tenants living in the property during this period.
• You fall out with your tenants. They stop paying the rent and refuse to leave the property. You are forced to take them to court to get them evicted and collect rent owed to you. If you have purchased the “Legal Expenses” cover as part of your Landlord’s insurance policy then all of your costs accrued in fighting the court case would be compensated.

Frequently Asked Questions

What is the Buildings Sum Insured (BSI)?
You are always asked to give an estimate for the Buildings Sum Insured (BSI) when going through the process of getting a Landlord’s Insurance quotation. This is an estimate of the cost for rebuilding your property should it be completely destroyed. Do not confuse this with the value of the property (which is normally much more – especially in prime city-centre locations) otherwise you will be paying more than is necessary for your insurance. On the other hand, do not be tempted to deliberately understate the BSI since should it come to making a claim the insurers will reduce the amount that they pay you in proportion to the amount you have underestimated.

Why am I not already covered under my normal home insurance?
Home insurance policies will not pay when the property is being used to make an income (for example when you are renting your property to tenants). You must therefore buy a Landlord’s Insurance policy which is especially designed and rated for these circumstances.

I have several properties, do I need to buy one policy per property?
No, you can buy one policy which covers as many properties as you have.

How do insurers calculate the premium for Landlord’s Insurance?
Different insurers use different ways of assessing the risk of your property and therefore how much to charge you. Some of the major factors are:

• The location of the property (postcode)
• The Buildings Sum Insured
• The type of tenants in the property
• A history of claims
• The age of the property
• The type of property (flat, detached, terraced etc)

Instant Landlord Insurance Quotes

The following is an example of the kind of policy that some insurers offer, and is published here to illustrate what you should expect

Sample Buildings The property, including outbuildings and fitted interior units, covered on the basis of full replacement or repair costs, subject to policy excesses, against loss or damage caused by: Fire Theft Vandalism/malicious damage Lightning Oil or water leakage Smoke Storm (other than gates and fences) Subsidence Burst pipes Impact from vehicles, falling trees, animals, aircraft, aerials and masts Civil commotion Earthquake Contents This is not a stand alone cover and is only available as an additional section to a buildings policy. Whenever you rent or lease your property you can cover your contents on this policy, against fire and theft. This will include cover for furniture, household utensils, kitchen electrical goods and soft furnishings. Summary of Pricipal Exclusions First £150 of any claim, both for Buildings and Contents increased to: £250 for malicious damage and theft in limited postcode areas only. £1,000 of any claim for subsidence, landslip or heave. £500 of any claim for escape of water (e.g. burst pipes). £500 if you have DSS Tenants and your property is unoccupied. All water tanks and pipes must be properly lagged and roof areas fully and adequately insulated. If the property was built prior to 1970 the electrical system must have been tested by the local Electricity Board (or NICEIC registered electrician) in the last 5 years. Ensure that any connected gas appliance is checked annually by British Gas or by a registered Corgi installer. All necessary internal and external repairs to the building must have been carried out prior to taking out the policy, unless a detailed inventory is provided recording any pre-existing but un-repaired damage, such as cracked sinks and baths. Properties used for holiday letting purposes. Properties unoccupied for more than 90 days. If you have DSS Tenants and the Buildings are Unoccupied for any reason You or Your agent must inspect the Buildings at least every 14 days to make sure that: the gas and electricity supply is turned off at the mains; the water supply is turned off at the mains and the system drained (unless adequate level of heating is maintainted from fixed heating appliances); all outside doors are securely locked; all ground floor and accessible upper floor windows are securely fastened and any broken windows boarded up; the Buildings and all yards and areas surrounding the Buildings are free from fuel and waste materials. You will be responsible for the first £500 of each and every claim. Important Over 6 properties If you own more than 6 properties we are able to provide particularly competitive premiums on a group policy basis. Split lets (student/non student/dss) If your tenants are split between students, non students and dss in any one property you can still be easily covered. Simply indicate on the proposal form the category into which the majority of your tenants fall - the premiums are the same for all categories. We also provide possessions insurance for students and young professional occupants.

Buy to Let Insurance

Landlord Insurance is commonly also known as buy to let insurance. The cover available under a buy to let insurance policy is the same as a landlord insurance policy. You can get cover for your property, contents and landlords liability insurance. You will also be able to get insurance for a portfolio of properties as well as a singular property.

Posted February 9, 2006