Landlord Insurance

What is Landlord Insurance?

If you want to rent out your private property, or are looking to develop your property portfolio, chances are there is a lot of money held up in that property. You will, therefore, want that extra security for your investment. Though it is not a legal requirement to have insurance, standard buildings and contents covers may not offer the level of protection you need. This means that your insurer may refuse to pay out in case you file a claim. And, in case your property has a buy-to-let mortgage, some lenders may want you to at least have landlord buildings insurance.

It is recommended that you buy a policy that is specifically designed for landlords. A typical home buildings or contents insurance policy will not consider the possible risks faced by landlords such as accommodation expenses and loss of rent, should your tenants be forced to move out following an insured event. The standard policy will not even cater for your liability as the landlord.

What is covered under landlord insurance?

The residential rental property; duplex, triplex, quad, and single family

Any other structure on the property like garages, sheds, etc.

Items on your premises such as washers, dryers, and microwaves being used by tenants- even your repair tools.

What are the different coverage options under landlord insurance?

Your investment property has specific insurance needs unique to your situation. The different coverage options at your disposal include:

Personal Injury Protection: This will cater for claims made against you for damages resulting from slander, libel, invasion of privacy, wrongful entry or illegal eviction.

Liability: In case there is a claim against you for accidental destruction arising from your investment property, liability policy will cover those claims and pay for the claims that you are legally responsible for, up to your policy limit.

Fair Rental Value Coverage: In case your property is rendered unlivable due to an insured loss, the insurer will pay for the income lost since your tenants will not be paying you to rent anymore.

As a landlord, you need a particular kind of insurance to cover the properties that you rent out.