The Key Points of Landlord Insurance

Having the right kind of insurance is a vital part of being a landlord, and it is essential that you get it right. It is also important that you get a good price; insurance can be expensive, and you want to ensure that you are maximising your return on investment.

Cover

There are several different aspects to landlord insurance, some of which are essential, and others optional. You need to look out for these when getting quotes for your policy, to ensure that you’re getting what you need.

Buildings insurance is compulsory, and is what ensures you aren’t left significantly out of pocket in the event of an accident. Firstly, events such as a fire or flooding will be covered, in that you will be reimbursed for the cost of repairs to the property. You can also claim for a portion of the loss of earnings incurred by your tenants not paying rent as a result of having to move out of the building – dependent on the policy terms and conditions.

Public liability is also essential. As being a landlord is a business, you are required to cover yourself against any damage to a third party that could occur. This may be for instance, when roofing is damaged and falls onto someone.

Contents insurance is an optional part of having landlord insurance. This covers all of your belongings that are inside the property, which could be damaged in a fire or other circumstances. However, it is important to check the terms of the policy to check what this includes before buying. Tenants items are not covered within this; they require their own contents insurance.

The Premium

Insurance can be costly, which is why it is always a good idea to know what can affect the price. There are of course a variety of different factors that insurers take into account.

One of the major influences is the property’s location, which goes by postcode. There can be many reasons that one location is considered riskier than another. The value of the amount insured is also critical for obvious reasons – the more the insurer might have to pay out, the more the initial fee will be. The age and type of building also forms part of this. Some might be more prone to damage than others, and might be more likely to need more repairs, or accidents will be more expensive to put right.

The tenants themselves can sometimes impact the cost of insurance, as they might be more or less likely to be the cause of an accident.

If you’ve made claims before, this could certainly contribute to an increase in the cost of landlord insurance, but by the same token, if you haven’t made many claims, then you might find that you’re offered a lower premium.

To conclude, it’s essential that you get the right level of cover for what you need. It’s always a good idea to be covered as comprehensively possible. If you do your research and shop around, then you are more likely to find a good value quote. A broker such as www.towergateinsurance.co.uk could be ideal – they will search a panel of insurers and find the best deal for you.