If you are a new landlord or considering buying a property for rental purposes, then it might be the best decision of your life. Having a rental property is a reliable steady source of income and you also enjoy benefits of tax relief. But where you see the benefits there is an important thing to consider. You are letting strangers in your property and you don’t have any idea about their work and source of income. You might be a lot busy to find new tenants for moving in, but the most important thing is to protect your property. Therefore, you need to get in touch with an insurance company for landlord insurance. I would recommend every landlord to first arrange proper coverage for their assets and then look for any potential resident.
What Is Landlord Insurance?
It is a simple insurance policy that covers the owner’s property from any kind of financial loss endured by the rental properties. You could get in touch with an Insurance Company London to give you the exact details of the coverage. A simple policy would protect the building and any other contents of the establishment which the owner has chosen to cover. If you think that your regular home insurance would be enough then you are mistaken. Home insurance does not provide coverage for rental activities. Therefore, for any rental property, you need to have landlord insurance.
Why A Landlord Needs Insurance?
Being a rental property owner, you not only have to consider the risk posed by tenants, but there are also natural calamities. These natural disasters such as earthquakes, floods, external fire or any other kind of accident can cause your property a lot of damage. You cannot expose yourself to such kind of property damages. Landlords have insurance policies that are specifically designed for them. as discussed earlier normal home insurance would not be enough. The main reason is they do not provide the necessary coverage. You are forced to pay for extra coverage. With standard landlord insurance, you would get all the basic covers. However, many customized policies have extra coverage that you could purchase for your property.
Types of Landlord Insurance
There are various types of landlord insurance available. The main difference between them is the type of coverage they are offering. Most of the Insurance Company London would provide you the basic coverage. But the policy would become expensive with customization of the coverage. Some types of landlord insurance are discussed ahead.
Being a landlord, it is your responsibility to insure your rental building or property. The building insurance would protect the structure of the building which includes walls roof and any other permanent piece that is attached to the kitchen or bathroom. It also provides cover from a range of risks that include storms, floods, explosions, and collapse. If you have a mortgage on your building, then the bank would force you to Insure your property before renting out. Irrespective of the bank restriction it is necessary that you cover your property from any kind of unfortunate event.
Owner Liability Insurance
This type of insurance provides coverage from any kind of damage that other people might face due to your building or property. For example, if a pipe falls off your building and damages someone’s car then you are financially covered with this insurance. Most of the policies are not tenant-specific and insure the first-time landlord so it doesn’t matter whom you rent out your property you are always covered.
Furnished Property Insurance
There are a lot of people that rent out furnished properties. The content of such properties is usually very expensive and in case of a fire or any unfortunate event, it would be a huge loss for the owner. Therefore, if you are a landlord renting out furnished houses then get insurance for all the contents of the property.
One of the best insurances providing company in the UK is cubit insurance. I am not making any claims you could decide for yourself by making a short visit.