Landlord Insurance - Are you properly covered?

The average rental property is worth a bob or two these days. Since starting REB Letting back in 2002 we have let well in excess of £100 Million pounds worth of property with annual rental income in excess of £5 Million. We also manage property worth an estimated £15 Million. It’s amazing how it stacks up even in North Wales.

The question is, how much of this is insured correctly?  I bet that there are hundreds of properties under insured or even not insured at all because a landlord has not bought the correct cover for renting. What about rent guarantee & legal expenses insurance? Where would you stand financially if the tenant could not pay the rent?

Essential Cover – Building & Contents

This should be pretty straight forward in most cases, but should be given good consideration to ensure that the cover is really up to the job. Unfortunately you cannot assume that all insurance is the same. The standard house policy is unlikely to provide cover for renting at all – so landlords beware, even if renting to a friend you should check with the insurer that they do cover the risk.

You should also make sure that the insurance covers your legal responsibilities as a landlord. Alternative housing for the tenant in the event the house become uninhabitable, third party liability to both tenant and guests, accidental damage (or even malicious damage) by the tenant should all be part of the belt and braces approach to protecting your investment.

Essential Cover – Rent & Legal

This is an insurance cover that is often overlooked by most landlords. I confess that in the past I have rarely ever taken out policies for my own properties, trusting my judgement when picking tenants and relying on the references provided.  These days I am a lot more cautious and have cover on every new tenancy.

This is not a reflection on the tenant themselves in any way at all.  This is due to the overall financial climate. Even the world’s best tenant can lose a job. Think of any serious issue that could affect the tenant’s finances and this could become a serious issue for the landlord.

The real problem is the “support network” such as housing benefit and income support etc is next to useless. This means that the tenant suddenly having to rely on this could find paying the rent very difficult indeed. The support network will also try and keep the tenant in your property as long as possible. The worst case scenario would be many months of no rental income topped off with a large solicitors bill for the eviction process.

Avoid all of this with a Rent & Legal insurance policy.

Click here to go to our Insurance page for information & online quotes

Please note, whilst we strongly advise all landlords and tenants to have adequate insurance, we are not authorised to give advice on individual insurance policies. You should seek independent advice from an insurance company or agent. Our online quoting system links to third party agents who are fully responsible for their own content and information.

.