What is landlord insurance?
Posted June 29th 2023
As the name suggests, landlord insurance is a type of insurance specifically for rental properties to protect you as the property owner. It can cover the building and contents, as well as unpaid rent and any claims tenants may make against you.
Am I legally required to get landlord insurance?
No, there is no legal requirement for landlords to have landlord insurance. If you’re applying for a Buy to let mortgage then it’s likely that your mortgage lender will require some form of building insurance. Regardless, landlord insurance covers a much broader range of things than a generic building insurance, and it’s highly recommended that you get it.
What does landlord insurance cover?
This depends on what type of insurance you have. Different insurers will often different things as standard or add-ons. These can include:
Unpaid rent
If for some reason your tenant defaults on their rental payments, landlord insurance can offer a layer of protection and cover the loss in income. This is also the case if your property is made uninhabitable by disasters like flooding, fire or storm damage. How much rent this will cover and under what circumstances will depend on the policy.
Buildings and contents damage
Contents includes household items like furniture and appliances that you bought, but not belongings owned by your tenant. If you already had buildings insurance then you will need to check with your provider that it’s still valid, though it’s likely that you’ll need to take out a specific landlord policy.
Injury and property damage
Known as ‘landlord liability insurance’, this covers landlords against compensation claims by tenants, visitors or tradespeople who may get injured in or damage your property. This covers legal fees and compensation costs up to the policy level limit.
Does landlord insurance cover multiple properties?
Generally, a policy will only cover one property at a time, but some insurers will offer discounts for insuring multiple properties on one portfolio.
If you're interested in getting landlord insurance, contact one of our First2Protect advisors for more information.
Landlord Insurance services are referred to First2Protect, JNP do not provide advice is this area.
The information contained within was correct at the time of publication but is subject to change.
