What is the best landlord insurance for me?

Get a quote Retrieve a quote

Insurance can be confusing and landlord insurance cover is no exception – how do you work out which is the best landlord insurance cover for your needs? In our guide to landlord insurance cover, we give you an overview of the different features of landlord insurance so you can identify the best landlord insurance cover for you.

The best landlord insurance cover for you is much like many other insurance policies you might have come across, in that a range of different cover options are often offered under one policy; sometimes these are included as standard, but if you take additional cover options that are not included as standard, you will usually incur extra costs.

As a property owner you are more likely to need some of these cover options than others; it is a case of weighing up the risks and making an informed decision. But how do you decide which options you are most likely to need? Here we give you a rundown of the options you are most likely to come across so that you can decide what the best landlord insurance cover is for you.

It is also important to be aware that, while some landlord insurance policies might look similar to your home insurance policy, they are very different. Standard house insurance is not going to be effective for your property protection requirements as a landlord. A standard home buildings or contents policy won’t consider the potential risks that landlords face, such as loss of rent and accommodation costs, should your tenants have to move out after an insured event, or cover for your liability as a landlord.

 

What is the best landlord insurance cover for you?

Building insurance

Standard buildings insurance covers structural damage to the building caused by fire, flood and storm damage. As with home insurance policies, a mortgage lender will insist that building insurance cover is in place before finalising a loan.

When it comes to landlord building insurance however, landlord insurance policies differ dramatically as to what is included as standard. Some, like Hamilton Fraser Total Landlord Insurance’s Premier insurance, will include theft, accidental damage or malicious damage by tenants and / or guests as part of the package. Others will often exclude damage caused by tenants or persons legally on the premises, or offer these benefits at extra cost. When weighing up the risks, it is worth remembering that, as a landlord, whilst you need to invest trust in your tenants, you are ultimately handing over your most expensive asset to a stranger. Knowing you are covered for damage, be it by theft, accident or malice, is likely to bring you peace of mind.

Other areas to look out for under landlords buildings insurance are whether the policy offers cover between tenancies and if so for how long. Total Landlord Insurance’s premier policy offers full cover between tenancies for 90 days as standard under its buildings cover. This kind of benefit could make you considerable savings further down the line if your property is vacant for a period between tenancies.

Time spent checking precisely which covers are included under your buildings insurance when you are taking out a policy is likely to save you money in the future – if you have to pay extra for them your total premium is likely to escalate and if you need them but don’t have them then you will most certainly end up out of pocket.

Contents insurance

When it comes to contents insurance, it is important to note that your landlord contents insurance cover shouldn’t be confused with that of your tenant. Your tenant is responsible for the cover of their own possessions and to be on the safe side this should be clarified with the tenant.

If you let your property as “furnished”, your contents limit will inevitably be higher than if you let it “unfurnished.” This cover is not an essential, but basic contents insurance should cover accidental damage to glass and sanitary fittings as these would be expensive to replace.

More comprehensive, all-inclusive contents cover, will include malicious damage, theft and extend to gardening equipment. With more basic policies these will be added extras, subsequently incurring extra costs.

Loss of rent

If you are paying a mortgage on your rental property, or rely on it as a primary source of income, loss of rent cover is a sensible addition to your landlord’s insurance and may be included if you are considering a more comprehensive policy (as is the case with Total Landlord Insurance’s Premier insurance) Loss of rent cover allows you to meet monthly payments or revenue expectations if your property becomes uninhabitable for your tenants following a valid insurance claim. This could be the case if there were a fire or flood. Some loss of rent sections will also pay for alternative accommodation, so if this is important to you, it is worth looking out for when taking out cover.

Accidental damage

Your tenant may have their own insurance policy for accidental damage as it can help safeguard their deposit. Some buildings and contents insurance policies have accidental damage included as standard, offering varying degrees of cover, as is the case under the buildings component of Total Landlord Insurance’s premier policy. A foot through the ceiling scenario would come under buildings insurance, while a contents insurance policy would help you deal with something like the resulting damage to the carpet. If it is not included as standard, accidental damage can be offered as an added cover, for which you will be expected to pay a higher premium. If it is already included this saves you the hassle of weighing up the risks as to whether you might need it and any regrets if you decide not to take it and your tenant puts their foot through the ceiling! Find out why accidental cover is so important in our accidental damage article.

Liability cover

This is an essential feature of any landlord insurance policy, as it offers protection if a tenant or visitor is injured on your property. Depending on the type of property you have and who you let it to, liability insurance may even be mandatory. If it is not included as standard as part of your landlord insurance, liability cover is definitely one worth considering as a standalone product or an extra. Total Landlord Insurance’s premier policy includes both property owners’ liability and employers’ liability as standard.

Property disputes cover

Legal disputes such as eviction, criminal damage, and repossession can be associated with enormous stress and expense. Should you end up embroiled in a dispute you will be grateful for having cover as standard so this is something worth looking out for.

The overall package

The best landlord insurance policy for you is the one that fully accommodates your needs without costing the earth or being so complicated that you don’t really understand what you are covered for and what is excluded. The difficult part of the process is assessing your needs – after-all, you don’t know when you commit to a policy whether you will need that cover for accidental damage to your property by a tenant’s guest.

While some policies may initially seem cheap, it is worth checking whether you are covered for more than the basics. Adding on cover for malicious damage by tenants and their guests or extensive property disputes support can increase the price of your premium quite considerably if they are not included as standard. Total Landlord Insurance’s premier insurance package includes a wide selection of enhanced benefits as standard, combining peace of mind with comprehensive cover.

To find out which landlord insurance cover is best for you, get in touch with the team at Total Landlord Insurance by calling 0800 63 43 880 or emailing quotes@totallandlordinsurance.co.uk.

You may also be interested in:

Free Guide: How to avoid underinsurance
Free Guide: Allowing for accidental damage

Get a quote

Get a landlord insurance quote online in under 4 minutes

Building insurance

Standard buildings insurance covers structural damage to the building caused by fire, flood and storm damage. As with home insurance policies, a mortgage lender will insist that building insurance cover is in place before finalising a loan.

When it comes to landlord building insurance however, landlord insurance policies differ dramatically as to what is included as standard. Some, like Hamilton Fraser Total Landlord Insurance’s Premier insurance, will include theft, accidental damage or malicious damage by tenants and / or guests as part of the package.

Others will often exclude damage caused by tenants or persons legally on the premises, or offer these benefits at extra cost. When weighing up the risks, it is worth remembering that, as a landlord, whilst you need to invest trust in your tenants, you are ultimately handing over your most expensive asset to a stranger.

Knowing you are covered for damage, be it by theft, accident or malice, is likely to bring you peace of mind.

Other areas to look out for under landlords buildings insurance are whether the policy offers cover between tenancies and if so for how long. Total Landlord Insurance’s premier policy offers full cover between tenancies for 90 days as standard under its buildings cover. This kind of benefit could make you considerable savings further down the line if your property is vacant for a period between tenancies.

Time spent checking precisely which covers are included under your buildings insurance when you are taking out a policy is likely to save you money in the future – if you have to pay extra for them your total premium is likely to escalate and if you need them but don’t have them then you will most certainly end up out of pocket.

Contents insurance

When it comes to contents insurance, it is important to note that your landlord contents insurance cover shouldn’t be confused with that of your tenant. Your tenant is responsible for the cover of their own possessions and to be on the safe side this should be clarified with the tenant.

If you let your property as “furnished”, your contents limit will inevitably be higher than if you let it “unfurnished.”

This cover is not an essential, but basic contents insurance should cover accidental damage to glass and sanitary fittings as these would be expensive to replace.

More comprehensive, all-inclusive contents cover, will include malicious damage, theft and extend to gardening equipment. With more basic policies these will be added extras, subsequently incurring extra costs.