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What is Landlord Insurance And How Does It Work

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While investing in a property for rental purposes is a great long term investment, you need to remember the problems and expenses that come along the way. Many things can go wrong with a property, whether you live in it or not. From fire damage and burst pipes to vandalism and theft, the cost of these major or minor repairs may stack up. However, if you purchase landlord insurance, it will protect you from all the risks at your rental properties. It will not only help you to fix the problems but also provide you with a financial cover against legal and repair costs. Moreover, if you want your property to be safe, you can add in the lease that it is essential for tenants to get tenant insurance when renting your property.

In order to get benefit from landlord insurance, it is vital to understand it. To help you out, we are providing you with information about what is landlord insurance and how it works. 

What Is Landlord Insurance?

Landlord insurance is an insurance product that is designed for people who own investment properties. It is different from home insurance as it protects you from the risks that come with renting out a property. It has three main types, including building, liability, and content insurance. Other than that, you can find some useful add-ons depending on the requirements of the property you are renting. Usually, you need to take out insurance on a property by property basis, but there are portfolio policies available through which you can ensure all your rented homes at the same time. Many insurance providers are offering landlord insurance in the UK, and you can choose one that is offering competitive price and maximum coverage.

What Does Landlord Insurance Cover? 

A standard landlord insurance policy can cover you in different situations, including the following:

Personal Property Coverage

It usually covers any damage caused by earthquakes, lightning, fire, flood, explosion or riots. You may need to add on extras if you want protection against theft and vandalism. 

Content Insurance

It covers any damage to your personal possessions, including furniture, white goods, fixtures and fittings. It will either cover the cost of repair or replace the damaged things. 

Property Owner’s Liability

If your tenant sustained an injury at your property and you may be found liable as a landlord. This liability means that you have to pay compensation costs if they make a claim. Landlord insurance covers you for this compensation cost when a tenant makes a legal claim against you.  

Accidental Damage

It covers the cost of damage that is caused by tenants to your property unintentionally. 

Alternative Accommodation

In case of any disaster that causes damage to your property and makes it unlivable for tenants. You have to pay the cost for their alternative accommodation until your property is repaired. Landlord insurance also covers this cost.

Loss Of Rental Income 

If any damage caused by a disaster makes your home unfit for rental purposes, landlord insurance can reimburse you for the loss of rental income based on the limits of your policy.  

Malicious Damage 

If your tenants cause intentional damage to your property with landlord insurance, you are all covered.

How Does Landlord Insurance Work?

Landlord insurance works more or less in the same way as other insurance policies. When you purchase a policy from your trusted provider, you can make a claim in case of any damage to get the repair cost. You can make a claim by following the steps below:

  • Call at the number your insurer provided you in the documents to make a claim.

  • Explain why you want to make a claim and tell your insurance policy number. 

  • Follow the advice that your insurance providers give you to mitigate the damage and pay your excess.

  • Send the required documents and estimated repair cost to the insurer.

  • You may need to meet the assessor that your insurer sends to your property for a visit and collect details of the damage.  

Landlord insurance is beneficial for property owners to protect themselves in case of unforeseen or accidental circumstances.

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