Category Archives: Landlord Insurance

Why may landlords insurances be important to you?

Why might landlords insurances be important to you as a landlord?

Here are a few powerful reasons:

  • comparatively few people may be inclined to put at risk the huge capital investment they have in a property, by failing to insure its bricks and mortar and/or where appropriate, its contents;
  • once you commence obtaining income from the property, then you typically no longer have the option of covering it with standard owner-occupier insurance protection, due to the changing nature of the risks that it faces in certain areas;
  • landlords insurances exist to provide such protection for buildings and their contents in a situation where they are being let out for income generation purposes;
  • although attempting to compare owner-occupier and landlord insurance may not be terribly meaningful given the fact they are fundamentally different products, some landlords may be tempted to make do with owner-occupier home buildings and contents insurance in the belief that an insurance provider will never know that they are obtaining income from the property – that may prove to be a serious mistake leaving them liable to have claims refused and in some cases, possibly in danger of committing a prosecutable offence;
  • let property insurance may encompass a number of different options but a standard policy typically will not provide cover for a property that has stood unoccupied for more than approximately 30 consecutive days – in such circumstances, you may need unoccupied property insurance;
  • although it may be a painful realisation, as a landlord you may be exposed to a number of risks that are simply not applicable to the typical owner-occupier (e.g. tenants suing you for third party injury claims) and you may consider it important to have insurance that may cover such circumstances should they arise;
  • if you took out a buy to let mortgage, the conditions of your loan agreement may commit you to having insurance protection for your property up to and including its full restoration value, therefore, you may be legally obliged to ensure that you have suitable insurance protection for landlords;
  • all things being considered, you may conclude that landlords insurances are less of a nice-to-have and more of an essential necessity.

Making a landlord insurance comparison

Making a landlord insurance comparison is likely to involve similar choices to those you make when comparing other forms of insurance, namely:

  • do the policies you are comparing offer the cover you need at a competitive rate;
  • do they include every aspect of landlords protection you might need, yet also exclude elements you are unlikely to need (and therefore have no reason to pay for);
  • your landlord insurance comparison might also take into account those elements of any given policy that are included as standard features;
  • if there is cover you need to buy as an additional option, of course, this might increase the overall cost of your insurance;
  • an example might be compensation offered by an insurer for loss of rental income following an insured event which leaves your property unable to be let for a while. Some policies – but by no means all – provide a degree of compensation (up to prescribed limits) for such loss of rental income;
  • perhaps more important – and a potentially more serious and costly risk – relates to the building insurance on your property and the peril of subsidence. Some landlord insurance policies (just as some home buildings and contents insurance policies for private residences) specifically exclude this risk and you may need to buy it as an add-on. Some landlord policies, however, include it as a standard item of cover;
  • if you own buy to let property – or, indeed, if you are an owner-occupier – there may be occasions when the premises are left empty and unoccupied. Your tenants may have vacated, for example, and you face a delay of more than 30 days (45 days in some cases) in agreeing a new tenancy. In that case you may also be looking for an unoccupied insurance quote to ensure that adequate cover remains on your property during the time that it is empty;
  • as a landlord, you may face the risk of tenants causing malicious damage to your property or the contents which you own. Some buy to let insurance policies include protection against such risks as a standard feature, whilst others may offer it as an additional option (at additional cost);
  • if price is a consideration in making your landlord insurance comparison, you might wish to choose a policy which offers a wide range of options with respect to any voluntary excess you may care to bear. Typically, the higher the excess you take on, then in some cases, the lower the premiums you have to pay.

An outline of a typical unoccupied property insurance quote

Here is a quick summary of some of the major points relating to an unoccupied property insurance quote:

  • why you may need it – the risk profile of your property may typically be seen to be significantly different between the states of being occupied and unoccupied with the latter exposing it to additional risks of cumulative unnoticed damage, burglary and vandalism etc;
  • when you may need it – there may be some differences between insurers but typically traditional home buildings and insurance or landlords insurance policies will cover an unoccupied property for a maximum of 30 consecutive days, after which standard landlords insurance may become invalid and continuity of cover may be maintained by starting with an unoccupied property insurance quote;
  • what it entails – a policy may typically offer you cover for your buildings and contents in a situation where your property is unoccupied but some policies may have different conditions that apply once the period passes a further threshold (perhaps 3 6, 9 or 12 months);
  • your obligations – it is always a good idea to carefully read the terms and conditions of any insurance document and in the case of unoccupied property cover, you may wish to note that you may be obliged to periodically visit the property to perform inspections, rectify immediately any internal defects that may lead to damage and to keep external garden areas in appropriate lived-in appearance (you may also find an obligation to ensure that you keep a journal of the days you visited the property and any work undertaken);
  • its necessity – keep in mind that if you make a claim under a standard landlords insurance policy and the insurer subsequently discovers that the property was unoccupied at the time the incident took place, you may find your claim will be refused and you may also become involved in fraudulent claim proceedings;
  • its ease – you may find it is very straightforward to pick up an unoccupied property insurance quote and that it is time well spent.

The key concepts of insurance for landlords

There are a few key ideas arising in the area of insurance for landlords that may be worth getting to grips with if you are or are about to become, a landlord:

  • if you obtain income from letting out property or part of your own property, then you are a landlord;
  • properties that are being used for the purposes of generating income typically cannot be covered by owner-occupier buildings and contents insurance;
  • it may be possible to use only buildings insurance in situations where your property is being let on an unfurnished basis, however, it might be prudent to check to make sure that everything you believe to be a fitting (thereby theoretically covered by the buildings insurance) is also so seen by the insurer;
  • to decide what is the best landlord insurance for you, may require a little effort in terms of comparing a number of quotations – remembering that something that you have heard is the best, may be the best for another landlord but might not prove to be so for you;
  • some landlords insurance may offer considerably more than simply buildings and contents cover, for example, some policies may include things such as rental income protection, malicious damage by tenants and elements of legal fees protection (qualifying conditions may, as you would expect, apply in all cases);
  • landlord insurance (and the same may also be true for owner-occupier home buildings and contents insurance cover) may not cover a property that remains unoccupied for more than a specified number of days and if you believe your property may exceed the specified limit, you may wish to make inquiries regarding unoccupied property insurance;
  • in cases where you have taken out a buy to let mortgage, you may wish to note that your mortgage agreement may require you to maintain appropriate insurance in place, at all times, covering the full rebuilding costs of the property concerned – in effect, that may necessitate you having formal insurance for landlords unless you wish to risk being in breach of your mortgage contract.

Looking for an unoccupied property insurance quote?

There may be a number of reasons why you are looking for an unoccupied property insurance quote:

Some reasons

  • the home you live in, or let out to tenants, might be undergoing extensive refurbishment and you are temporarily living elsewhere;
  • the property is on the market, in the process of being sold;
  • if you are a buy to let landlord, there may be a longer than usual interval between a changeover of tenancies;

The need

  • whatever your particular reasons, however, you are likely to be looking for an unoccupied property insurance quote because this is the special type of cover you need if the building is left vacant;
  • a dwelling that is left unoccupied is exposed to significantly higher risk than when there is someone at home. Empty buildings tend to be magnets for thieves and vandals, whilst the need for repairs and maintenance runs the risk of going unnoticed. For that reason, many standard home insurance policies, including buy to let home insurance plans, explicitly exclude cover, or elements of cover, when the building is left vacant;
  • whilst insurers’ definitions of exactly when the property becomes unoccupied may vary, but typically this is when it has been empty for longer than 30 or 45 days;
  • if this is likely to be the case with property which you own, therefore, you may wish to give serious consideration to unoccupied buildings insurance in order to ensure that sufficient protection is maintained;

Mitigating the risks

  • when considering an unoccupied property insurance quote, you may notice that many insurers typically expect you to help mitigate the risks to which a vacant dwelling is exposed and there are a number of ways in which you might help to do this:
  • regular inspections – by you or an appointed agent – for example, might help to spot problems and carry out necessary repairs and maintenance before serious damage is caused;
  • a record of those surveys, together with notes of the maintenance work and repairs carried out might need to be submitted to your insurer at regular intervals;
  • by draining down water and central heating systems, you might additionally reduce some of the risks of flooding and leakage from burst or fractured pipe work;

Let property insurance – commonly asked questions

The following questions are frequently asked with respect to let property insurance.

Is it required if I have a flat in a larger block?

Typically, yes, it is.

Just as if you were an owner-occupier in a flat or apartment, it may be advisable to have buildings and contents insurance for your property.

In some cases there may be common shared elements of insurance across a split property, nevertheless, if you are using your property for the purposes of income then you will need to ensure that your own cover (and any shared cover components) explicitly covers landlord properties.

What about if I only rent out my property for a few weeks per year?

It may be advisable to read your own policy for certainty, however; typically any use of your property for commercial purposes (including rental income generation) may require let property insurance in order to ensure that your buildings and contents insurance protection remains effective.

Supposing I am only renting out a couple of rooms and still occupy the property as my own residence?

Typically, such a situation may make no difference – though again, it may be useful to consult your policy to be sure.

Ordinary owner-occupier home buildings and contents insurance may be put at risk if you start to rent out sections of your own home.

Does landlords buildings insurance cover me for subsidence?

Some policies may do so but this is no longer something that you can assume to be a given, as may have been the case in previous decades.

Given the potentially catastrophic costs of rectifying a subsidence problem, it might be a good idea to search for landlords cover that does provide protection in these circumstances.

Will buy to let insurance cover unpaid rent arrears if tenants abscond?

That may be rather unlikely. Classic landlord insurance may also not cover you if you become embroiled in a legal battle trying to force eviction.

On the plus side, some let property insurance policies may cover you for wilful damage caused by tenants etc. The cover may also extend to third party liability damages awarded against you by a court.

When you might need an unoccupied property insurance quote

If your home, or a dwelling you have bought to let, is going to be vacant for longer than a short period of time, you may need to consider getting an unoccupied property insurance quote.

Why?

When any building is left standing empty, it is likely to be vulnerable to considerably more risks and perils than when it is occupied either by its owners or by tenants. For this reason, many insurers of both owner-occupied and tenanted premises significantly reduce the scope and level of cover – or even invalidate cover altogether – after the building has been unoccupied for a given period of time.

When?

Although that given period of time may vary from one insurer to another, it might typically be as short as 30 days or one month.

Who?

If you seek an online quote, landlords insurance applications may or may not specifically refer to the need for special cover during those times when your let property is vacant. This may be because of the relatively frequency with which homes bought for let fall vacant – either through delays between one tenant leaving and a new one arriving or because the letting is undergoing redecoration, maintenance or refurbishment.

However, there may be equally numerous reasons for other types of residence to be unoccupied for similar periods of time (during which standard home building and contents insurance may be similarly affected).

You might wish to seek an unoccupied property insurance quote, for instance, if:

  • your job takes you out of the area and away from home for several months at a time;
  • your home is on the market to be sold and you have already moved into your new home;
  • the property is awaiting probate before a decision is made about its disposal;
  • the builders are in for major refurbishment or re-modelling; or
  • the property is a second or holiday home, left empty for more than a month at a time.

Therefore, whether you live in the property you own, use it as a holiday or second home, or let it out to tenants, you may wish to give serious consideration to seeking a specialist unoccupied property insurance quote.

Landlord Insurance Cover

Gone are the day’s when being a land lord meant only huge income, in today’s society being a landlord comes with a lot of responsibility. If you are a landlord who is planning to use your property for a second source of income then you need to think about landlord insurance cover. The reason is fairly simple you do not want to be one of the unfortunate landlords who did not invest in a good insurance policy, and then they end up paying for the damage to the property either by tenants or due to other reason. This is the very reason why you should learn about landlord insurance cover.

In this article we are gone discuss about various types of landlord insurance available and how can one get a cheap policy. For starters one should know that the term landlord insurance involves many policies. The most basic policy is the property insurance policy. This policy will provide coverage if the property is damaged by tenant or due to other factors during the time when you had given your property for rent. The other type of policy which most landlords prefer is the rent default policy. Imagine if the tenant has defaulted the rent and you and the tenant are locked in a legal battle, the loss which occurs is for you the most. In such cases this policy will provide you a predetermined amount of money monthly for a specified duration of time. The third policy which is preferable if you are not planning to be sued is the liability policy. Now this here is a unique policy, imagine if the tenant staying at your property is injured due to some defect in your property. They it is for sure you will end up in a soup and have to face law suit. In order to prevent such things from happening this policy provides coverage if third party is injured while staying in your property.

Now coming to the part on how to find a cheap policy? The best place to find a cheap landlord insurance cover is the internet. No matter where you search it is absolutely sure that you won’t be able to get the amount of information you get when you search for it online. There are hundreds of websites which deal with this type of policy all you got to do is to log on to these sites and start providing the needed data and you can go through the policies which suit your needs.

Angella Brown is an expert author on various interesting topics. To know more about the various policies why not compare landlord insurance cover yourself, from a range of top providers. For more in-depth analysis of insurance feel free to visit us at Landlord Buddy Insurance

Landlord Insurance Simply Makes Good Business Sense

Landlord insurance is a necessity to protect the valuable investment of commercial or residential property.  Those who choose not to face each day with that type of protection, risk more than just losing income today, but are risking a secure future of any kind with that property.  Landlord-insurance provides a blanket of security against minor damage all the way to catastrophic events.  To say the future can be predicted is a major mistake in regard to protecting the value of property.  Damage is going to occur.  Tenants will abandon the property without completely paying for everything they owe.  Protect yourself.  Do not leave the future to chance.  Purchase landlord cover and face the future with a blanket of security.

A popular concern for many landlords is making sure they have enough insurance cover to protect the value of their investments.  When purchasing landlord-insurance, make certain to note any property inside residential or commercial structures which has value.  This will ensure that any damage which occurs to the property inside or outside the property is covered.  The important time is including the items in the official insurance document before signing on the bottom line and the insurance cover is officially in effect.

There are several things which can be done as a landlord to protect valuable property on the inside or outside of a structure.  For starters, deadlocks can be installed on the doors and key locks can be installed on windows.  Alarm systems can also be installed to deter burglars from entering the structure.  Smoke detectors and a working fire extinguisher are other ways to protect the valuable within the structure.  Mentioning these extra steps, which protect the valuable property on the inside of the structure, make it possible to receive discounts on monthly insurance premiums.

Keep in mind, carrying landlords-insurance is not a law.  It simply makes good sense.  For the biggest investment that most people make over the course of a lifetime, landlord-insurance is a wise purchase.  Making sure the insurance plan covers what is most valuable should be a goal before you get started.  Going over the cover with a fine tooth comb before committing to anything is the wisest thing to do.

If, after a final review of the landlord insurance policy, something is not worded just so, question it.  Remember, a contract is a legally binding document.  Whatever is agreed to and ultimately signed, is what sticks for good.  Landord insurance is a valuable way to protect what is returning income back to you now, and into the future.

Top Tips for finding the best let property insurance quotes

When looking for a let property insurance quote, the job at first may seem quite daunting. There are many companies who offer let propety insurance, and as a result you may find yourself at the bottom of a pile of policies and quotes. Well just as with any product, finding the best let-property insurance quote isn’t that difficult, if you know how.

Here are a few points below which should help you in your quest for the most appropriate insurance deal.

  • first and foremost, the thing to remember is that you are not looking for the cheapest quote; you are looking for the quote which gives you the landlords cover you need. The cheapest buy to let-insurance isn’t necessarily always the most suitable – it’s the quality of the policy which may be important to you;
  • as the internet gives us access to many companies, we have been given the ability to compare prices like never before, but when looking for landlord-insurance, it may be a smart move to compare the cover offered by the landlords-insurance policies first, and then look at the prices;
  • as with all insurance policies, it may be a good idea to read through the small print before you sign up and see if any discounts may be available too. Some companies may offer, for example, flexibility on the amount of voluntary excess that a client chooses to pay. Often it is the case that when you opt to pay a higher amount of excess the total cost of the policy may be reduced. But again it’s what works best for you;
  • loss of rent cover due to an insured event. Not all policies include this as standard, so it may make sense to check before you buy your landlords cover;
  • replacement locks may be something which seems trivial but is often very expensive to repair, and it is also a situation which some landlords may find themselves in at some point.

This cover is often not included as standard in some landlords policies.

Insurance is a personal thing, and it may make sense to choose the cover that is suited to your personal situation. Cover does change between providers, and even the payout levels can be different, so always make sure you fully understand what is covered and up to what limit, and don’t be afraid to ask if you are not sure.

Landlord insurance may be important for anyone with a let property, and just as with regular home buildings and contents insurance, knowing that your property is safe, and insured against damage, means you can sleep peacefully. Getting what you think are the best let property insurance quotes means you are one step closer to getting appropriate cover and that all important peace of mind.