Why mightbe 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 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.