Deciding on what type of insurance is needed depends on who is living in a property and what that property is being used for. If you own the property and are living in the property yourself, then you will need Home Insurance to protect your belongings and assets. If you own the property but are renting it out and someone else is living there, then you will need Property Owners Insurance (otherwise known as landlord insurance). You will not need both for the same property.
Do I need landlord insurance?
With the increase in building costs, it has become even more important to protect yourself against the expenses of property repairs and damages in renting. Property Owners Insurance, also referred to as Landlord Insurance, financially protects you, your tenant, your employees, your earnings and your property. It is usually a quick and easy insurance to set-up with only a few quick questions to get an indication on price. Cover is available for both residential and commercial property, unoccupied properties, blocks of flats, single or multiple properties. Often further discounts are offered for insuring property portfolios.
What does landlord insurance cover?
Like Home Insurance, Property Owners Insurance protects you against material damage to your property under varying insurable perils, the main ones being Fire, Flood, Storm, Theft, Escape of Water and Accidental Damage. Increasingly in the UK we are experiencing adverse weather conditions and this has had a dramatic effect on the insurance industry and escalating claims costs. Alongside the material damage sections of cover, landlords will also be protected with Property Owners Liability and Alternative Accommodation or Loss of Rent cover.
What is property owners liability insurance?
Property Owners Liability protects the property owner against claims for accident or injury to a third-party person or property, that can be linked to their property. Alternative Accommodation or Loss of Rent financially protects the property owner for the financial loss they may occur following an insured peril (Fire, Flood, Storm), with a loss of a rental income or having to pay additional costs to house tenants in alternative accommodation.
Some property insurance claim examples…
Storm damage to roof tiles from wind – costs paid to repair roof
Burst pipes in block of flats with water damage to the flat below – costs paid to repair pipes and subsequent damage to flooring and ceiling of flat below
Accident Damage to a carpet with the burn from hair straighteners
Fire – costs paid to replace damaged items and the cleaning up of smoke damage. Costs also paid to house tenants in alternative accommodation whilst the works were complete
Property Owners Liability – Tenant fell on a small flight of stairs as no stair hand rail was provided. Compensation paid to tenant for a broken arm.
The insurance market is exceptionally competitive in this sector and a good property owners insurance broker will shop around to get you the best cover and price. It is however very important to make sure the sums insured of your building and landlord contents are accurate of its new for old replacement value as the increasing rise in price and demand for building material and household goods is also applicable to the rental market insurance policies. The cost of living has also affected the insurance market and insurers and brokers have seen an increase in underinsurance – don’t let this happen to you!
Please talk to one of our advisers, who will guide you through what is available and give you the information that you need to make a decision. Call 01442 242400 or make contact here today.