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What is landlord insurance?
Landlord insurance is a policy that protects property owners who rent out their properties. It covers the financial risks of being a landlord, beyond standard home insurance.
So, if you own a rental property, it means particular scenarios that you might not have envisioned happening can be covered, such as injury on your property or loss of rental income.
Property insurance is a complex area, with no two clients having the same requirements. Waltons have nearly fifty years’ experience arranging tailored risk management and insurance solutions for all types of commercial property, and can offer a wide range of covers to match your particular needs.
We can provide warranty free policies in many instances and cover unoccupied and difficult risks too.
We have developed excellent relationships with leading property insurers, ensuring we select the widest possible cover at competitive prices. We can also provide competitive cover for residential properties.
We want to become your trusted landlord insurance partner with the added benefits of being able to offer risk management and health and safety advice. Call us today on 0151 236 4488 to discuss your landlord insurance requirements.
Why do you need landlord insurance?
Landlord insurance is essential because standard home insurance policies are primarily designed for owner-occupied residences and typically contain exclusions or limitations that leave landlords exposed to the unique set of risks that come with renting out a property, such as tenant-caused damage or liability issues.
Landlord insurance gives you peace of mind, knowing that your financial risks as the property owner are significantly reduced.
By having specific landlord insurance, you benefit from a number of factors such as;
Financial Safety Net: Protecting you against unexpected costs.
Property Repair Cover: Pays for damage caused to your building.
Liability Protection: Covers injury claims made on your property.
Contents Protection: Covers the furniture you provided in the property.
Lost Rent Cover: Reimburses you for unpaid rental income.
Legal Cost Cover: Helps with tenant disputes and claims.
Meets Mortgage Needs: A policy is often required by lenders for a buy-to-let mortgage.
Peace of Mind: Reduces worry about financial risks.
By not having landlord insurance, you expose yourself to a number of risks which can create possible financial burdens, such as;
Financial Loss: You have to personally pay for all damages and claims made.
Legal Costs Exposure: You will be liable for injury compensation and legal fees.
Loss of Rental Income: There is no compensation for periods without rental income.
Breaching Mortgage Terms: This could violate your loan agreement if you have a mortgage on the property.
Vulnerability to Tenant Issues: There is no protection against rent arrears or tenant damage.
What does landlord insurance cover?
Landlord insurance provides crucial financial protection against a range of potential liabilities and expenses associated with property rental.
Landlord insurance will vary from policy to policy, but it typically covers the building itself, liability claims, and loss of rental income.
Buildings Insurance:
- Covers the physical structure of the property.
- Protects against damage from events like fire, floods, and storms.
Public Liability Cover:
- Protects the landlord if a tenant or visitor is injured on the property.
Contents Insurance (Optional Extra):
- Covers any furniture or appliances provided by the landlord within the property.
Rent Guarantee Insurance (Optional Extra):
- Protects against loss of rental income if a tenant fails to pay rent.
What doesn’t landlord insurance cover?
While landlord insurance provides crucial financial security for your rental property, like any policy, it operates within specific parameters that you need to be aware of.
Landlord insurance is designed to address outlined risks, rather than the consequences of tenants’ actions that go beyond reasonable wear and tear, the upkeep expected of a landlord, or events requiring specialist cover, such as rent guarantee insurance.
Therefore, you shouldn’t expect it to cover deliberate damage by tenants, their personal belongings, prolonged periods where the property is vacant without specific clauses, or the gradual effects of time and normal use.
Similarly, events like widespread flooding or earthquakes typically fall outside standard cover and necessitate separate policies.
Understanding the limitations of your landlord insurance policy is the key to responsible property management and ensuring that you have the right safeguards in place for a number of eventualities.
What types of property are covered by landlord insurance?
Landlord insurance can provide cover for a range of residential property types, such as:
Residential:
- Semi-detached houses
- Detached houses
- Terraced houses
- End of terrace houses
- Apartments/Flats
- HMOs (Houses in Multiple Occupation)
- Bungalows
- Maisonettes
- Student Accommodation
- Holiday Lets
Landlord Insurance can also cover commercial properties, but these will require specialised policies:
- Retail Spaces (e.g. shops, restaurants)
- Office Buildings
- Industrial Units (e.g. warehouses, factories)
- Mixed-Use Properties
How much does landlord insurance cost?
The cost of landlord insurance will vary, mainly depending on the property size, value, location along with the level of cover you wish to choose.
You can quickly find out how much your landlord insurance will cost by filling out our simple online form here.
Frequently Asked Questions - Landlord Insurance
No, landlord insurance isn’t a legal requirement; however, it is highly advisable that if you do have a rental property with tenants, you look into a policy that covers you from a number of risks.
It is also worth noting that if you have a mortgage on your rental property, your lender might require you to have landlord insurance before you rent it out to tenants.
Landlord insurance policies don’t typically include boiler cover; however, it’s commonly offered as an add-on for an extra charge.
This additional coverage can be a worthwhile investment for landlords seeking to mitigate the risks of costly boiler repairs or replacements.
Landlord insurance does not cover contents as standard on all policy types and will depend on your provider and policy wording. However, this doesn’t mean that it can’t, and contents cover can usually be added onto landlord insurance policies as a bolt-on for an additional cost.
To claim on your landlord insurance policy, there are a number of steps that you must take:
- Learn what’s covered and how to claim.
- Prioritise safety and prevent any further damage.
- Notify authorities as required.
- Create a detailed documentation of the damage.
- Contact your landlord insurance provider.
- Complete the claim form.
- Wait for the claims decision to be made.
- If accepted, allow time for funds to be processed.
- If your claim is rejected and you don’t agree with the reasoning, appeal the claim.