Are you thinking about investing in landlord insurance? Unsure about things you should know about landlord insurance? While it may not be a legal requirement, you’re leaving yourself open to a huge amount of risk without it.
Here are the most important things you should know about landlord insurance, including what it is and what type of insurance you should get.
What Is Landlord Insurance?
Landlord insurance provides you with protection against the risks associated with renting to tenants.
Usually, landlord insurance includes protection against things like damages to the building or contents.
But there are other optional policies you can take out, like cover for boiler breakages or missed rent payments.
What Type of Landlord Insurance Should You Get?
There are many different types of landlord insurance available. Each one will cover you for different circumstances. The main types of cover available include:
Building – Covers the repair of structural damage, plus fixtures and fittings, in the event of a fire, storm, flood or other accident.
Contents – Covers damage or theft of furnishings, including things like curtains, carpets, and white goods. This doesn’t include items the tenant owns, as they should have their own tenant’s insurance.
Liability – Covers the costs if you or your tenant is injured on your property.
Rent guarantee – Recovers any missed rent payments by the tenant and any legal fees should you take a tenant to court.
Home emergency – Protects in the event of an emergency, like a boiler, plumbing, security, or pest issue.
Key care – Covers the cost of providing new locks or keys to tenants.
If you’re not sure which type of cover you need, speak to PTL Lettings and we’ll be happy to advise you, or check with your lender.
Click to Read 8 Things Every Landlord Should Know
4 Things To Know About Landlord Insurance
1. It’s Different To Home Insurance
Landlord insurance is very different to regular home insurance. If you have home insurance for a property, but you’re renting the space to a tenant, your policy will automatically be void. If you’re not living in the property, basic home insurance won’t provide you with the cover you need as a landlord.
2. Some Lenders Mandate It
It’s not a legal requirement to have landlord insurance. But most mortgage lenders will make it mandatory before entering into an agreement with you. If you don’t comply, you could be breaking the terms of your mortgage.
3. It’s Tax-Deductible
Just like most landlord expenses, you can usually claim back on the costs of your landlord insurance. Make sure you keep records of payment and notify your accountant (if you have one) about the costs.
4. Bulk Discounts Apply
If you rent more than one property, you could get a discount on your landlord insurance. Many providers will offer you a discount if you choose to arrange your insurance for all buildings on a bulk policy.
Click here to read 7 Steps to Becoming a Landlord in Peterborough
Rent With Confidence
At PTL Lettings, we can help you rent with the confidence and security you need. Find out why landlords choose us here!
For more advice on landlord insurance and property management services in Peterborough, get in touch with us today on 01733 555183 or email info@ptl-lettings.co.uk.
In the meantime, we’ve answered some of your common questions about landlord insurance.
Frequently Asked Questions About Landlord Insurance
Do I need landlord insurance if I have home insurance?
Standard home insurance doesn’t cover rental properties. You need a specific landlord insurance policy to protect your investment.
What does landlord insurance cover?
Landlord insurance typically covers building damage, loss of rent, public liability, and legal expenses. Some policies also include optional cover for contents, boiler breakdowns, and key replacement.
How much does landlord insurance cost?
The cost of landlord insurance depends on various factors, including the property’s value, location, number of tenants, and the level of cover you choose. It’s essential to compare quotes from different insurers to find the best deal.
Is landlord insurance a legal requirement?
While not legally required, most mortgage lenders will insist on landlord insurance before approving a mortgage for a rental property. It’s strongly recommended to protect your investment.
Rental Property Management in Peterborough For landlords
At PTL Lettings we are your local experts for property management in Peterborough. If you need expert letting agent or property management services or advice, our experienced team can help. Contact us today on 01733 555183 or email info@ptl-lettings.co.uk.
