Contrary to the popular belief of many people, there isn’t just one type of landlord insurance cover available. The policy you require usually depends on your circumstances, and on the nature of the property you are leasing. For example, if you have a number of properties that you wish to lease to tenants looking for a place to live, residential cover comes recommended. However, in contrast, landlords with office space for entrepreneurs need to consider commercial landlord insurance cover instead. In this blog post, we are going to compare the subtle nuances between the two.
Usually, residential landlord insurance that’s basic will cover you against floods, fire and other circumstances that can be of a massive inconvenience to both you and your tenants. Should the people you rent to also end up in arrears, insurance can cover the wages that you will have lost – after all, being a landlord is a source of income for many of us. In addition, should yourself or someone you are leasing to accidentally damage an aspect of your property, a good policy will look out for you and provide the landlord insurance cover you need to get everything amended in a timely manner.
In contrast, commercial landlord insurance is geared towards businesses in particular. You may find that you are a property magnate that has offices, shops and properties for people to stay in, and so ensuring you choose a policy that will cover your entire portfolio is essential. If you lose the keys to your property, or if someone else does, you can take advantage of insurance money to change the locks in a timely manner. In addition, should someone use the utilities of your assets without prior consent, you could claim back the total value of the bill for things like gas or electricity used.
The differences do go far deeper than this, but this is a basic outline of what to expect from residential and commercial landlord insurance cover respectively.