Insurance can be very confusing. Most of us simply want some financial protection if something goes wrong: but there are so many different types of insurance, it is difficult to choose the right one. The same goes for landlords insurance – new property owners are often baffled when it comes to taking out cover. Luckily, it is very easy to understand.
Landlords insurance is taken out by those who rent out properties for protection against unexpected incidents. There are a number of areas it can cover:
- Loss of rent; this comes into play if, for whatever reason, the landlord doesn’t receive their regular rent. The tenant may have left the property without paying what they owe, leaving the landlord with no way to contact them. Alternatively, it may be that – for whatever reason – the property can’t be used for a period of time (for instance, if it has been damaged).
- Contents cover; this financially protects against the loss (through theft) of damage of any items within the property. The items will either be replaced new for old, or the landlord will be financially reimbursed.
- Fire, flood or theft; if any of these incidents take place, the landlord can claim the costs back from their landlords insurance provider.
- Public Liability; if the landlord is found responsible of negligence by a court when a tenant has been injured in the property, any fines will be paid by the insurance company.
All of those renting out a property, or part of a property, should have insurance cover that applies to all of these key areas. Even the most careful person can find themselves in financial trouble when something unexpected happens. Taking out insurance not only provides you with financial protection; it gives peace of mind.