UK property owners often choose to rent out their properties when they are not in use, in order to make some extra cash. Those who do so are strongly advised to take out landlords insurance. This provides financial protection in the event that something goes wrong with the property.
There are a number of different types of landlords insurance. Although it is best to have all possibilities covered, some landlords will choose to cover themselves in only some areas, to save some money. One such area is liability (or, as it is also known, public liability).
Liability insurance is there to protect the landlord in a situation where they are found at fault for something that has gone wrong with the property. Usually, it is used when a tenant is injured whilst in the property. They may take the case to court in order to receive compensation, and the landlord could be found guilty of negligence to the property. The landlord will be made to pay compensation to the tenant, and may also have to pay a fine. However, if they have public liability insurance, they are able to claim these costs on their insurance cover.
It should still be noted, however, that having liability insurance doesn’t make it acceptable to neglect a property. It is true the landlord will be protected financially against any applicable fines. But there could be other legal implications; for instance, the landlord may be banned from renting out properties in the future. This will probably be the case if they are found guilty of negligence in a number of cases. Their reputation as a landlord is also likely to suffer.
It is still a sensible idea to take out liability insurance – no matter how vigilant you are, one-off incidents are always possible.