If you are a landlord, or are considering becoming a landlord, you need to be thinking about protecting yourself financially against potential incidents. Let properties insurance allows you to do this; like with any other kind of insurance, you pay a regular fee in exchange for protection in the case that something goes wrong. It is specifically designed for the needs of landlords. What it typically includes is based on the problems past landlords have experienced.
Particularly if you are new to the landlord industry, you should opt for a policy that offers full landlords cover. This will cover a number of main areas:
- Buildings insurance, which helps if there is an incident at your property such as a fire, flood or storm. It will allow you to claim for the costs of repairing the damage caused.
- Contents insurance; this protects you if any items within your property are stolen or damaged. Policies usually have three categories of property here: furnished, unfurnished and partly-furnished. The cost of the insurance depends on the category the property falls into.
- Public liability insurance, which financially protects you if a tenant injures themselves in your property and it is found to be legally your fault.
- Rental insurance; this comes into play if a tenant, for whatever reason, doesn’t pay their rent.
- Legal expenses insurance; this covers the costs of any legal action that is required to do with your property (for instance, if you need to evict a tenant).
It is highly advisable for you to take out let properties insurance whenever you choose to rent out a property. As well as financial protection, it gives peace of mind. The low costs of the insurance policy will be far outweighed by the potential benefits it could provide.