Landlord Insurance – why you need it and our top tips

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Landlord Insurance – why you need it and our top tips

With the decline of property ownership in the UK, the buy-to-let sector is booming and the demand for rental properties is soaring higher than availability. Considering this demand, for those who have access to the housing sector, becoming a landlord can be highly profitable. However, investing in and maintaining rental properties is often extremely costly and therefore there are a number of important things to consider when protecting your valuable property assets. One such consideration is the importance of landlord insurance.

Here at Van Mildert, we have compiled some key things to know about landlord insurance and our top tips for ensuring you find the best policy for you…

What is landlord insurance?

Buy-to-let investment is now a key industry and a major responsibility that comes along with being a landlord involved in this sector is protecting both yourself and your property. Landlord insurance is a more sophisticated policy than the typically held homeowner’s insurance and protects landlords from specific risks associated with having a rental property. Landlord specific covers could include…

  • Building and contents insurance
  • Property owners liability
  • Loss of rent
  • Protection against potential legal costs
  • Tenant default insurance

 

Do I need landlord insurance?

We are frequently asked the same question, ‘do I need landlord insurance?’

The answer is absolutely YES – Being a landlord is a complex and often time-consuming process, for which organising adequate insurance for your rental properties is just another task on a long list of duties. Some landlords may push this task to one side in favour of prioritising others, however, in the other role of being a landlord insurance should be one of your top priorities. As a landlord, you are left open and exposed to a number of risks including loss of rental income or property damage, theft and so on. Therefore, to ensure you retain peace of mind over such mitigating risks insurance is a must.

Is landlord insurance a legal requirement?

Although there is no legal obligation to have landlord insurance for your property there are a plethora of reasons why you should consider taking out a dedicated insurance policy. One thing to consider is that if you are renting out your property you will not be sufficiently covered by standard homeowner insurance policies. This is because insurance providers view the risk of having tenants living in a property differently and most likely higher to simply a homeowner living in it. Henceforth, they need to protect both you and themselves against the different kinds of risk that may present themselves. Additionally, landlord insurance is often a requirement of mortgage lenders so this is something to think about.

Landlord Insurance Top Tips…

Van Mildert has compiled a list of top tips for finding the best insurance policy for you:

  1. Be honest – The strength of your policy is based upon the honesty of your application, so be sure to fully disclose the type of tenant that will be inhabiting your property to your insurance provider.
  2. Use comparison sites – If you are a long-time landlord you will be well versed in the trials and tribulations of finding landlord insurance. Searching for policies can be tedious and time-consuming so we recommend trying out comparison websites. They can save you a great deal of time, giving you immediate access to a great variety of rental property insurance quotes so you can make sure to choose the best option for your property and financial situation. Be aware, comparison sites may let you compare insurers quickly, however, they will not include the whole market as many deals are only available direct from an insurers website.
  3. Use a broker – using a specialist landlord insurance broker. If you are finding the nature of your property type challenging a specialist broker could be a huge help in finding the suitable cover for your needs. Give the British Insurance Brokers’ Associations search tool a go!
  4. Check! – You may think you have found the cheapest quote for your requirements, however, you must be certain of the small print of the policy. Double check your quote and pay close attention to the policy details before going ahead. You can also check company reviews using a peer review platform such as Feefo.

 

Of course be sure to do your research and find the best provider and policy for you. To get a landlord insurance quote contact our team today. We will get one of our in-house experts to get back to you as soon as they are able and begin an application for a landlord insurance policy cover that suits your needs. Van Mildert also offers a range of additional landlord services, including rental guarantee insurance and tenant referencing schemes.