No matter how careful you are, being a Landlord is hard work and things can still go wrong so you need to prepare for the unexpected.
As a landlord, it’s your responsibility to insure the property against damage like fire and flood. While there is nothing stopping you from taking out a regular home insurance policy it is not advised as it may not cover you if the property is rented out to tenants. The better option is a specific landlord insurance policy that is tailored to your needs as a landlord. Key extras you will normally find in your policy are:
- Liability cover – in case a tenant becomes injured in your property and tries to sue you
- Alternative accommodation cover – if your property becomes damaged, a landlord insurance policy will pay for tenants’ accommodation while repairs are carried out
- Cover for up to ten properties – perfect for when you decide to become a property mogul
In addition to these extra features, the policy will include standard home insurance aspects such as buildings insurance, cable and underground pipe cover and cover against subsidence and ground slip.
Depending on the quality of your cover, some policies may come with premium features as standard if not below are some extras that might be useful:
- Contents cover – Keep this cover in mind if you rent your property furnished
- Accidental damage cover – this keeps you covered for any accidental damage
- loss of rental income – in some cases you can claim for loss of rent if your property is flooded or fire damaged
- Employer’s liability cover – covering any cleaners of other staff who may get injured in your property
Finally, keep in mind that all insurance costs can be tax deductible, so it won’t eat into your profits.