What is landlords insurance?
Being a landlord can be an expensive business, and if you haven’t got the right cover, you’ll have to foot the bill if things go wrong.
We look at what makes up a good landlords’ insurance policy, and why it might be useful.
Do I need landlords’ insurance?
A thorough landlords’ policy can include several useful features, such as buildings insurance, accidental damage cover and optional financial protection against loss of rent.
Landlord Insurance cover isn’t compulsory, but some lenders make it a requirement of taking of your mortgage provider .
Landlords’ buildings insurance
Building’s insurance is one of the main types of cover that a landlord will need. It is important because it protects the bricks and mortar of your property.
For example, if your property suffers a flood or fire, buildings insurance will cover the rebuilding costs.
This usually includes replacing kitchens units and bathroom suites, while some policies may also cover sheds, garages and other outbuildings.
Before you take out buildings insurance you’ll need to know the rebuild cost of your property.
Landlords’ contents insurance
Contents insurance is another vital piece of cover, particularly if your property is rented fully or part furnished.
This will protect your beds, carpets, sofas, TVs and other possessions from theft or damage.
It’s also possible to get extra cover for accidental damage, which could be anything from a smashed mirror to a coffee stain on an expensive rug.
Look for a policy that will replace your belongings on a “new for old” basis, which means your possessions will be replaced with shiny new ones, should you make a claim.
And remember, you don’t have to insure your tenants possessions – that is their responsibility
Landlords’ liability insurance
Liability insurance can be added as an extra to most policies and is often a requirement if you offer student or social housing.
It will cover you against tenants who may try and sue you for an accident that occurs on your property.
As you often won’t know who is coming back and forth, it can be invaluable for protecting you in the event of injury or death on your property.
Loss of rent insurance
If your property becomes uninhabitable for any reason and you can’t rent it out for a certain period, any rent you miss out on can be protected by loss of rent insurance.
This is particularly important if you have taken out a large mortgage on the property and are relying on the rent to meet the monthly repayments.
If this is the case, it could spare you the agony of losing the property altogether.
For this cover you will need to have tenant agreement fully signed at Notary and the tenant must have had Spanish tax return and other details. We can advise on this matter at time of cover quotation.
Legal expenses insurance
You may also want to consider covering yourself for any legal costs following potential disputes with tenants, including evicting squatters and repossessing your property
Legal expenses insurance can also cover the cost of defending you against any criminal action.
You might be able to extend your policy to cover the legal costs of recovering any outstanding rent owed by your tenant, so always check the details of your policy.
Peace of mind for you
The 24-hour assistance numbers are available with both English & Spanish speaking staff, along with our local representative of brokerage email & telephone available for any consultation or change to policy.
Why do tenants need contents insurance?
It’s easy to underestimate the value of your possessions. Laptops, smartphones and TVs are just some of the items that could cost you thousands of pounds to replace. With contents insurance for renters, your possessions will be covered against loss or damage in your home.