Building insurance for landlord insurance
Why you need it: buildings insurance covers the cost of repairing or rebuilding the structure of your property in case of damage caused by events like fire, floods, storms, or vandalism. It is necessary for covering risks like property damage and is often a requirement set by mortgage lenders.
The property itself is likely the most significant financial asset for a landlord. Damage to the building can result in substantial repair costs, which could be financially crippling without proper coverage.
Without it, you could face significant financial losses in the event of such incidents.
What it covers:
- Structural damage to the property (walls, roof, floors)
- Permanent fixtures (kitchens, bathrooms)
- Outbuildings (garages, sheds)
- In some cases, alternative accommodation for tenants if the property becomes uninhabitable
Contents insurance
Why you need it: while building insurance covers the structure, contents insurance protects the items within the property. This is especially important if you provide furnished or partly-furnished accommodations. It ensures you can replace or repair items without bearing the full cost.
What it covers:
- Furniture (beds, sofas, wardrobes)
- Appliances (fridges, ovens, washing machines)
- Personal belongings if you leave items in the property for tenant use
- Carpets and curtains
Landlord liability and legal expenses insurance
Why you need it: landlord liability insurance, including property owners’ liability, protects you from claims made by tenants or visitors who may suffer injury or property damage due to issues related to your property. This insurance covers legal fees and compensation claims, providing you with peace of mind. Property owners' liability cover avoids out-of-pocket expenses related to legal fees and damages.
What it covers:
- Legal costs in defending claims
- Compensation for injury or damage to property
- Medical expenses in case of tenant injury
Rent guarantee and tenant default insurance
Why you need it: rent guarantee insurance ensures you receive rental income even if your tenant defaults on payments. This is particularly useful to maintain cash flow and cover mortgage payments if rental income is disrupted.
What it covers:
- Unpaid rent
- Legal expenses for eviction proceedings
Loss of rent insurance
Why you need it: this insurance covers loss of rental income if the property becomes uninhabitable due to insured events, such as fire or flood and the tenants have to move out. It ensures you do not lose out financially during repair periods.
What it covers:
- Lost rental income
- Costs associated with rehousing tenants
Emergency assistance cover
Why you need it: emergency assistance cover provides quick solutions for urgent issues like plumbing, electrical faults, or heating breakdowns. It ensures problems are resolved promptly, maintaining tenant satisfaction and avoiding further damage.
What it covers:
- Emergency call-out charges
- Repairs for essential services (plumbing, electricity, heating)
- Temporary accommodations if the property becomes uninhabitable
Having the right insurance policies helps landlords to protect their properties, finances and peace of mind. Building insurance and contents insurance form the foundation, while additional covers like landlord liability, rent guarantee and loss of rent insurance provide protection against various risks. Investing in these policies will empower you to be able to handle any unexpected events, ultimately contributing to a stable and profitable rental business.
Seek personalised landlord advice
AST Assistance’s extensive experience in property insurance extends beyond our Northwest base. Our team will discuss your circumstances, explore your options and ensure all actions you take are in line with current legislation and regulations. 75% of our cases are resolved before any court involvement, so we are the name landlords around the country trust to solve tenant disputes, and tenancy agreements or simply to find out more about rental property insurance.
We help you to stay within UK law and fulfil your obligations correctly.
If you need further assistance with landlord insurance covers or want to know more about legal protection, get in touch with AST Assistance today by calling us on 01706 619954 or by using our contact form.
