Being a landlord is challenging, and no one knows what is going to come next. It is helpful for landlords to receive assistance, and while you cannot predict what will happen in the future, you can minimise the impact problems have. Insurance is vital for landlords, but you must have proper insurance in place.
You’ll find many, if not most, buy to let lenders will insist on you having landlord insurance. There is no legal requirement which states you must have insurance as a landlord, but if you cannot obtain a buy to let mortgage without it, it soon becomes a necessity.
It makes sense to have this cover in place. A lot can go wrong in a home, and if someone suffers an injury, the costs associated with a claim can be astronomical. If you have to pay for this sort of application, it could bankrupt you, so it is best to arrange insurance for your rental property. Hopefully, you will never need to use it, but if you do, having this insurance is crucial.
Also, many landlords are concerned about the property lying empty or a tenant missing a rental payment. When you need to make mortgage payments, and you rely on the rental fee to pay this each month, you want peace of mind that you are covered in the event of something going wrong. With the right sort of landlord insurance, you have one less thing to worry about.
Make sure you have building insurance as part of your policy
Some landlord policies insurance includes building insurance, but not all do. You must make sure you have building insurance in place. You want coverage that insures the building structure while also covering problems with built-in items such as the boiler, bathrooms and the kitchen.
Suitable landlord insurance covers you for:
· Fire, lightning, explosion or earthquake
· Riot, civil disturbance or malicious acts
· Storm or flood
· Escape of water
· Accidental damage
As a landlord, it is helpful to know the most common claims made on landlord insurance. The following five issues have recently been cited as common landlord insurance claims, according to a leading landlord insurance provider:
1. Broken or burst water pipes
2. Weather-related damage
3. Damage from break-in and thefts
4. Accidental damage by tenants
5. Malicious damage from tenants
Do you need contents insurance?
If you have provided furniture or appliances for the rental property, you should have cover for them. This provides you with protection in the event of problems arising. However, you should be aware that your landlord content insurance doesn’t include your tenants’ contents, only your own. You should inform your tenant they need to arrange their insurance.
At Hunters Forest Hill, we know letting your home is hard, but we are here to assist you in the process. If you aim to buy, sell, let your home or rent property, we are active in New Cross, Peckham, Dulwich and Brockley, in addition to Forest Hill, so get in touch with one of the top three agents in London, and we will be happy to assist you.