Do you own an investment property but don’t know what type of insurance to get? This article provides information about landlords insurance and what it entails.
What is landlord insurance?
Landlord insurance is a policy that financially protects a property owner with losses connected to rental properties. The policy covers the building, with an option of insuring any contents that belong to the landlord that are inside the house.
Do I need landlord insurance if I live in the property?
If you own a block of flats where you live in one and rent out the others, you will need two types of insurance; landlord insurance and contents insurance. You will need landlord insurance for your apartments that are occupied by tenants, and you will need contents insurance for the possessions within your own apartment.
Do I need landlord’s insurance by law?
There is no legal obligation for a landlord to take out insurance however if you have a mortgage on your property then it is very likely that your lender will require you to take out insurance before taking on tenants.
Does landlord insurance cover tenant injury?
A landlord is only liable for the injuries of tenants and visitors in cases where the landlord’s negligence has caused the injuries in the above circumstances. This negligence must be the direct cause of the injury.
Landlords have a duty to:
- Properly maintain common areas
- Warn of hidden dangers
- Make safe furnished dwellings on short term leases
Does landlord insurance cover water damage?
If you have landlord buildings insurance and/or contents insurance, you will most likely be covered for sudden water damage. For example, the damage caused to your house by a pipe unexpectedly springing a leak will likely be covered.
How does landlord insurance work?
Landlord insurance covers several mandatory requirements for investment property owners. Typically, they are not covered by other types of home and contents insurance policies. They include:
- Theft or burglary by tenants or their guests
- Damage or vandalism by tenants or their guests
- Loss of rent due to tenant default
- Legal expenses required to evict a tenant
Any advice is general only and does not take into consideration your personal circumstances. Before acting on any information contained in this article you should consider if the advice is appropriate for your personal objectives, financial situation and needs.