InsuranceLecturer — Landlords invest time and money into their property in order to make those properties appealing to possible tenants. As an investor you want to ensure that you are protecting those properties from potential damages. Landlord insurance gives you protection from fire, theft and other damages.
Also known as buy to let insurance, there are many landlord insurance policies available and choosing the right one for your properties may seem a bit daunting. In order to choose the right cover for your needs, you should understand the three main features to a landlord insurance policy.
Landlords Building Cover – Landlords building insurance protects the structure of your property. This cover will reimburse you for the cost of rebuilding homes, apartments and other buildings in the event of a total loss scenario.
In order to choose the right building cover you should ensure that you carefully read policy terms and conditions and be sure of just what disasters you are covered against. Examples of disasters can include fire, flood and many natural disasters.
Landlords Liability Cover – Liability cover is a must for landlords today. Just one personal injury claim can completely break the bank if you do not take the necessary steps to protect yourself.
A personal injury claim can easily reach $120 or more and liability cover will protect you in case a tenant or a visitor to your building is injured on your property.
Landlord Contents Cover – If you are renting out property that is furnished, content insurance is important. You will want to cover the cost of replacing or repairing furniture, electronics, appliances and other belongings in the event of damage.
In addition to these basic cover types you can also opt to add additional features to your policy that will further protect you. These additional cover types include:
Rent Guarantee Cover – When your property is providing an income you want to protect that income. Rent guarantee insurance cover will protect you against loss of rental payments in case those payments are missed.
For instance, if you have a tenant who refuses to pay rent or you have properties that are sitting empty, this cover will pay you for the loss of income from those properties until you once again rent them out.
Legal Expense Insurance – Most landlords know the frustrations of being consumed by legalities with tenants at some point. If you are taken to court or you must take a tenant to court, legal expense cover will pay for your legal fees.
Court fees can easily reach $1.200 or more so this cover is a good way to protect yourself from loss of money that could be the result of a legal battle.
Remember that landlord cover is just like other insurance products. You want to be certain to do your research before choosing a policy. Remember also that excess payments are typically part of your policy.
Make sure that your excess payment is not beyond your financial reach should you need to file a claim. Higher excess fees may give you a lower premium but remember that this fee will have to be paid before your insurance company will reimburse you for damages.