Building And Contents Insurance For Landlords

If you own a property that you rent out to others, you have unique insurance needs. Traditional home owner's policies may not offer the appropriate level of protection that you need.

For this reason, some insurers are now offering a speciality insurance policy for landlords.

Building and contents insurance traditionally covers damage or loss to your property and its contents. It can also be purchased individually, covering only the building or only the contents. As a landlord, your primary concern is the building.

However, if you let the property furnished, you will want to make sure you have contents cover as well.

Landlord insurance goes beyond just insuring the building and contents. It also offers legal protection. Even if you do not live in the building, should someone be injured on the property, you will most likely be found liable for their injuries. This speciality type of insurance will cover your legal expenses in this eventuality.

As a landlord, you may have other legal expenses as well. If a renter refuses to pay their rent, it may be necessary to sue them. It may also be necessary to seek legal action to remove unwanted inhabitants from the home. These legal expenses are generally covered within a policy, however it would be wise to check rather than make assumptions.

Should a tenant leave before the expiration of their lease, whether of their own accord or by eviction, you may find yourself losing money. Your building and contents insurance can help replace this lost income for a set period of time until you are able to rent the property to a new tenant.

As a landlord, it is important to promptly make repairs. Speciality insurance will often cover the expense of the repair and materials. There is often a limit on this type of cover, though, so it's important to make sure the limit is high enough to fully cover your needs.

Contents insurance will cover the items within the home that belong to you, not your renter. This may include furniture, appliances or decorative objects. If you let the property unfurnished, let your insurer know as this type of cover may not be necessary.

When shopping for insurance, you should first examine your needs. You need to fully insure the building.

Make sure to read the fine print. Many insurers only cover the market value of a building, rather than the true replacement value. If your idea of the building's value does not match the insurers, consider hiring an appraiser.

Make sure your liability cover is adequate. You need to be covered in case someone is injured on your property as well as injury to your tenants should the building cause damage to them. Whilst legal expense cover is generally a part of the policy, make sure it is enough to cover your needs.

Ask about available discounts. If you take measures to make the building more secure, let your insurance company know. You may also be able to get a discount if you own multiple rental properties and insure them all through the same company.

Being a landlord can bring some unique problems. Don't let building and contents insurance be one of them!