What is landlord insurance?
Landlord insurance is a specialist product that covers landlords from damage costs and various different financial losses that come with the territory of being a landlord. Amongst all the positives, unfortunately, there’s a lot that can go wrong when you’re a landlord that can in turn, cost you a lot of money.
With that in mind, landlord insurance is really important for any landlord. Buildings insurance and contents insurance are usually the main types of cover that a landlord will need, however a lot of other landlord-specific covers can be added onto a policy, such as legal expenses insurance and alternative accommodation expenses.
An insurance policy that covers a landlord from damage costs/losses connected with their rental properties.
There are many risks to a rental property – such as fire, flood, theft, vehicle collisions or malicious damage – that could incur significant financial loss for the landlord, in the absence of a suitable insurance policy.
While this type of insurance is taken out by the landlord to protect the landlord’s financial investment, ‘landlord insurance’ is a broad term, typically consisting of many types of cover, meaning that no two given landlord insurance policies are likely to be the same.
You may elect to purchase a very basic landlord insurance policy consisting of buildings and contents cover, perhaps selecting from a range of optional extra areas of coverage as may be offered by your insurer, such as emergency cover and liability cover.
Alternatively, you have the option of choosing from the many comprehensive insurance policies on the market, which cost-effectively bundle together all of the most popular and relevant types of coverage to cover all, or almost all, of the potential risks to your rental property.
As the term suggests, ‘landlord insurance’ is a specific type of insurance that is designed for the needs of landlords. It is not to be confused with standard home insurance policies, which are unlikely to be sufficient for your requirements as a landlord.
The difficulty of answering the question “What is landlord insurance?” is that it does not tend to be a single product. A given policy is instead likely to be a combination of different insurance products, including buildings cover, contents cover, liability cover and more.
This makes it vitally important to carefully consider the various landlord insurance policies available from many different insurers, so that you can be sure of purchasing the right policy for you.