Landlord Insurance is not a legal requirement, and therefore, not complusory. Having said that, it is always best to have landlord insurance in place, as a simple buildings & contents or home insurance policy is highly unlikely to cover all the needs of a landlord.
Renting a property/properties comes with risks that are not encountered when you live in your own home. If a tenant of yours is injured when renting one of your properties, you could potentially face a sizable claim, which may not be covered by a simple home policy. Therefore letting a property to tenants without landlord’s insurance is a large risk.
Having a landlords policy will include property owners liability, so in the event of tenants or members of the public injuring themselves on your property, and you are found responsible for said injury, property owners’ liability will cover you for any claims costs or damages as a result.
Additionally, a simple home policy may also leave you exposed if an insured peril results in the property being unlivable. For example, if an insured event such as a flood or fire occurrs, and tenants need to move out of the property, landlords, in some cases, can be contractually obliged to provide alternative accommodation for tenants. This means you as the landlord could face the cost of rehousing your tenants. Loss of rent cover comes as standard on many landlords policies and protects your loss of income and the additional costs of arranging alternative accommodation on your tenants’ behalf when such an event occurrs.
These are key reasons why a landlords policy should always be taken out when renting a propert. The benefits and cover they provide protect you against financial risks that a home insurance policy, or basic buildings and contents policy, would not.
Looking for landlords insurance? Contact the team today!