Landlord Insurance FAQ's
If you're a landlord it is important that you have the right insurance cover for the risks that come with rental property. This means that you can also consider Rent Guarantee and Legal expenses to protect you against rental arrears.
Basic Landlord cover will protect the building itself and the fixtures and fittings. You can also cover any contents which may be it in the property for the use of the tenant.
If you have more than one property you can get specialist multi property policies.
We advise that you do notify your mortgage lender if you are considering letting your property as there may be implications that you will need to consider, especially if you do not have a buy-to-let mortgage.
Public Liability Insurance covers a Landlord’s legal liability to pay damages to members of the public for death and injury or damage to property or possessions, which has resulted from the Landlord’s property.
Most Landlords’ Insurance Policies do offer some level of Public Liability Cover.
Please check with your advisor before proceeding, or check your Schedule of Insurance if you already have a policy, to be sure.
You must obtain Employers’ Liability insurance if you employ someone in relation to your let property. Your policy must cover you for at least £5 million and come from an authorised insurer. For more information regarding this, please see: www.gov.uk/employers-liability-insurance.
You should check with an advisor to ensure that you have the correct cover that you need.
It will also say in your policy documents. If you require this cover you can request to have it added to your policy with UKinsuranceNET.
You can check with your solicitor or mortgage advisor. Insurance can be taken out from the exchange of contracts as many mortgage lenders insist that the cover is in place before the actual completion date.
An inventory can be used as evidence in the event that you have a dispute with the tenant or contents is damaged. It should be signed by both yourself and the tenant.
You should include as much as possible in your inventory.
If there is something that you would want to be replaced by the tenant if they damaged it, you should put that on your inventory. Be as thorough as you can to protect yourself and you contents.
Although not a legal requirement, a tenancy agreement is a way of protecting yourself. If you have a dispute with a tenant you have evidence in court to say that they agreed to your tenancy agreement.
Ensure that is signed and outlines anything that you need your tenant to agree to.
You must have permission from the tenant to carry out a tenant check, although it is not a legal requirement, it may give you peace of mind that they are financially stable enough to pay your rent.
It is recommended that a boiler is serviced annually.
You should ensure you roof is in a good state of repair to get a successful claim if anything should happen to it.
It is a legal requirement for a landlord to provide their tenant with a Gas Safety Certificate and to have all Gas appliances serviced and to provide ongoing annual Gas Safety Inspections.
it is the landlords responsibility to ensure that all sockets, switches and wiring in the property is safe. It is only the tenants personal possessions that you are not liable for.
If you under-insure your let property, your insurer is only liable to pay a proportion of your claim. For example if your sum insured only covers 50% of your rebuilding cost, then your insurers are only liable for paying 50% of the amount that you claim. This applies to your Contents and Loss of Rent as well as your Buildings cover.
The term Fixtures and Fittings refers to things such as bathroom suites or a fitted kitchen. Your buildings insurance policy will most probably cover the buildings itself and its fixtures and fittings.
Depending on your policy, if your tenant moves out for more than 30-90 days, you will have to change your policy from a landlord insurance policy to an unoccupied insurance policy. This is because of the increased risks that come with owning an unoccupied property.
An interested party is any other person or organisation with a financial interest in the property, such as a business partner, joint mortgage applicant or mortgage provider.
"Commercial purposes" is defined as any type of business being operated from the insured property. Our Landlords Insurance policies are designed to cover premises used solely for residential purposes therefore it is not suitable if your tenant or their guests run any type of business from home. If your tenant operates a business from the insured premises a commercial property owner's policy would better suit your needs. For further information on this type of policy please call us to discuss your requirements.
That's what we're here for. Give us a call as soon as possible and we can guide you through the process. You should collect evidence to support your case and be as honest as possible. We'll be happy to help and make you feel better about the whole situation.
All of our insurers provide 24 hour emergency help lines. Please see your policy wording for more information.
You should check your policy, all insurers have different excesses.
In most cases contractors can be paid directly by the client, however, for larger claims payment is normally made by the insurer direct to the contractor.
You will need a different tax code when you start renting out a property. You should notify HM Revenue and Customs (HMRC). If you don’t advise them, you could be charged a penalty.