If you’re thinking of renting out a property you own, landlords’ insurance is something you’ll need to have in place before you get your first tenant.
There are many different levels of landlords’ insurance that you can find with under a business insurance policy, depending on which insurer and added extras you choose.
Getting off on the right foot with your new tenants is important, so making them aware of what your landlords’ insurance already covers within the property might be something you want to do.
There are a couple of things to consider listed below regarding any possessions you may be supplying to your tenants as part of the rental agreement.
You may want to protect your possessions in a rented flat with accidental damage cover as part of your landlords’ insurance. In many policies this will be an added extra, but it’s worth thinking about.
Even the most responsible tenants can have accidents and the end result may mean you’re out of pocket if you don’t have any landlords’ insurance in place to help pay for the damage.
If you’ve decided to rent out your property fully furnished, accidental damage cover can lessen the financial impact of things like getting sofas and carpets cleaned after a red wine spillage, replacing broken mirrors and repairing any torn upholstery.
You’re not legally obligated to take out accidental damage cover with your landlords’ insurance policy, but if you don’t it can be problematic trying to get any repair costs from your tenants.
It’s best for both parties if they know exactly who is responsible for paying for any accidental damage before the lease agreement starts.
Landlords’ contents insurance
You may not want to cover everything for accidental damage, but you should at the very least have landlords’ contents insurance.
This will cover you for the replacement of everything in your rented property if it gets stolen or damaged beyond repair.
As with accidental damage cover, it’s better if you’re clear with your tenants about what landlords’ insurance you have in place and what they need to cover themselves i.e. their own property and possessions.
Many first-time tenants may not be aware of the ins and outs of insuring a property, so in your capacity as the landlord, you should make clear any limitations your landlords’ insurance has.
Outside the property
As a landlord you should also think about insurance outside the dwelling itself. People falling in potholes or tripping over raised paving slabs is a common occurrence. If you fail to deal with this is a landlord, you could end up facing a compensation claim, so it’s important to have liability insurance in place.