Negotiating the world of landlord insurance involves sailing through a sea of legal jargon, terminology and long contracts. This is a topic that can be confusing and frustrating, particularly if you are taking your first steps as a landlord.
Here is a guide to landlord insurance, from what it does, to the types of cover and how to find the best possible price.
What is Landlord Insurance?
Put simply, landlord insurance is your ‘in case of emergency’ plan. A policy will cover your property for any financial losses in a multitude of circumstances, from damage to your property to a tenant who does not pay the rent.
Why do You Need Landlord Insurance?
As a landlord, the biggest investment you will make is your property purchase. But given its value and the risk involved with renting, it makes logistical and financial sense to be prepared and protect your most valuable asset.
If there was a flood or fire at your property, could you realistically afford to repair the damage and supply your tenants with alternative accommodation? If your tenants damage your property, can you afford to put it right? Or if tenants fail to pay the rent, can you keep up the mortgage repayments? For the majority of landlords, the answer to these questions would be no. Thankfully, this is where your landlord insurance would lend a helping hand.
Types of Cover
There are a huge array of different types of landlord insurance, that if you are new to property rental, it could leave you feeling confused. There are straightforward policies such as building and contents insurance, to those that offer home emergency cover in the event of a flood, as well as rent guarantee.
No matter which type of cover you choose, the most important thing is to make sure it offers an appropriate level of protection. For example, make sure building insurance covers damage caused by malicious intent. Or in the case of rent guarantee, many contain a clause that stipulates a maximum amount of money to be paid over an agreed period of time.
How to Find the Best Landlord Insurance
Some landlord insurance policies may cover a huge array of things that you simply do not need, so knowing that you require will help you save money. When you have determined what type of insurance you require and the level of cover your property needs, make use of Barbon Insurance’s comparison tool, to find the appropriate policy for the best possible price.
The most important thing to remember about landlord insurance is quality, not quantity. It is generally better to choose an insurance that offers larger cover for specific issues, rather than a policy that covers a small amount of everything.