Why do I need special landlords insurance?

If you are a new landlord or are contemplating becoming one in the near future, this may be a question that you ask yourself, particularly if you already have owner occupier insurance in place on the property concerned.

The answer is simple enough and relates to the nature of the risk that a let property may face.

Of course, owner occupied properties may be just as likely to be hit by lightning or suffer storm or flood damage, as a property which is let out and you may justifiably argue that in these cases the levels of risk are identical.

You may typically find that both owner occupier and buy to let policies cover these types of risk as well perhaps as those relating to subsidence (in some policies at least).

There are many other situations though where let property may face additional risks, which necessitate specific landlord property cover. Many of these situations may be related to the fact that by definition you are going to have tenants in your property.

You may just have to accept that tenants are not going to take as much care with your property as you would or indeed as they might do with their own.  This may be particularly the case if you let your property on a furnished basis. You may want that sofa or carpet to last for a good few years but if your tenants are likely to be long gone by then, they obviously have no real vested interest in helping you make this happen.

So, for example, a specific landlord policy may provide you with:

You may of course have a buy to let mortgage on your property and your loan agreement may have an express condition that you have landlord buildings insurance in place up to the replacement value of the property.

Trying to make do with owner occupier cover when you have tenants may prove to be an expensive mistake in the event you make a claim and find that it is rejected out of hand.  You may also find that it may be difficult for you to find insurance cover in future.

 

 

Author: admin on July 27, 2012
Category: Landlords Insurance

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