Rental property insurance
The type of landlord insurance most appropriate for you will depend on whether you could be considered a commercial landlord or a residential one. Meaning to you mainly let out properties like houses and flats or commercial buildings like warehouses, offices or factories. Some commercial properties will let you have a mixed portfolio of both residential and commercial lets under the same multi-property policy.
You might find that due to the additional risks perceived to be involved that commercial landlord insurance is slightly more costly and more comprehensive as standard than a residential landlord’s insurance policy.
There are many providers of landlord insurance, and each policy can differ by what they feature as standard and what optional extras are available. When looking for rental property insurance you should think about what specific features you want from a policy to find the best policy for your requirements.
Rental property features and optional extras may include:
This policy simply provides cover the buildings structure and permanent fixtures, exactly what events are covered against may vary by provider. If you have a mortgage on the property you let out you may find that certain mortgage lenders require you in your contract to have at least this level of landlord insurance on the property.
If you let properties as fully or partially furnished then having contents insurance in place will protect those items that you provide, excesses and exactly what items are covered will vary by insurer, some may require you to purchase optional extras to provide cover for some items.
Loss of rent cover
If an insured event means that you cannot let out the property for a period of time having loss of rent cover might be able to reimburse you the loss of income you incur as a result.
Vacant property cover
Properties that are unoccupied pose a higher risk to insurers, therefore some policies may only provide protection for a property that is vacant for short period of time. You may wish to therefore check what you are covered for when a property is vacant when you compare policies.
If a tenant or visitor of one of your properties was to make a personal injury claim, this cover could help cover your legal costs and if you were found to be at fault may pay the claimants compensation and legal costs.