Demystifying Landlord Insurance terms

August 3, 2015

Let’s face it; insurance isn’t a particularly interesting aspect of being a landlord; it is more often than not just another task on your “to do” list. And it doesn’t help that sometimes insurance is full of technical jargon. But because not having insurance puts your property at unnecessary risk, Northwood Insurance Services have compiled a guide to explain a few of the most common technical terms you may have spotted.

Buildings Declared Value

The Buildings Declared Value is the cost of rebuilding the premises. If this figure is inadequate, an average could be applied meaning that any valid claim payout would be proportionally reduced by the amount that the property is deemed underinsured.

For example if the building is worth £200k and is insured for only £100k, if a total loss claim occurs the landlord could possibly only be paid £50k as he is underinsured by 50%.

Landlord Contents 

Landlords Contents insurance covers household goods, left in your rented property, for which you are legally responsible.

Loss of Rent cover vs. Northwood’s Guaranteed Rent scheme

The Guaranteed Rent scheme means that your Northwood office will continue to pay you the rent if the property is vacant or if the person living there stops paying rent. However, if you suffer from a loss such as a fire or flood that leaves the property unsafe to rent, you could end up out of pocket. This is where you can claim from your policy for loss of rent, to ensure your monthly Guaranteed Rent payments can continue uninterrupted to the value of up to 25% of your rebuild value over a maximum of 36 months, or until the property is safe to rent again. Once the property is rentable again, the Guaranteed Rent scheme will simply continue (subject to contract).

Trace and Access

If you have a water leak from a bust pipe that is behind a wall it can be difficult to locate the leak. The damage caused whilst searching for the source of the leak is covered under our policy and is known as trace and access.


If there are any other terms you would like explained please contact the team on 01905 887 837.


Northwood Insurance Services and Northwood are trading names of Jelf Insurance Brokers Ltd (Reg no 0837227), which is part of Jelf Group PLC, and is authorised and regulated by the Financial Conduct Authority (FCA). Registered address: Hillside House, Bowling Hill, Chipping Sodbury, BS37 6JX. (Registered in England and Wales). Not all products and services are regulated by the FCA.



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