Decisions, decisions we all make them, a lot of them instantly but when it comes to insuring your property it’s worth spending a little bit of time to make sure you are correctly covered. We all know we need insurance but do you know which insurance you need for your rental property?
Standard building and contents insurance is not enough.
A standard home insurance policy usually doesn’t cover a rental property correctly due to the different risks associated with a tenant living in the property.
Insuring your property and assets correctly is essential should the worst happen and your building suffers from a fire, storm or other damage or someone makes a claim against you for an injury or other loss under your liability as owner of the property. A standard household insurance policy will likely be invalid if the property is being rented out to others and your insurers don’t know about it.
Why landlord insurance?
Most policies will cover buildings so your property is insured against the significant risks like fire, flood, burst pipes or storm damage. As a landlord or property owner, you will need to ensure you have property owner’s liability to cover you in respect of personal injury or property damage suffered by third parties arising from your ownership of the property.
Other insurance covers to consider when choosing your policy can include:
- Loss of rental income and/or alternative accommodation following an insured event if the property becomes inhabitable
- Theft of landlord furnishings
- The availability of immediate claims support
- Accidental and malicious damage to your buildings and landlords furnishings caused by tenants
Things to consider
You get what you pay for
It’s a well-known phrase, but one that unfortunately is often all too accurate. The policy that may appear a bargain could prove costly in the event of a claim. Have you checked whether your broker understands your sector? A broker who specialises in your sector will have a clear understanding of the risks landlords face and can often negotiate wide cover at reasonable rates, so there is no reason to skimp.
Don’t ignore the small print
Have you checked whether there are any warranties, endorsements or exclusions detailed in the quotation? These will levy certain conditions with which you must adhere to in order for your policy to respond in the event of a claim.
Is the excess affordable?
An excess is the contribution that you have to pay in the event of a claim, so it is worth checking whether this is something you can afford.
Underinsuring your property could prove to be a costly mistake, it is important to ensure that your sum insured is adequate in the event of claim. For example if your property is valued at £100,000, and you insure it for £50,000, you are 50% under insured, and so will only have 50% of any claim paid. For more information and advice why not get in touch with Northwood Insurance via 01905 887 837 or email firstname.lastname@example.org.
Northwood Insurance Services and Northwood are trading names of Jelf Insurance Brokers Ltd (Reg No. 0837227), which is part of Jelf Group PLC (Reg No. 2975376), 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. JIB148.06.16