Preparing to Let Your Property – Landlord Insurance

In the run-up to preparing to let your property, you need to give some careful thought to insurance issues.

Having proper insurance policies in place is crucial for any landlords letting out properties, as you’re likely to have a considerable amount of money tied up in the property and don’t want to lose money as the result of accidents or unexpected events. For example, if your property is affected by fire, burst pipes, leaks, theft or flooding, you need to ensure that you’re properly ensured and won’t end up out of pocket by having to pay for the cost of damage.

When you’re choosing building insurance, aim to find a product that covers all the costs that would be involved in re-building your property, not just the market value of the building.  A good policy will also provide some form of compensation for loss of rent, if the building becomes unfit for letting as a result of damage from flooding or a fire.

As well as building insurance, don’t forget to consider contents insurance too. If you’re letting out a fully furnished property, then a full contents cover may be required – but do check the level of coverage it offers and whether it will sufficiently cover the cost of replacing everything before signing on the dotted line.

For part-furnished or unfurnished rental properties, where you’re supplying items such as kitchen equipment (oven, fridge and freezer), curtains, carpets and other fittings, then a limited contents policy may be adequate to cover your needs. Of course, all tenants in your properties will need to purchase their own insurance to cover their contents.

Liability insurance is also useful for landlords to have, as accidents caused by items in your property could result in tenants claiming for personal injuries. For example, a tenant could claim for an injury caused by slipping on a loose tile in the bathroom or tripping over a badly laid carpet.

Not all insurance policies are equal, so be prepared to shop around, check out the best deals and find the most appropriate landlord insurance for your individual needs.