Why Is Home Insurance Not Suitable To Cover Rental Properties?
If you are a landlord and own a property that you let out to tenants then you will no doubt wish to make sure that you have adequate insurance in place to cover the likes of the building, fixtures and fittings and contents. A standard home insurance policy that is arranged to cover a residential property is not suitable for rental properties as there are a number of specialist risks that you may want to insure relating to your rental property.
For instance, if one of your tenants was injured in the property that he or she is renting from you perhaps due to say a gas explosion then they may try to sue you for damages. Landlords insurance should cover such a situation.
In the event that the tenant is unable to maintain their rental payments then landlord insurance would often provide the option of providing some form of rental guarantee scheme. This would at least provide some financial support towards paying bills and may be of particular benefit if the investment property has been purchased with the assistance of a buy-to-let mortgage.
Should there be the need to call out the likes of a plumber or electrician in the middle of the night perhaps due to a boiler problem or an electrical fault then it may be possible to add an optional extra to the landlords insurance policy to cover home emergencies.
It may be necessary for you to provide your tenants with alternative accommodation for a period of time perhaps due to water flooding. Landlords insurance should include this benefit so that you don’t end up having to pay the full cost of the accommodation.
Should your tenant maliciously damage the property or steal something that belongs to you from the property then there should hopefully be the option to include cover for such eventualities.
So, if you are looking for a competitive landlord’s insurance policy, why not get in touch with us today.