Having made a significant financial outlay in purchasing an investment property to let out it is important that you protect your investment(s) by arranging a suitable landlords buildings insurance policy unless you have just purchased the lease and established that it is the responsibility of the freeholder to insure the building.
The best way to describe what is covered by such a policy is for you to think what would happen if you were to turn the property upside down and shake it. Anything that does not fall out of the property such as the walls, roof and any fixtures and fittings such as fitted wardrobes would be covered.
Whilst you are under no legal obligation to arrange landlords buildings insurance, it would be a prudent thing to do. This type of insurance will cover the building for a variety of things and will provide you with peace of mind. After all, the people living in the property will merely be tenants and some of them will not always take as much care as you would with the property.
There are many providers of landlords buildings insurance so it is a good idea to shop around for a policy that provides you with the cover that you require at an affordable premium. Whilst the level of cover may vary between different insurance companies, below are some of the things that may be covered: –
- Property damage as a result of the likes of fire, storm, theft, flood, riot, explosion, earthquake, lightning and accidental damage.
- Alternative accommodation may be provided if the property was not habitable as a result of being badly damaged.
- Public liability cover should a third party be injured or killed whilst at the rental property.
- Loss of rent due to property damage.
There may be a number of optional extras available such as contents cover, subsidence cover, legal cover to assist with the likes of claiming rent arrears, employer’s liability cover should one of your employees be injured at the rental property, personal accident cover for employees, equipment breakdown cover and home emergency cover should you need to call out say an electrician.
There are likely to be some excesses that you should make yourself aware of.
So, as you can see, a landlords buildings insurance policy can provide an extensive level of cover for your investment property.