If you provide contents in one or more of your rental properties for the use of tenants you will wish to consider arranging landlords contents insurance to provide you with peace of mind that should something be damaged or stolen then there is insurance cover in force to provide funds towards replacing the damaged/stolen item(s). It should be noted that there are many providers of landlords contents insurance so the level of cover may differ between various companies.
However, what constitutes the contents in the property? Well, if the property were turned upside down everything that fell out would be the contents. For instance, such things as chairs, sofas, tables, beds, free-standing wardrobes, free-standing cookers, fridges and washing machines, carpets and garden furniture kept outside to name but a few. It should be noted that this does not include any contents belonging to the tenants.
Landlords contents insurance can also be included within a landlords insurance policy that also includes landlords buildings cover. It will provide cover for damage to the contents caused by such things as fire, storm, flood, subsidence and theft. You may also be covered for loss of rent and towards providing alternative accommodation should the tenants need to move out. Cover can sometimes be provided if the property has been left unoccupied for up to 120 days so is ideal for student lets.
You may be surprised when adding up the value of all the contents in your rental property just how much they are worth so, whilst there is no legal requirement to take out such cover, it would be a sensible course of action. When calculating the amount of cover you require it would be a good idea to base the figure on the replacement value of the items as many insurance companies will provide cover on a “new for old” basis.
Landlords contents insurance can also include public liability cover (landlords liability insurance) should a third party be injured or killed whilst at the rental property.
An optional extra often available is accidental damage cover for your contents so that if one of the tenants were to accidentally or maliciously damage the likes of a piece of furniture you would be covered. An excess is often applicable.