If you own a property or properties that you intend to rent out to tenants, you will need to take out landlords insurance. Although doing so is not a legal requirement unless you employ anybody in connection with your rental business, not doing so means that you will be taking a huge and unjustifiable risk.
Landlords insurance can be either basic or it can cover a broad number of items. At its fundamental level it will cover the building itself against damage caused by fire, vandalism, subsidence and all the other things that can damage property. The maximum level of cover is up to the cost of rebuilding the property. The cover includes any accident caused by your tenants and optionally you can insure against deliberate damage caused by your tenants.
If you visit Towergate insurance this will provide cover for many different insurance types so make sure you visit the site to get full details on landlords insurance.
If you are renting out your property as a furnished let then, assuming that the furniture is of a reasonable standard, you might be advised to take out contents insurance too. This cost of this will very depending on the level of your cover, but there is no need to include the cost of carpets and domestic appliances as these are covered in the building insurance.
You should also take out landlord’s liability insurance. This is a legal requirement if any people are employed by you in relation to the let, and anyway is worthwhile as it protects you against any claim a tenant might make against you.
Many landlords also include a rent guarantee which insures them against the loss of rent due to rent arrears or in the case of the property becoming inhabitable. This is particularly important if you are in any way dependent on the rent, for instance to finance a buy to let mortgage.
Finally you might also consider squatters insurance. As the law stands in the UK, squatters have a number of rights that makes evicting them very difficult. Squatters in your property can ruin your business. Squatters insurance provides finance for the cost of eviction.
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