A Guide to Choosing Landlords Insurance

Most people have some kind of home insurance. How comprehensive this insurance is will entirely depend on your needs. Some people opt for full coverage of both their property and their contents, whilst others will choose one or the other. Insurance needs will vary from person to person; the type, size, value and location of your property will all play a role in determining what kind of cover is required. For example, a house located in Cumbria may be more at risk of flooding than an apartment in London.

Insuring a Rental Property

Apartments and houses tend to be insured differently, and this is particularly true if the property in question is to be let. A rental property requires additional coverage to be included, based on the fact that the person occupying the property will not be its owner. Insurance for rental properties, also known as ‘Landlords Insurance’, will cover many things that simple home or content’s insurance will not. These things may include:

  • Provision for alternative accommodation for the tenant in the case of the property becoming uninhabitable.
  • Cover for the building and its contents during the times it is left vacant.
  • Cover against damage caused by tenants.
  • Provision in the case of a tenant not paying their rent.

Why is Landlord’s Insurance So Important?

In a freehold property which is occupied by the owner, the repercussions of having insurance (or not) will be felt only by the owner. Put simply – if your house burns down and you don’t have insurance, you will be the only person affected.

However, in the case of rental property, if something goes wrong it’s not just the landlord who will suffer the consequences. The tenant will also have to deal with the aftermath of any incident which affects the property or its contents.  But in cases of accidental damage or loss, whilst the inconvenience will affect both parties, the cost will usually fall to the landlord. And a landlord who doesn’t have insurance may find that they are unable to meet such costs, which could lead to the loss of the property and even a potential lawsuit from the tenant.

Therefore, whilst landlords insurance isn’t a legal requirement, it is strongly advised that you purchase it. If you’re looking for comprehensive landlords insurance, why not visit http://www.towergateinsurance.co.uk today to talk to an advisor about your needs.

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