As a landlord you may already have or even be considering taking out landlords insurance cover.
The risks associated with let properties are significantly different to owner occupied properties. For this reason, it may take you a little longer to review the specific type of landlords insurance policy you require.
Our guide to landlords insurance hopes to make this process as easy as possible. It will provide information to help you make an informed decision when you finally come to make a purchase.
Commercial Insurance vs. Let Property Insurance
As a basic definition, let property refers to domestic property, whilst commercial property refers to premises occupied by a business.
One of the main differences between commercial and let property landlords insurance is that commercial insurance generally covers higher sums.
This is because there is usually more activity at a commercial property which increases the element of risk. As part of this, there may also be a few additional questions that an insurer will ask a commercial landlord in order to assess what operations take place at that property and to determine the level of risk involved.
Glossary of key terms:
Buildings Cover: The main insurance perils often insured by buildings cover include fire, smoke, burst pipes, malicious damage and even theft. Additional covers including FLEEA cover (Fire, Lightning, Earthquake, Explosion & Aircraft). You may wish to discuss this directly wish us to fully understand the level of cover it offers.
Property Owners Liability: This could prove an essential part of a landlords insurance policy because, as a landlord, you risk being held liable for a range of accidents during your ownership of that building. This policy could cover you against your tenants suffering an illness, injury or damage to their personal property as a result of health and safety failures within your property. It may also provide protection for members of the public that become injured as a result of your property.
i.e. a roof tile falling and injuring them.
Please note that Property Owners Liability is also commonly referred to as Public Liability Cover.
Loss of Rent: Does exactly what it says on the tin; particularly useful if your property suffers damage including a fire or flood which forces your tenants to move out and you claim for this loss or damage via your buildings insurance.
Contents: If you have particularly valuable possessions in your property, such as expensive furniture or other fixtures and fittings, this policy could appeal to you.
If your contents were to become damaged in some way, it could cost you a lot to replace or repair these. Contents cover could help to transfer this risk and can usually be provided on an ‘all risks basis’ or on a ‘fire or perils basis’ only.
Landlords Fixtures & Fittings: Can cover against damage to the landlord’s fixtures and fittings.
There are a few other optional add-ons that are often made available as part of an overall landlords insurance package. You might like to consider the following:
- Theft of Keys
- Exhibitions Cover
- Loss of Metered Water
More Information and Quotes
This guide is part of our series on insurance for landlords. For further product information, links to our guides or to get a quote, please visit our landlord insurance section here. You can also call our UK based sales team on 08081686868.