Landlord insurance

What is landlord insurance?

Landlord insurance is a new innovation in the housing market that is signing up loads of new landlords every year. Landlord insurance is a policy that protects landlords from the various elements of being a landlord from loss of rent to liabilities that could be thrust upon the landlord. If you are starting your journey as a landlord or if you are a landlord with plenty of properties, this guide will highlight why it is important to have landlord insurance.

Why do landlords need insurance?

Landlords need insurance because of the volatility of the property market. It is no longer enough simply to find a tenant if you are a landlord. You have to protect yourself from the buoyancy and the lows of the UK housing market. Here are a few other reasons why it is important to get landlord insurance:

• Buy-to-let: The buy to let property market is one of the most competitive ones around as landlords look for tenants to stay in their buy-to-let properties. If you have purchased a buy-to-let property, you need to protect yourself in case there is a problem with the tenancy. One of the key things about buy to let properties is the loss of rent that could happen or any reason. If you are relying on your buy to let property to give you a steady income, using the loss of rent feature in your landlord insurance policy will keep you financially safe. Some insurers go as far as protecting you for several months at a time.


• Commercial: Landlords of commercial units need to have landlord insurance because when you let a commercial unit, you are letting to a business that could be highly successful or that could be volatile. It is important to choose landlord insurance for commercial lettings because they can insure you for an even longer space of time than residential lettings.

What are the benefits?

From the moment you choose landlord insurance, the benefits of choosing landlord insurance will be felt in your life. Some of the good reasons why it is important to choose landlord insurance include:

• Free damage cover: Some insurers give free damage cover to landlords if the tenants cause damage by accident to your property. This is fantastic if you are planning a long career in letting out your home because you will be able to get value for money through the free damage cover element of your landlord insurance.


• Contents insurance: As a buy-to-let landlord, you are probably trying to make your property seem attractive to buyers by having lots of items within your home. Contents insurance is therefore critical to your buy-to-let property because you have to safeguard yourself against the probability of any damage coming to your items. Think about the type of furniture that tenants will be exposed on a daily basis that you have put there: this could be extra cabinets, stools, chairs, tables and bedside tables. By taking landlords contents insurance as part of your policy, you are being a smart landlord and giving more value to your property for future tenants.


• Financially flexible: Landlord insurance gives you the chance to pay in a lump sum or you can pay monthly. Depending on your circumstances, either option will make it easy for you financially because landlord insurance is one of the most affordable types of insurance in the market. Insurers know that many people want to get on the property ladder and being a landlord tends to be the first step. Be financially smart and choose a monthly or annual payment option for your landlord insurance payments.