If you are a landlord and rent out properties whether they be domestic or commercial you need to arrange Landlords Insurance or more commonly known as Property Owners or Building Owners Insurance. These are specific policies for landlords. A policy will include some or all of the following:
Buildings Insurance – to cover the building for it’s rebuilding cost for either standard or extra accidental damage cover. The policy normally excludes subsidence/heave/landslip and terrorist cover but these can be added on for additional premiums.
Contents Insurance – the cover can be extended to include cover for contents but the basis of cover would be indemnity ie wear and tear would be taken into account. The policy would cover the landlords contents only and if the property is unfurnished then the tenant would be responsible for insuring their own contents.
Loss of Rent Insurance – covers you against loss of rental income should the property be uninhabitable due to an insured peril. The sum insured should be based on the rental value and the length of lease.
Liability Insurance – this is normally included within a standard policy and provides legal liability cover should you cause death, injury or loss to a tenant or their property due to your negligence as a landlord. The policy can be extended to include Employers Liability cover should you have any employees, eg a cleaner.
Legal Expenses/Rent Guarantee Insurance – some companies offer cover for legal expenses and/or non payment of rent. This means that you continue to receive rent whilst you pursue legal proceedings against the tenant.