photo credit: JamesCohen
Letting out a property can be problematic, your landlord insurance policy will give you some peace of mind, but there are additions you can make to many policies to give you extra benefits. We’ll look at some of these here.
Liability Insurance – This is often found bundled with a Landlord Insurance policy but if it isn’t it’s a very useful addition to have. This will cover you if a tenant attempts to claim damages from you for an injury or illness caused by you neglecting to maintain the property. This may include medical bills and legal fees too, both theirs and yours and can end up running into many thousands of pounds.
Rent Guarantee Insurance – This will cover you in the event that a tenant refuses to pay the rent, or disappears owing you money. If you have a mortgage on the property and you rely on the rental income to pay this, then this addition may be very valuable to you. Some Rent Guarantee Insurances will also cover you if your property is empty as long as you can prove you are doing everything possible to attempt to secure another tenant.
Legal Cost Insurance – This covers you for having to take tenants to court for non-payment of rent, or if you need to get a court order to evict squatters. It may also cover you if you need to trace missing previous tenants that owe you rent payments and left the property without informing you.
Emergency Assistance Cover – This addition to a policy provides you with a 24-hour help line number for you to give to your tenants. If there is a problem, for example a burst pipe, they will immediately be able to get help and therefore hopefully reduce any damage. This is especially useful if you don’t live near your rental property, or for other reasons you are not easily contactable or able to immediately get to your property.
Malicious Damage Cover – This is cover for intentional damage to your property and the contents. This may also include damage caused not by maliciousness, but by the tenant doing a bad DIY job without your consent. Perhaps they attempted to alter the structure of the house, or they have used fabric dye to try and change the colour of your carpets. As a Landlord you need to be prepared for any eventuality. People can and will do the strangest things!
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