Do I really need landlord insurance?

The perks of securing a buy-to-let mortgage and becoming a landlord are many.  The security, flexibility and control of owning a property asset or investing in an already growing portfolio are just some of the reasons why individuals from all walks of life pursue a full- or part-time career as a landlord.

As a UK landlord, you’ll have many legal and moral obligations to fulfil to keep your property occupied and the tenants safe, secure and well cared for.

Although not a legal requirement, taking out landlord insurance can be a beneficial step in the right direction for first-time landlords and investors with a bursting portfolio of properties. Read on to discover the many advantages of landlord insurance.

Enjoy essential coverage should the worst happen

Landlord insurance is more comprehensive than many people think. In essence, it is very similar to the policy you take out when you insure your residential property.

It’s essentially designed to keep your rental property safe, covering you for damage (including acts of vandalism and natural disasters), legal costs and loss of income. The more comprehensive landlord insurance products provide additional cover for employers, contents, rent guarantees, and home emergencies.

Cover depends on the type of landlord insurance you obtain. But with the wide variety of landlord insurance products out there, choosing a fitting policy for you and your circumstances can be tricky. Simply Business offers some great advice for making the right decision:

“The amount of landlords’ building insurance you take out should be based on the rebuild value of your property. This amount is different from the market value: it’s the cost of rebuilding your property from scratch, including labour and materials. If you’re struggling to accurately estimate this, you can hire a surveyor to help. You should base the amount of landlords’ contents insurance you take out on the cost of replacing all of your contents.”

Protect your property portfolio

Even in its most basic form, landlord insurance offers vital coverage for landlords looking to protect their investment. After purchasing a buy-to-let property, it can often be unnerving to hand over the keys to a tenant, even if the tenant is trustworthy and responsible.

There are several challenges that you may have to overcome during your time as a landlord. But with landlord insurance, you can rest assured that your property – including the building and its contents – is well looked after.

Give yourself better financial security

A vacant, untenanted property is every landlord’s worst nightmare. An unoccupied property after all will cost you a lot of money, with the property owner responsible for keeping up with those buy-to-let mortgage repayments.

If you take out landlord insurance with the right coverage, you never have to lose any sleep over how you’ll foot the bill for mortgage repayments if your property suddenly becomes untenanted or remains vacant.

Many landlord insurance products protect their policyholders from loss of income, which means your insurance provider will cover your property’s rent for a set period.

Make repairs and maintenance a breeze

Depending on your tenancy agreement, you may be liable to complete repairs and maintenance to your rental property. Emergency repairs can be unwelcome surprises for landlords, but if your tenant causes damage to your property, any repairs or replacements could be covered by your insurance policy.

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