In the event of an unexpected incident such as fire, flood or vandalism that leaves their rental property uninhabitable, landlords can face lost rental income.
Loss of rent cover can help protect landlords from financial loss in the event of their buy-to-let property becoming uninhabitable due to an insured event.
As a landlord who relies on rental income to cover expenses, loss of rent insurance can be important protection.
Find out more about loss of rent insurance for landlords, including why and when a landlord may need insurance to cover loss of rent.
Our comprehensive Landlord Insurance includes loss of rent cover as standard.
What is loss of rent insurance?
Loss of rent cover helps to protect you and your income should your property be left uninhabitable due to an insured event, for example a fire or flood. Loss of rent insurance can help to cover lost rental income while repair or rebuild work is undertaken on the damaged property.
Loss of rent cover can also help to cover the cost of similar accommodation for your tenant if the damage is extensive and they have to leave the property while work is carried out.
This type of insurance does not cover a tenant defaulting on rent – that can be covered by rent guarantee insurance.
What does landlord loss of rent insurance cover?
Loss of rent insurance for landlords typically covers:
- Financial loss: If your rental property becomes uninhabitable due to an unexpected event, like a fire or natural disaster, you may lose rental income for a period of time while the property is being repaired. Loss of rent insurance can provide you with financial protection by reimbursing you for the rental income you would have earned during the period of repairs or renovation.
- Alternative accommodation: If your tenants are forced to leave the property as a result of the insured event, you may need to provide them with temporary housing. Loss of rent insurance can also help with such additional expenses.
These are brief product descriptions only. Please refer to the policy documentation paying particular attention to the terms and conditions, exclusions, warranties, subjectivities, excesses and any endorsements.
Why do I need landlord insurance to cover loss of rent?
If your tenants are forced to move out as a result of an event that leaves the property in an uninhabitable condition, a landlord can face a loss of rental income coupled with costs associated with repairing or rebuilding a property. This is why it’s included with our comprehensive Landlord Insurance policies as standard.
If your property is destroyed by a fire, for example, you may not receive any rental income during the rebuild or repair. Repairs may take several months if there is extensive damage to the property.
As a landlord, you are bound by law to ensure your rental property is fit for habitation. After an event such as a fire or a break-in, it’s important you determine that the property is safe before you allow your tenants to return. If not, you may want to find alternative accommodation for your tenants while the property is restored to a habitable standard.