Some insurance policies may look similar, but it’s worth comparing to ensure your investment has suitable protection. Property insurance for landlords can vary depending on your needs.
You might primarily be looking for protection from damages caused by tenants and financial support with legal issues. However, property insurance for landlords, as is the case for standard homeowners, can come with different covers as standard.
Depending on the tenant type or property type, some covers will be more important to you than others. As each landlord’s property portfolio is different, it’s hard to pinpoint what the ‘correct’ amount of cover can be. A comprehensive policy that covers many risks as standard might be what you need for peace of mind.
Insurance options for landlords
Do you let your property to a single household or multiple tenancies? If the latter is your answer, you may need insurance that is suitable for houses in multiple occupation (HMO). Will you be letting it on a long-term or short-term basis? Is there a chance it may become unoccupied for a period of time? If you specifically let to students, this can also impact your available options.
The terms and conditions of an insurance policy may also exclude certain scenarios.
This guide to insurance for residential landlords is here to help you find ways to protect your property investment and rental income.
Tenanted Property Landlord Insurance
A landlord insurance policy can include a combination of protection for the building and its contents. It can provide cover for basic damage, such as fire, flooding and escape of water. We believe that a comprehensive policy provides important protection for rental investments, which is why ours comes with 40 covers as standard.
A comprehensive policy can help protect against risks such as loss of rent, damage by tenants and unauthorised alterations.
Rent Guarantee Insurance
As a landlord, there is the risk that your tenants might fall into rent arrears. This is when your tenant cannot or will not pay the rent on time. Whether you have just one rental or a portfolio of properties, loss of rent can really damage your income.
It is best practice to conduct reference and credit checks to ensure that you are letting your property to someone reliable and trustworthy.
However, anyone can face financial difficulty at any time. To avoid losing rental income each month, rent guarantee insurance can help ensure that you still get paid. Our Rent Guarantee Insurance policy can also help cover legal expenses if eviction and recovery of the property become necessary.
Unoccupied Property Insurance
As with rent arrears, all landlords may run the risk of having an empty property at some point. Whether you cannot find tenants or are refurbishing your investment, it’s vital that your property is protected when empty.
In certain cases, you may decide to leave your property empty for a period before making it available again. You may be using this opportunity to redecorate after tenants have moved out, or you could be waiting for a renovation project to begin.
Whatever the reason, make sure that your asset is looked after while it is vacant with suitable unoccupied property insurance.
Our Unoccupied Property Insurance can be changed to Landlord Insurance once a tenant is living there again.
UK Holiday Home Insurance
A property used as a holiday home may be exposed to insurance risks related to being let short term. Whether for personal use, holiday let use or both, some holiday home insurance policies can offer more suitable protection than landlord insurance.
Airbnb Property Insurance
Similar to holiday home insurance, a property let via Airbnb can be exposed to risks specific to being let short-term. With different people coming and going and only staying for a short while, both malicious and accidental damage can be a concern. Take a look at Airbnb property insurance options to help you find suitable protection.
Overseas Holiday Home Insurance
If English is your first language, you may benefit from finding a policy with a UK-based insurance provider. Documents written in English and a UK-based claims service may help to provide you with peace of mind.
Intasure, which is also part of the Gallagher group of companies, is an established overseas property insurance provider with many years of experience in managing such business.
Second Home Insurance
If you have another home that isn’t permanently lived in, second home insurance may be more suitable than a standard home insurance policy. It can take into account that there are periods of time when the property is empty, but be sure to check the policy wording for the limits of this. If it sits empty for too long, then unoccupied home insurance might be more suitable.
The sole purpose of this article is to provide guidance on the issues covered. This article is not intended to give legal advice, and, accordingly, it should not be relied upon. It should not be regarded as a comprehensive statement of the law and/or market practice in this area. We make no claims as to the completeness or accuracy of the information contained herein or in the links which were live at the date of publication. You should not act upon (or should refrain from acting upon) information in this publication without first seeking specific legal and/or specialist advice. Arthur J. Gallagher Insurance Brokers Limited trading as Just Landlords accepts no liability for any inaccuracy, omission or mistake in this publication, nor will we be responsible for any loss which may be suffered as a result of any person relying on the information contained herein. FP986-2022