Do I really need insurance on my buy-to-let property?
06-14-2015
Sponsored by British Gas
By Marc Shoffman for Thisismoney.co.uk
My tenant has contents insurance to cover any burglaries or damage to their items, so what do I need landlord insurance for?
Tenants: Most renters have contents insurance to protect their belongings in case of a burglary
Marc Shoffman, of This is Money, replies: Insuring somewhere you are not even living in may seem like a waste of money, but it is actually your property you are protecting rather than physical items.
Tenants need to arrange their own contents insurance, but you need buildings insurance.
If there is major damage to a property such as a burst pipe, or a fire, the landlord is likely to have to pay the bill. Repairs for a burst pipe could run into thousands of pounds and a fire could destroy your property.
If you have the right insurance then this would be covered.
Landlord insurance can provide protection from leaks, subsidence or vandalism as well as storms and floods.
It is important to check your cover so you know what is protected. You can get landlord insurance just for a building, or also to cover some contents, and if a tenant is injured on your property where you may be held responsible.
You will need specific landlords’ building insurance and if you own a flat it may require block of flats insurance that will need to be sorted by the freeholder.
Mark Whitbread, director of British Gas Home and Landlords Insurance, replies: Ordinary home insurance does not meet the needs for rental properties, which is why landlords require specialist cover.
Your tenant may have contents’ insurance, but this does not protect your investment as a landlord.
Landlord building insurance can protect your property from major events like floods, fire damage or burst pipes so that you are not left out of pocket.
A landlord's insurance policy can provide a number of other cover options such as public liability insurance. This will help protect you against compensation claims if someone was injured.
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