Do I need landlords insurance?

Accidents happen and it can be a costly mistake to overlook specialist landlords insurance. As standard homeowner property insurance is voided as soon as a tenant resides there, it is important that landlords have a good understanding of what insurance is available to them and how it covers them.

There are several types of landlords insurance which cover different aspects of owning a rented property. They include the following:

Landlord’s content insurance provides cover for damage and theft of contents (e.g., TV’s, carpets and sofas) but only when there has been ‘forcible or violent entry’ not when theft is committed by a tenant.

Legal expenses insurance helps landlords cover their legal costs should they enter into disputes with tenants.

Landlord home emergency protects against the cost of emergency repairs such as gas leaks and break-ins.

Landlord’s liability insurance protects landlords against claims from tenants or visitors who claim that a landlord’s property has been the cause of an injury.

Loss of rent insurance covers landlords financially if damage to the property means that it can no longer be rented for a period of time.

The amount of cover that you need depends on a number of factors but in most cases the insurer will bundle together different policies into one. It’s recommended that you avoid underinsuring, as although it might save you money in the short term, if disaster strikes, a theft occurs, someone is injured at your property or you are at a loss for income then you could find yourself in a financial mess.

For more information about the responsibilities of a landlord see our full length guide here.