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Why do you need contents insurance?

We often find that landlords don’t realise that contents cover can be an additional extra. The new Commercial Insurance Act puts the responsibility on landlords. For them to ensure that they have the correct cover for their property. It is now law that landlords are responsible if they are not insured fully in the event of an insurance claim.
 
Not all landlord insurance policies cover landlord’s contents. It is difficult to define what landlord’s contents are. In practical terms, imagine you were to turn the house upside down, the items that fell out would be included as contents. The building insurance covers fixed items such as fitted kitchens, bathrooms and carpets.
 

Are white goods covered for landlords contents insurance?

 
Not everyone’s insurance policy covers white goods. We have an exclusive policy with Aviva insurance which includes landlord’s contents cover up to £5,000. This includes white goods whether fitted or not. Not all policies are the same though. Some landlord insurance policies do not include contents cover or it may be an optional extra. It is so important that you insure your house correctly.
 
Are you a student landlord and have furniture? Is this covered in your landlord’s contents insurance?
 
Most if not all insurance companies would not cover furniture within the property. They would treat this as an added extra. It is therefore important that you check what the policy includes for a furnished property. Look for a policy that will replace belongings on an old for new basis. This means that your possessions will be replaced with shiny new ones should you make a claim. Most student landlords don’t realise that their furniture isn’t covered in the event of a claim against theft, loss or damage by fire. Think how much it would cost to replace such furniture for you?
 

Summary

 
I would suggest that all landlords have a minimum cover of at least £5,000 for landlords contents cover. It is important that the exact amount of goods in the property are insured. Also to consider is whether the insurance company accepts fitted or freestanding white goods. It is important that landlords check their insurance as all insurance companies can be very different in their cover. You can normally take out additional cover at very little cost. It will be a small price to pay for what could cost you thousands in the future. It is better to be safe than sorry.
 
Mark Harrington
 
Managing Director
 

The Difference Between Residential and Landlord Insurance

When you rent out a property, in whatever capacity, you need to have the right insurance in place for both you and your tenant.
 
Even if you’ve got residential insurance, it won’t be enough. Renting out a property brings a whole new set of risks with it. You need to be sure that your investment is as secure and as protected as possible.
 
Landlords insurance covers a whole range of risks that your residential insurance won’t. You run the risk of a claim rejection if you tried to claim on the residential insurance on your rental property.
 
So what are the main differences between Residential Building and Landlords Insurance?
 
Landlord insurance covers everything your residential insurance does such as buildings and contents. It can be tailored, though, and extended to cover tenanted property risks such as:
 

Re-housing Costs/Loss of Rent

 
This will cover if your property becomes uninhabitable due to insured events such as flooding or fire damage. Your residential insurance won’t cover this. Landlords insurance can also cover non payments by defaulting tenants. It also allows for vacant periods between tenancies.
 
Malicious Damage/Theft
 
Landlords insurance covers wilful damage caused by tenants, unlawful activities and theft. Residential insurance will only cover acts of vandalism to your property,
 
It’s advisable to thoroughly screen tenants before letting your property. Even so there’s no 100% guarantee that they will treat your property with respect. Landlords insurance gives you extra peace of mind that if your tenants mistreat your property, you’re covered.
 

Liability Cover

 
On the other hand, as a landlord, you have a duty of care to your tenants. Residential insurance public liability will cover you if someone injures themselves such as a tradesman or a guest. However, it won’t cover any accidents and injuries to your tenants. Serious injuries that result from landlord negligence like loose tiles, water leaks, broken floorboards or ripped carpeting could result in a hefty claim from your tenant. Without the right insurance, you could end up facing crippling costs that will affect your cash flow. Read more about the Human Habitation Bill and what it means for you as a landlord.
 

Legal Expenses

 
As your rental property qualifies as a business, you’ll need the right kind of insurance for legal liabilities. This is in the event that a tenant makes a claim against you. Or for you yourself if you intend to take a tenant to court for non payment of rent.
 
Landlords insurance may not be a compulsory legal requirement, but are you prepared to take the risk?
 
As landlords insurance specialists we can offer a tailored policy to cover all your requirements.
 

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