Gone are the days when only niche companies offered bespoke Landlord’s insurance. Price comparison websites offer the Landlord the most competitive rates available, but is Landlord’s insurance really necessary?
Some Landlords may assume that they would cancel their Buildings & Contents Insurance and the incoming Tenant would take out insurance that would provide sufficient cover. However this would not provide for the exterior of the property or any of the Landlord’s contents such as kitchens, sanitary ware, carpets etc should they need replacing due to fire, flooding or other damage.
Having Landlord’s Building and Contents insurance protects both the exterior and interior of the property, without the Contents element, the Landlord could be left facing hefty replacement costs for major items. The Landlord should also consider the level of Contents cover; the standard value may need to be increased for higher end properties.
The ingoing Tenant would take out contents insurance to cover their items in the property and this may cover accidental damage to the fixtures within the property.
Leasehold apartments may not need Buildings cover, as this could be covered within the Freehold or Service Charge unless the Head Lease prohibits this cover for owners renting their properties out.
The option of leaving the owner occupier insurance in place when the property is tenanted would render the policy void, so arranging Landlord’s insurance should be a priority.
Your current home insurance provider may be able to convert your policy to a Landlord’s Building and Contents, providing you with the necessary cover should you need to claim.
Fran Mulhall MARLA