A landlord needs to deal with many responsibilities. Not only must the requirements of individual tenants be addressed, but unexpected situations such as sudden repairs or overdue rent can often cause a great deal of frustration. These are some of the instances which can be addressed through the use of landlord insurance. Let us take a look at the theory behind this concept before examining the top providers across the United Kingdom and the advice to heed before committing to a specific firm.
Why is Landlord Insurance Necessary?
We can think of landlord insurance as an umbrella that will keep the policyholder protected from sudden expenses. In fact, there are many instances when this type of insurance is required by law. The most common reasons why one would require for this plan include theft, fire, an act of god (such as a flood), common repairs, an injury associated with the property and contents that may have been damaged. In many cases, the landlord will be responsible for a portion of the damages associated with such situations. Without insurance, he or she will be required to pay hefty out-of-pocket fees. There can even be times when this results in a breach of contract.
The Types of Landlord Insurance
As you may have guessed, there are a number of different policies which are all defined as landlord insurance. The most common variants can be found below:
- Landlord building insurance
- Contents insurance
- Portfolio insurance (for those who own multiple properties)
- Emergency coverage (as an addendum to standard building insurance)
- Legal expenses and rental guarantee coverage
Most basic plans are normally associated with only building and contents insurance. They will fail to address discrete needs such as theft or the event that a tenant suddenly stops paying rent. In addition, let us recall that every policy is associated with different maximum levels of coverage. These also equate to how much the landlord will expect to pay each month in the form of premiums. Higher levels are generally useful for expensive properties on in the event that the contents within a property a very expensive.
What to Consider When Choosing a Policy
Besides the level of maximum coverage, there are several other variables to account for. One important factor involves how many claims can be filed during a fiscal year and if thee filings will result in increased rates. In the same respect, find out whether you will be able to enjoy a no-claims bonus in the future. Other questions to ask are:
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How many forms of contact will you have with a representative?
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Will you be assigned a personal service representative or are only generic forms of help available?
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Can you upgrade or downgrade a policy if deemed necessary?
Knowing the answers to these simple questions can save you a great deal of time, money and consternation.
