What is Landlords Insurance?
Answers to Frequently asked questions about landlords insurance for the new landlord.
Can I just use a normal house insurance policy?
Normally no. One of the requirements of house insurance is that the owner occupies the premises. This is patently untrue with a landlord letting the property out.
Is it more expensive than house insurance?
That depends on the type of tenant that is in the house. For standard tenancies (those where the agreement is with the tenant and the tenant pays the rent), the premiums are not going to be substantially in excess of a normal house insurance.
Are there bedroom-rated contracts available?
Virtually all landlord insurance contracts are based on a sum insured basis. There are one or two where a large fixed sum insured is provided, but of course the premium is based on an average sum insured for the type of property. In general landlords do not supply tenants with thousands of pounds worth of contents so a bedroom rated contract for contents sums insured is inpracticable.
Do I have to advise the insurer of a change of tenants?
If the type of tenant remains the same and the tenants hasn't any specifically poor insurance rating factors then, strictly, no. However we recommend that the insurer be contacted just to confirm the matter.
What happens if the tenant moves out?
Normally you do not have to tell the insurance company until the period allowed between tenancies (typically 30 days) has expired. Once that happens cover is likely to become restricted to 'dry perils' and the underwriters may re-rate the property as 'unoccupied' until a new tenant moves in.
Do I need the extra policies offered?
That depends on whether you feel that they will be useful! Normally there is no requirement that an extra policy is taken out.
Typical extra policies include landlord legal expenses insurance, rent guarantee, home emergency.
I have another query
Please do not hesitate to contact us on 0844 8262616. We would be only too pleased to answer your question.