A landlord's insurance policy is not
a legal requirement, although not owning one would be very
foolish! Any business faces risks on a daily basis and
owning a second house as an investment is no different. A
fire or robbery may destroy your nest egg and the hard work
you have put into it. With let properties becoming an
increasingly popular method of saving for the future, it
makes sense to protect it! Insurers have recognised the need
for Landlord's insurance and as a result have developed a
policy to cater specifically for landlords.
A landlord's insurance product consists of a number of
insurance products bundled together. If you plan to be, or
are a residential landlord you would insure the building and
any of your own content left in the property. An example of
what would be covered may include (but would not be limited
to) the building, any fitted interior units, and other
possessions. A landlord's insurance policy would also
provide cover against fire, theft, vandalism/malicious
damage, leakages, smoke damage, subsidence, burst pipes,
impact from vehicles, falling trees, animals, aircraft,
aerials and masts. You may also want to consider a policy
which includes items such as business interruption and
liability.
Commercial landlords is slightly different in that the
landlord is responsible for insuring the building and
claiming premium payments from the tenants as business
tenants normally be charged (and expect to pay) for the
building insurance. In addition a commercial landlord would
also need liability insurance, legal cover, debt management
and other bespoke insurance policies.
