Key takeaways
- Property owners insurance key cover includes: buildings insurance, landlords contents insurance, loss of rent, and landlord liabilities
- Without adequate landlord insurance, property owners could face significant financial losses from property damage and loss of rent
What is property owners insurance?
"Key covers that every landlord should consider includes: buildings insurance, landlords contents insurance, loss of rent, and landlord liabilities"
Why landlords need property owners insurance?
Without adequate property owners insurance, landlords could face significant financial losses. For example, a fire or a flood can cause devastating damage and leave a property uninhabitable, resulting in months of lost rental income. Anyone that owns property whether they operate as a landlord for a single residential dwelling or they own and manage hundreds of commercial properties across the UK should consider landlord insurance.
What does property owners insurance typically cover?
Cover can be tailored to meet your specific your specific requirements. Please complete our online application and upload your current landlords insurance policy. Alternatively, send your current documentation to [email protected]
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Buildings Insurance
Buildings insurance (type of property insurance) will protect your company’s buildings against damage from a range of insured perils. Examples of such perils can include fire, theft, storm, flood, escape of water, impact, explosion and riot. Building insurance cover can provide for the full cost of rebuilding, including any permanent fixtures.
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Landlords Contents Insurance
Landlords content includes anything owned by your company within the property, such as the furniture that you have supplied to your tenants. Landlords’ contents insurance will protect your company’s contents against loss or damage from a range of insured perils. Examples of such perils can include fire, theft, accidental damage, storm, flood, escape of water, impact, explosion and riot.
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Loss of Rent Insurance
Loss of rent provides protection for the financial loss you may suffer in the event that you are unable to rent out the property due to an insured loss. Coverage can be tailored for both the rental income and the indemnity period, often ranging from 12 to 36 months, depending on how long it takes to rebuild your property and re-tenant.
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Public Liability Insurance
Public liability insurance, also refered to as property owners liability, will protect against claims arising from injury or property damage of persons other than your employees in the course of your business. The business insurance will protect against legal costs incurred in defending allegations and compensatory damages arising from any judgment, award or settlement.
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Employers Liability Insurance
Employers liability insurance will protect against claims arising from injury or illness of your employees. The business insurance will protect against legal costs incurred in defending allegations and compensatory damages arising from any judgment, award or settlement.
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Optional Extras
Optional coverages include accidental damage, malicious damage by tenants, and legal expenses insurance.
Factors affecting the cost of landlord insurance
There can be several factors that influence landlord insurance costs:
- Property Location: Higher-risk locations (e.g., areas prone to flooding or crime) may attract higher premiums.
- Tenant Type: Student or social housing tenants may impact premium pricing.
- Security Measures: Enhanced security reduces risks and potentially lowers premiums.
- Claims History and Property Condition: Fewer claims and well-maintained properties typically result in lower insurance costs.
Landlords can often lower premiums by improving security, performing regular maintenance, and carefully selecting tenants.
How to correctly value your buildings and contents?
Underinsurance remains a common theme with the cost to rebuild the property steadily increasing. Most insurers maintain a condition of average clause, which means if the sum insured for your buildings is less than the total cost of rebuilding, they can reduce the claim by the percentage you are underinsured. For example: if the sum insured for a building is £200,000 and the true value to reinstate the property is £300,000 and you submit a claim for £100,000, insurers may only have to pay £66,666 (reduced by the percentage that you are underinsured).
Can you provide landlords insurance for unoccupied properties?
Can you provide landlords insurance for accidental damage?
Can you provide landlords insurance for flat roofs?
Should we insure our tenant's improvements under our policy?
Conclusion
For further details on how we can help, please click here to contact our specialist team today
Written by Simon Taylor
Simon Taylor is a respected senior industry professional and a Chartered Insurance Broker with over 20 years’ of experience in the commercial insurance sector as an underwriter, broker and director.