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The Importance of Building Insurance For Landlords

November 16th 2019
By: Thomas Morris
The Importance of Building Insurance For Landlords

Given the unpredictable nature of the role, it is easy to see why many landlords arrange building insurance. Of course, many mortgage providers only provide a buy-to-let mortgage on the condition of the landlord arranging building insurance. Therefore, most landlords should have this cover in place, but do you know how important having the right protection is?

You have a lot of costs to cover as a landlord, and it is natural landlords will look to lower their costs. However, you cannot compromise on quality or assurance. You must look for value for money when it comes to finding the best building insurance for your needs.

Do you have the right insurance in place?

Most landlords building insurance policies contain an element of public liability cover, but please check to make sure you have this in place. This cover protects you against any claims made by people who suffer an injury on your property. These claims can be costly, and if you don’t have sufficient cover in place, you may find yourself in financial difficulty. Even if you are eventually found not to be responsible, the cost of defending yourself will stretch most landlords, so check you have adequate cover.

Each insurance provider offers its policies, and some may even provide a range of insurance policies. However, you want to ensure the following aspects feature in your protection:

  • If anything happens to the structure of the property or the fixtures, they can be replaced, rebuilt or repaired
  • Subsidence cover
  • Protection in the case of burst pipes due to freezing temperatures
  • Flooding and fire damage
  • Accidental damage to tanks, pipes or drains which convey services in or out of the property
  • A loss of rent due to an insured event such as flooding or a fire
  • Malicious damage by tenants, and guests of tenants

Having this protection is an excellent comfort for landlords. You may wish to arrange further insurance, such as protection if your rental property is empty or a tenant doesn’t pay on time. You should also arrange insurance which covers any of your contents in the property while advising tenants to organise their contents insurance.

If a problem arises, you will be glad of insurance

While the cost of insurance may seem like a burden to some landlords, the expenses which may arise if you don’t have sufficient insurance in place are even higher. If a problem arises, you will be glad you have suitable cover in place, helping you to maintain your business with a minimum of disruption.

It should go without saying building insurance is an essential component of a landlord’s arsenal,” said Thomas Morris Sawtry Branch Manager Tom Mollett. “With the potential for so many things to go wrong, it is vital you are protected. If you would like to discuss which insurance is best for you, or you need help managing your rental property, we can help.”

Letting your home is stressful, but with the right support, you can make the process easier. To book a valuation appointment at a time that is of suitable to you, click here. Alternatively, you can phone our Sawtry branch, managed by Tom Mollett by calling us on 01487 831333.