Landlord insurance ... confusing!!!

Icey77

Good morning,

Could anyone give a bit of advice on Landlord insurance? There seems to be lots of different parts to it and I'm more than a little confused!

I have a 1 bedroom purpose build flat, it is lease held so all buildings insurance is dealt with via the mamagement fees from the management company. The flat will be let unfurnished and I would expect that the tenants would be employed people.

What should I be looking for in a policy?

Rent guarantee? accidental damage, malicious damage, contents?

Obviously I am trying to get the balance between cost and insuring against the most common problems that landlords experience!

Any advice or personal recommendations/experience of companies would be appreciated!

Many thanks!

G_M

If buildings insurance is provided by the MC, then a) you may need to consent to let from them or the freeholder (or it may be forbidden!) - check your lease. and b) you need to check the policy they provide - ask for a copy - to see what risks it covers and whether it EXCLUDES tenants.

Rent guarantee insurance - can mean loss of rent due to damage to the property or some other risk covered by the policy (building uninhabitable due to a fire). Again, read the policy.
Or it can mean loss of rent due to the tenant defaulting (absconds or just doesn't pay). This is a seperate specilist insurance, usually with conditions like the provider must vet the tenant themselves.

Contents is obviously your responsibility. If you supply the property furnished or part-furnished and want to cover your stuff, you need LLs contents cover and yes, this will usually include malicious damage by tenants (but check the cover as you would any other insurance - policies vary!)

Landlordzone has more info and links to insurers. Your LLs Association will have discount deals with insurers.

kmmr

I'd love to get an answer to this as well. Plus the issue around where the line is as to what is covered normally by building insurance (ie, fitted kitchens, bathrooms) and what is contents. The line is a bit blurred I think.

smaysey

The best way I've had the difference in insurances described to me as this:

Imagine that you've tipped the property upside down. Everything that moves about = contents insurance. Everything that stays where it is = buildings insurance.

The only grey area with this is the carpets and a lot of the brokers I deal with differentiate by whether the carpet is glued down or not.

Icey77

Absoutely doing it by the book, I have just written a cheque to the management company and also to the mortgage company for them to give me permission to let the property.

Also, the property will be let unfurnished so only the fitted kitchen and bathroom to worry about. And carpets, front door, windows etc etc!

I suppose what I'm asking it which insurance is vital to have and which is nice to have if I can afford it?

Thanks!

G_M

Icey77 wrote: »

Absoutely doing it by the book, I have just written a cheque to the management company and also to the mortgage company for them to give me permission to let the property.

Also, the property will be let unfurnished so only the fitted kitchen and bathroom to worry about. And carpets, front door, windows etc etc!

I suppose what I'm asking it which insurance is vital to have and which is nice to have if I can afford it?

Thanks!

Unless a condition of mortgage etc, ALL insurance is optional! It's like gambling. You pay out yearly and sometimes hit the jackpot (when the house burns down and the insurance pays out!). Normally, you just lose your 'stake' each year. How 'risk averse' are you?

Fitted kitchen/bathroom = buildings cover.So are doors and windows. And carpets if fitted.

So contents insurance sounds like a no-brainer!