Landlord insurance---Should I bother?

Ozret

I've been letting out my flat for the past 5 years. I've a new tenant moving in this Friday.

Up until now I've never bothered with landlord insurance. Primarily as the buildings insurance is dealt with by the flats' Management Company, I pay for insurance in case the tenant is unable to pay the rent. The kitchen white goods are covered a Domestic & General policy. The flat is let 'unfurnished' barring the white goods.

I've run a check through GoCompare, the premium ranges from £109-£175.

Therefore, I'd like your opinion on whether I should bother with Landlord Insurance.

TIA

bbk87

Ozret wrote: »

I've been letting out my flat for the past 5 years. I've a new tenant moving in this Friday.

Up until now I've never bothered with landlord insurance. Primarily as the buildings insurance is dealt with by the flats' Management Company, I pay for insurance in case the tenant is unable to pay the rent. The kitchen white goods are covered a Domestic & General policy. The flat is let 'unfurnished' barring the white goods.

I've run a check through GoCompare, the premium ranges from £109-£175.

Therefore, I'd like your opinion on whether I should bother with Landlord Insurance.

TIA

I would check the buildings insurance that is dealt with by the management company to see what that covers. As it may cover less than a normal landlord insurance policy. Also, does the management co's building insurance refer to the building as a whole, or individual flats?

Landlord insurance policy is good for if, as you say, the tenant cannot pay their rent, or if the tenants need alternative accommodation due to a escape of water or something, then you'd get loss of rent covered.

anselld

Can you afford to pay up if any of the insured events happens in the absence of insurance?
If you can't then you *need* insurance.
If you can then it all depends on your appetite for taking on risk.

Leven

If tenants need to be temporarily accommodated elsewhere due to, for example, a water leak, does the landlord have to pay for the alternative accommodation or is it simply the case that the tenant pays no rent until the property is habitable again and pay for their own temporary accommodation?

The answer to this question will help me to decide if Landlord insurance is worth having.

bbk87

Leven wrote: »

If tenants need to be temporarily accommodated elsewhere due to, for example, a water leak, does the landlord have to pay for the alternative accommodation or is it simply the case that the tenant pays no rent until the property is habitable again and pay for their own temporary accommodation?

The answer to this question will help me to decide if Landlord insurance is worth having.

I cannot confirm, I think it depends on the terms of the agreement you have.

However, if my flat had a water leak which meant I couldn't live here for a month or two, I certainly would not pay for the rent on the flat to the LL AND fork out extra money for alternative accommodation.

I have seen claims where the landlord has offered to waive the rent for the tenants, so they can pay for alternative accommodation, and the landlord claims the loss of rent back from insurers.

Some of the bigger water leak claims can go on for months!

Guest101

Leven wrote: »

If tenants need to be temporarily accommodated elsewhere due to, for example, a water leak, does the landlord have to pay for the alternative accommodation or is it simply the case that the tenant pays no rent until the property is habitable again and pay for their own temporary accommodation?

The answer to this question will help me to decide if Landlord insurance is worth having.

Tenant carries on paying rent

LL pays for temporary accomodation

Ozret

anselld wrote: »

Can you afford to pay up if any of the insured events happens in the absence of insurance?
If you can't then you *need* insurance.
If you can then it all depends on your appetite for taking on risk.

I suppose for less then £200 it's a bit of a no-brainer. Plus, I suspect, I can put it against my tax returns