Landlord insurance

lorrainp

Hi,

Can anyone tell me if Landlord's insurance is mandatory? I was under the impression that it is not. I do not currently have any.

I own a leasehold flat with no gas supply. It lets readily, and my agent is excellent at finding good tenants - I have had no problems (so far!) with tenants' behaviour or with them paying their rent on time.

What are the benefits of landlord's insurance in my situation? And would you recommend that I take some out?

On a related subject, if I were to buy a second similar BTL flat, do landlord insurers generally offer a package that will cover both flats on a single policy?

Thanks in advance.

theartfullodger

Not mandatory unless your mortgage (they do know you rent....) required it.

Extremely advisable to get some sort, particularly for public liability.

So when the place burns down, tenants 'orribly maimed, all caused by electrical fault, your negligence, who or what will pay?

ProDave

The benefits of "landlord insurance" is that it will pay out in the event of a claim.

If you only have standard residential insurance and not told them you are letting it, and the tenant burns it down, you might find you are not covered.

LL insurance also often covers loss of rent if the property becomes inhabitable, and the cost of your legal obligation to re house the tenant.

lorrainp

ProDave wrote: »

If you only have standard residential insurance and not told them you are letting it, and the tenant burns it down, you might find you are not covered.

I don't have any insurance. The buildings insurance is provided by the freeholder, and I think the tenants are responsible for insuring their own contents, no?

So, as the flat is let unfurnished, the only contents I would need insured would be the kitchen and bathroom, and I think (under a normal residential insurance policy anyway) those would be covered under the buildings insurance rather than contents. Does landlord insurance cover kitchen & bathroom fittings / units? I'm not that bothered about those, as they are old and I'm planning to replace them at some point anyway. I guess an insurance payout would be useful in contributing to the replacement costs in that case though. :think:

So, a few scenarios:

1. There is a fire in the flat caused by faulty electrics. I am therefore liable. The fire spreads to other parts of the building and some repairs and renewals are needed in those other areas.
Would public liability part of LL insurance cover me for any claims against me, and the cost of repairs both inside and outside my flat?

2. There is a fire in the flat caused by the tenants leaving a candle or cigarette unattended. The tenants are unable or unwilling to pay for the repairs, and the repair costs are greater than the deposit I have from them. Would the LL insurance pay out for the repairs, and/or cover me for legal costs of pursuing the tenants for the costs?

3. There is a fire in the building caused by something outside of my flat, say an electrical fault in the common areas, but my flat has some fire damage and the tenants have to move out while the repairs are done. Would the freeholder's buildings insurance cover the costs of repairs and temporarily rehousing the tenants?

4. My tenants damage the kitchen, bathroom or flooring, either accidentally or maliciously.
a) The cost of the damage is less than the deposit that I hold from them. LL insurance wouldn't pay out in that case I think, as I should deduct the cost of repairs from the deposit, yes?
b) The cost of the damage is MORE than the deposit that I hold from them. Would LL insurance pay out?

Cakeguts

lorrainp wrote: »

I don't have any insurance. The buildings insurance is provided by the freeholder, and I think the tenants are responsible for insuring their own contents, no?

So, as the flat is let unfurnished, the only contents I would need insured would be the kitchen and bathroom, and I think (under a normal residential insurance policy anyway) those would be covered under the buildings insurance rather than contents. Does landlord insurance cover kitchen & bathroom fittings / units? I'm not that bothered about those, as they are old and I'm planning to replace them at some point anyway. I guess an insurance payout would be useful in contributing to the replacement costs in that case though. :think:

So, a few scenarios:

1. There is a fire in the flat caused by faulty electrics. I am therefore liable. The fire spreads to other parts of the building and some repairs and renewals are needed in those other areas.
Would public liability part of LL insurance cover me for any claims against me, and the cost of repairs both inside and outside my flat?

2. There is a fire in the flat caused by the tenants leaving a candle or cigarette unattended. The tenants are unable or unwilling to pay for the repairs, and the repair costs are greater than the deposit I have from them. Would the LL insurance pay out for the repairs, and/or cover me for legal costs of pursuing the tenants for the costs?

3. There is a fire in the building caused by something outside of my flat, say an electrical fault in the common areas, but my flat has some fire damage and the tenants have to move out while the repairs are done. Would the freeholder's buildings insurance cover the costs of repairs and temporarily rehousing the tenants?

4. My tenants damage the kitchen, bathroom or flooring, either accidentally or maliciously.
a) The cost of the damage is less than the deposit that I hold from them. LL insurance wouldn't pay out in that case I think, as I should deduct the cost of repairs from the deposit, yes?
b) The cost of the damage is MORE than the deposit that I hold from them. Would LL insurance pay out?

You need to have public liability insurance which is part of the landlord's insurance in case your tenants injure themselves in your flat. A claim for injury will cost a lot more than a new kitchen.

dimbo61

Landlord insurance is a tax deductible expense.
You would be mad not to have Landlord Insurance.
What happens if your tenants set fire to the property or a fault in the tumble dryer or fridge freezer causes a fire and 10/12 tenants have to move out for months !

G_M

My broker offfers a 'buy one get one free' policy.

Margot123

My Landlord Insurance covered unpaid rent etc and only cost about £20 per month on a property worth £250k. Cheap at twice the price I'd say.

ileven1225

Can someone recommend what should be included in the LL insurance?

Thanks!

lorrainp

G_M wrote: »

My broker offfers a 'buy one get one free' policy.

@G_M: Who is your broker please?

davidmcn

dimbo61 wrote: »

What happens if your tenants set fire to the property or a fault in the tumble dryer or fridge freezer causes a fire and 10/12 tenants have to move out for months !

I would hope that the freeholder's policy would provide cover in that scenario - so OP should check they're not duplicating cover which already exists (and that it applies where the flat is rented). It's certainly the norm for stand-alone buildings policies to include third party liability.