Landlords insurance - do you need a specialist product?

chevalier

Or would bog standards buildings insurance from a.n.other insurer be fine?

we are moving abroad and letting our house via an agent. They seem quite keen to suggest a specialist landlord buildings insurance from Letsafe (they don't get commission though). However the price is pretty steep compared to a normal policy

So question is a) do specialist landlord buildings insurance give you better protection, than going to a normal insurer?

b) what about the rent protection insurance too, and eviction insurance. Do we REALLY need these?

Just want a bit of guidance really. One quote for the landlord building insurance worked out at £750:eek: :eek: :eek: .

hope someone can help
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tbs624

Yes, you must have LL insurance cover. Many of us on here use Alan Boswell
( www.alanboswell.com) You could also try http://www.moneysupermarket.com/landlord-insurance/
http://www.landlordinsurance.co.uk/ or here http://www.endsleigh.co.uk/landlords-insurance.html

Some LL go the whole hog with every type of insurance going, some don’t: it’s down to personal choice and your own peace of mind.

If you join a national/ affiliated local LL Association, you will get a discount on your premiums with some firms (incl Boswells). Even with the fee for joining up , the insurance will probably still work out cheaper.

chevalier

thanks for the quick reply. Why is it a MUST? That is what I don't get, surely it is your risk if you get a sub standard insurance product not one from a specialist. I guess I am just a bit cynical, that specialist always seems to mean expensive.

Ref the LL Association - that won't affect our relationship with the letting agent will it? Defo like the idea of a discount though.

Will have a look at the links supplied. Any other views?
thanks again
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JF77

As a landlord you have legal responsibilities towards your tenants in a way that you do not have for your own home. A landlord insurance policy covers you for this, a standard policy would not.

For example, a tenant may electrocute themselves on a faulty light switch and badly burn their hand as a result. The Landlord Liability cover will pay for any damages that are awarded to the tenant as well as all legal costs. A standard policy would not cover this.

tbs624

If you’re letting out a property, you’re effectively running a business so an ordinary home policy will not give you appropriate cover. As a LL you have legal responsibilities for the safety of the tenants within your property, so you need special LL liability cover, which is part of these policies.

Belonging to a LL association should be approved of by your Agent, I can’t think why it wouldn’t be ( and remember the LA works for you, not the other way around) It also gives you access to a whole host of useful advice or information, because even with a LA acting on your behalf, you still need to know what’s what with regard to your responsibilities.

silvercar

If you had a building insurance claim and the insurer found out you were not the owner occupier, your claim would be void. So you need to have the correct insurance to have any sort of cover.

PasturesNew

Scenarios a landlord might have to cover:
- property floods, you have to rehouse the tenant, maybe short-term in a hotel then in another property
- property catches fire, you have to rehouse the tenant ...
- tenant doesn't pay the rent, you can cover that
- tenant dies and rent not being paid

Also, for easy reading, see the following real life examples, think about how you would handle them. Extra agent fees, hassle, insurance claims:

Exhibit A: http://forums.moneysavingexpert.com/showthread.html?t=782197
Exhibit B: http://forums.moneysavingexpert.com/showthread.html?t=619891
Exhibit C: http://www.theargus.co.uk/search/display.var.1985710.0.mum_trashes_325_000_home.php

woodys_wonders

chevalier wrote: »

Or would bog standards buildings insurance from a.n.other insurer be fine?

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You do need a Landlords Buildings Insurance.
There are many companies that offer this and I would suggest you ring round a few to get more than 1 quote to compare.
You can also try www.milestonehouse.com as they offer a great landlords buildings policy which includes accidental damage cover and legal cover as standard. If you ring them and quote NB10 they will give you a further 10% discount.

Hope this helps:D

Cazza

You definitely need a specialist Landlord's building's policy - most "normal" policies state that you must live in the property, so if you're not living there, you're in breach of the T&Cs. There are lots of insurers available, so it's possible you may be able to reduce the premium significantly. All the other insurances are down to how your personally feel.

JennyP

I told my insurers that my property was let out and they were quite happy to cover that. The insurance went up very little!
My father-in-law used to work in insurance and goes over all our policies with a fine toothcomb (whatever that is!) and he was quite happy with it!