Landlord insurance is a type of property coverage that will protect the owner against accidents, damages and other unforeseen circumstances when renting out a home or apartment. This is actually a critical policy to keep in mind, for an uninsured landlord can be at risk of massive financial losses and costly legal processes. As with most plans, landlord insurance can be quite modular and there are a number of different policies available.
Types of Landlord Insurance
Building insurance is the most important component of any policy, for it will cover the costs of repairs that could be necessary in the future. Thankfully, most policies will include an unlimited amount of coverage. Additionally, liability insurance is another variety. This will protect the landlord against any claims made while a tenant is living on the property. It is worthwhile noting that within the United Kingdom, providers will normally offer up to two million pounds of protection (this can be increased depending upon individual circumstances).
Other policies will offer financial protection in the event that a building remains unoccupied for an extended period of time. This is known as loss-of-rent insurance. Emergency insurance plans will compensate the landlord for sudden repairs such as a plumbing issue or a gas leak. Finally, legal expenses insurance is designed to recuperate costs that may arise as the result of a dispute with a tenant. These plans can be offered as standalone packages or as a combination within a specific policy.
Things to Take Into Consideration
Obviously, each landlord will be presented with his or her own unique situation. The value of the property will need to be considered, as this may affect the premiums that are paid. Also, the location itself is important; high-crime areas will do well to include both emergency coverage as well as contents insurance. The price of the policy is also critical. Could an expensive policy make timely payments difficult? Any lapse in coverage can present a very real danger and these are a few of the main concerns.
How to Get the Best Deal
It is always prudent to speak to at least three different insurers to compare rates. Additionally, other steps can be taken such as:
- Can a policy be upgraded as is needed?
- Will premiums lower over time if no claims are made?
- Is the provider in question reputable and in good standing?
- Does the company provide numerous points of contact in the event of a claim or other question?
These considerations will enable the correct choice to be made while providing the landlord with a peace of mind in knowing that the property is in good hands.