What is Landlord Insurance ?
Compare Landlord Insurance
Landlord insurance is comparable to homeowners insurance, but it covers the owner for any liability created by a tenant living there. Also, unlike standard homeowners insurance, it also covers you when the property is vacant. Being a landlord can range from somebody renting out their second property to create a small amount of extra income, to a full time business for some, who have a collection of properties, from which they create their livelihood. It is understandable that all of these landlords want to protect their investment, big or small. This is where landlord insurance comes in.
What does Landlord Insurance cover?
Landlord insurance is vital in today’s society, because of the amount of risks involved when owning a property. Not all people understand that, if they take out homeowners insurance on a property and then rent it out, any claim will be void. This is because they are making money from the property.
Each policy is different, but standard coverage often includes fire, theft and vandalism, storm, earthquake (each policy varies here, check with the insurer), oil or water seepage, lightning strikes and flood damage.
With almost every insurer, you can purchase extra coverage, including rent guarantee and contents insurance. Accidental damage cover and legal protection can also be taken out with the policy, but of course, the wider range coverage you take out with your broker, the more cost it will bear.
What To Consider When Choosing The Right Landlord Insurance
If you are the owner of a property and wish to take out insurance, you must consider certain factors when opting for a cover. Whilst different insurers have their own way of calculating your premium, often, there are set of recurring checks that are assessed, these include:
The premium of your landlord insurance policy can be affected directly by the type of tenant you are renting out your property to. Most insurers will still reward a no claims bonus on a property that hasn’t been claimed on in a period of time, even if you haven’t owned it for that period.
The area, age and type of your property can have a large effect on your premium. Typically, inner city properties come with a higher quote, as do older or larger properties.
By taking out a voluntary, larger excess, your policy premium can be reduced. This is the amount it costs you to claim on your insurance.
