We have often discussed the importance of having adequate landlord insurance in our posts, and now that the demand on the private rented sector is at an all-time high many landlords may feel that it’s time to do some research and make sure that they have the right type of cover. But what different types of landlord insurance policies are there? Here we explain the basics.
What is Landlord Insurance?
Put simply, landlord insurance covers rented accommodations against damages that are caused by fires, floods, or theft. If you are letting out properties it is important that they are covered by a landlord insurance policy and not a basic home insurance policy as many home insurance providers will not pay out if damage is caused to a property that is let out. Landlord insurance also provides liability cover in case a tenant is injured in their property and holds the landlord responsible for their injuries. But this is just a basic level of cover, there are also other landlord insurance policies such as…
Rent Guarantee Insurance
With the cost of living increasing and rent prices also on the rise, many tenants may soon find themselves struggling to pay their rent on time. With rent guarantee insurance, landlords can claim if they find that their tenants cannot afford to pay, meaning that their income will not be affected. Mortgage payments on properties still need to be paid whether a tenant falls into rent arrears or not, so if you think that any of your tenants are likely to experience financial problems then this insurance policy would be extremely beneficial.
Unoccupied Property Insurance
You may find that at some point one or more of the properties in your portfolio may go through a void period, meaning that not only are you losing out on money but you are also at risk of damages occurring at the property whilst it is empty. Unoccupied property insurance doesn’t only protect you against this, but also if you decide to have any renovations made on your property and damages occur. Furthermore, unoccupied property insurance can also help with the costs of evicting unwanted guests in your empty properties such as squatters, meaning that you don’t have to constantly keep an eye out!
Here at Compare Crazy we know that every landlord has a different type of property portfolio, so the right type of landlord insurance will not only save you money but also help you manage your businesses more efficiently.