What does landlord insurance cover?

Landlord insurance provides essential covers for all types of property owner. Whether you own commercial properties or rent to private residential tenants, having the right insurance covers in place could help protect your investments should the worst happen. Whether it’s the fault of your tenants, a third party or perhaps even the building itself, landlord insurance can help to ensure you’re not out of pocket because of things like structural damage, loss of rent or even claims made against you because of injury to a tenant or visitor.

Whether your property owner insurance needs are simple or more complex, our team of advisors can discuss your requirements and provide recommendations based on the covers that suit you and your business. Get in touch today to review your insurance and ensure that your properties are covered.

Landlord insurance is not a legal requirement if you are a property owner, however, if you employ staff then you are legally required to take out employers’ liability cover. If your properties are mortgaged you may also require landlord insurance as part of the terms of your loan, in which case you’ll need to check with your lender to see what requirements they stipulate in your contract.

Legal obligations aside, having landlord insurance in place is recommended as it can protect you from a number of events which could prove costly if you don’t have insurance in place. 

Let’s look at some of the landlord insurance covers you should consider.

Property owners' liability cover is designed to cover landlords against large compensation claims because of injury or harm to a person or their possessions in their building. For example, if a shelf collapsed and harmed a tenant as a result of your negligence, you could be liable to pay compensation. Property owners' liability cover is designed to protect you in this instance.

As a landlord, you have a duty of care to all who use your building and this cover can help protect you from claims not just from residents, but third parties too.

Employers' liability cover is a legal requirement if you employ staff to help manage your property portfolio. This could include maintenance people, cleaners or even clerical staff. This insurance will cover full-time, part-time and temporary staff but may not cover self-employed contractors who work in your properties.

Much like your home, it’s a good idea to protect your buildings and their contents with the right insurance cover. If your property is mortgaged it may be a requirement from your lender that you have buildings insurance in place. This is designed to protect you in the event of damage to the building, such as a collapsed roof, or against other issues such as fire, vandalism and even natural disasters.

Contents insurance can protect your property from damage by tenants, third parties and theft. Contents insurance should be considered if you rent your properties as furnished, or use your property to store things of value, such as furniture, electronics, tools and other equipment.

Some policies may also include additional business interruption insurance which is designed to help landlords with compensation in the event of financial losses caused by interruption to normal business, such as your property becoming vacated for an unexpected period because of a fire or similar.

Loss of rent cover protects landlords from loss of rental income as a result of their property becoming uninhabitable because of damage from an insured event. Loss of rent cover provides financial stability during such events and can ensure that your income is not exposed to unnecessary risk should the worst happen.

Commercial legal protection provides landlords with additional cover to provide support with legal fees and expenses associated with legal disputes brought on by you, or against you. This cover provides financial reassurance and may also give you access to further legal advice and helplines depending on the nature of your policy.

Our advisors have a wealth of experience finding the right cover for landlords. Whether you own a residential property like a small home or a block of flats, student properties or even commercial premises, our team can review your insurance needs and advise you on the best policy from a huge range of insurers at competitive prices.

Find out more about our property owner's insurance packages or get in touch today to discuss a bespoke risk management plan.