A landlord's insurance policy is not a
legal requirement, although not owning one is not a wise choice!
Any business faces risks on a daily basis and owning a second
house as an investment is no different.
A fire or burglary may destroy your investment and the hard
work you have put into it. Let properties are increasingly
becoming a more attractive way of saving for the future so it
makes sense to protect it! Insurers have recognised the need for
Landlord's insurance and as a result have developed policies
that cater specifically for landlords.
A landlord's insurance product consists of a number of
insurance benefits bundled together and normally costs you less.
If you plan to be, or are a residential landlord you would
insure the building and any of your own content left in the
property.
A landlord's insurance policy normally provides cover against
fire, theft, vandalism/malicious damage, leakages, smoke damage,
subsidence, burst pipes, impact from vehicles, falling trees,
animals, aircraft, aerials and masts. You may also want to
consider a policy which includes items such as business
interruption and liability.
The tenant would only take out an insurance policy to cover
their own contents and possessions.
Commercial landlords is slightly different in that the
landlord is responsible for insuring the building and claiming
premium payments from the tenants as business tenants normally
be charged (and expect to pay) for the building insurance. In
addition a commercial landlord would also need liability
insurance, legal cover, debt management and other bespoke
insurance policies.
