Do I require Landlord Insurance?
If planning to rent out your property in UK, there are several important things that you need to know before the new tenants move in. First of all, it is advisable that you take up a special type of landlord insurance cover in order to protect the property. The protection included in this cover is similar to that which you have taken for your own house; for example covering the building and its contents for different types of risks.
What does landlord insurance cover?
As a landlord, there are extra covers that you need apart from the building cover. Such include covers for:
• Damage caused by the tenant to the property
• Rent defaults
• Liability for accidents – in case your property causes some injury to another party
• Loss of earnings – if an insured event occurs and the tenants are forced to move out
Currently, insurance is not a must have for landlords. Nevertheless, some lenders may require you to have insurance cover if the property has a buy-to-let mortgage. You can therefore choose one of the specialist landlord insurance protection schemes that have been developed by insurers. Before selecting any insurance however always ask the insurer to explain which elements the policy actually covers.