Just as you’d protect your own home with comprehensive home insurance, landlords need cover for their rental properties. But what do landlords need to look for when getting insurance?
Although a rental property may be just another investment to a landlord, it is a home for the tenants living there, so it requires all of the covers that you’d put in place for your own home – in addition to industry-specific covers.
Award-winning Landlord Insurance provider Just Landlords has put together some top tips to help landlords get the cover their properties need:
Don’t forget your contents
Even if you don’t provide a fully furnished rental property to your tenants, there will still likely be some contents that you do offer, such as a washing machine (imagine if you tipped your property upside down – anything that fell would be classed as contents). It’s essential that these items are covered by your insurance so that you don’t miss out if any damage is caused to them.
If you do offer a fully furnished property, you may be surprised by how much everything is worth, which would cause a large dent in your pocket if anything was damaged or stolen. Always choose a policy that includes landlord contents.
Listen to other landlords
Other landlords or property investors will likely know a thing or two about protecting their properties, so speak to them to find out who they take out insurance with and what they think of the company.
If you don’t know any other landlords personally, you can always look online for reviews and recommendations from property investors. Trustpilot is a great place to start, as its star system allows you to compare one insurance provider to another.
Look for industry-specific covers
Unlike standard home insurance, landlord insurance should include covers for industry-specific perils that don’t affect normal homeowners. For instance, landlords will require cover against malicious damage, as well as cover against malicious damage by your tenants – this is an additional cover that landlords need if they wish to claim for any loss or damage caused by the tenant. The same goes for theft.
You don’t want to get caught out if your tenant does cause damage to the property on purpose, or steals something from your property, so always look for these essential covers when choosing a policy.
Check the Defaqto rating
Defaqto is an independent financial information business that helps consumers make informed decisions when it comes to companies offering financial services, such as insurance. With its star rating system (which ranges from 1 = the worst rating, to 5 = the best rating), you can easily compare policies from different providers.
Of course, it’s always best to go with a company that has a 5 Star Defaqto rating, such as Just Landlords, as they will be able to offer you the comprehensive cover that your rental properties need.
Watch out for sneaky add-ons
The last thing you want to do when looking for insurance is come to get a quote at a certain price and find that, if you do want extras that you think you’ll need, you have to pay more for them.
When looking at a landlord insurance policy, always make sure that it has all of the covers required for your property as standard, without finding that you need to pay for sneaky add-ons at the end – a good product will already have these included with the original price.
Looking out for each of these factors when choosing landlord insurance will ensure that you get the cover you need for your properties.