Landlord Insurance

What is Landlord Insurance?


Landlord’s insurance is a policy which is designated to provide coverage for a property owner from losses that are associated with rental properties. The policy is able to cover the property and has an option of insuring the contents that belong to the landlord that are inside of the property. It is also known as buy-to-let insurance, however it’s important to understand that ‘buy-to-let insurance’ is a different type of landlord insurance. This would generally cover one property that would be purchased with a buy-to-let mortgage – in contrast to multi property insurance which covers two properties or beyond. Both types of landlord insurance are able to cover different things, so this is why it is very important to understand them.


What Does Landlord Insurance Cover?


The policy for landlord insurance typically covers the general perils of storm, flood, earthquake, explosion, lightning, fire, theft, and malicious damage. Every policy is different and may or may not be able to include these elements depending on the needs of the landlord. There is also optional coverage. This can include malicious damage by tenant, accidental damage, legal protection, terrorism, alternative accommodation costs, rent guarantee insurance, contents insurance, and liability insurance. Usually these policies do not cover any of the personal property which belongs to the tenants or will protect the interest of the tenants.


What Are the Cost Expectations for Landlord Insurance?


In most cases, landlord insurance costs about 25% more than the prices that are associated with homeowners insurance. In that sense, the rates can vary depending on the premium rates that are associated with homeowners insurance with the region. With various types of landlord insurance, they generally cost more than the typical price – so of course if a landlord is interested in buy-to-let insurance, they are going to pay a different rate than they would if they were purchasing multi property insurance. The rates vary depending on the properties and other factors that may be involved.


What Are the Benefits of Landlord Insurance?


Landlord insurance can be very beneficial to those who have numerous properties that they have to manage and rent out to tenants. The concern when renting out properties is always going to be whether or not the tenants are going to take good care of the property and any of the related items that are within – assuming those items also belong to the landlord. In consideration of that, landlord insurance gives landlords peace of mind because they are able to be certain that if any loss or damage occurs to their rental properties, the insurance will cover the amounts of those losses. The insurance policy is not designed to be more beneficial towards the tenants, which is often a concern for landlords who may feel that their tenants do not want to take responsibility for these issues when they occur. Landlord insurance will not take care of every issue, but the option of having this insurance may make the difference to a landlord when it comes to costly repairs or unforeseen issues that may prevent the apartment or home from being rented for weeks or months while the issues are fixed.

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