Landlord Insurance- Do you need it?
Quick Read- there are so many different packages of insurance out there, but what do they really offer and do you really need it?
When you become a landlord there are responsibilities that come with it, whether that be keeping on top of repairs, legal costs and any unexpected financial losses that may occur.
There are lots of different companies out there offering different types of insurances and guarantees, so what really is landlord insurance?
Landlord insurance will usually cover a variety of aspects of your rental agreement and your property. First of all you should make sure it includes buildings and contents insurance as a minimum so that your covered if there is any major problems. Don't forget if your renting a property out you have an obligation to get repairs done in a timely manner.
Landlord insurance may also offer additional add-ons such as:
- Heating, Plumbing & Leaks Cover- giving you peace of mind that if there is a problem that needs resolving the cost is already covered.
- Home Emergency Plans- just like having heating cover a home emergency plan will step in for certain property repairs, you can rest assured if a problem arises that needs emergency assistance then you are covered, this could avoid costly emergency call out charges.
- Legal Expenses- there are a variety of legal issues that may arise such as evictions and disputes, paying a little extra for legal cover may end up worth its weight in gold.
- Rent Guarantee Policies- these can cover periods of unpaid rent if your tenant falls into arrears.
The type and level of insurance you choose will depend on the property and type of tenancy you have. These can vary greatly so its important you do your research on the best policy for you.
If you choose not to take out insurance its important to remember that you may be required to pay out large sums for repairs or other unexpected costs. Whilst there is no legal obligation to get Landlords Insurance you may find that it ends up financially better in the long run.
If your thinking of becoming a landlord and want to discuss the next steps then get in touch with one of the team on 0151 644 6000 or rachael@lesleyhooks.co.uk