When you own a rental property, you understand how complicated it can be to market, manage, and insure your property. As a landlord, you have to focus on finding responsible tenants, inspecting the property when it is occupied, and insuring your property against all of the possible risks.
The Association of Residential Letting Agents released a report claiming that almost 40% of homes in the UK are under-insured. You should keep this statistic in the back of your mind when you are shopping for cheap landlord insurance. The whole purpose of insurance is to take away the risk from you as the landlord. Make sure you know what types of cover are available and building a comprehensive policy that is affordable but does not compromise your cover.
Building Insurance
If you have a mortgage on your property or you own it outright, you want to be sure that the building is protected. A fire, an explosion, hail, riot, or other catastrophes can turn your rental property into a pile of debris. All basic and comprehensive insurance plans including building insurance on different types of buildings.
Contents Insurance
If you furnish your rental property, you must make sure that you have adequate contents insurance. Contents insurance will pay for all of the belongings that you own in the building that are not permanently attached to the building structure. This includes: washers, dryers, ranges, furniture, and more.
Liability Insurance
If someone is hurt on your property, the tenant can say that you were to blame. It is important to invest in liability insurance to protect yourself against lawsuits for injuries or property damage. In today’s litigious times, liability insurance is very important for real estate investors.
Loss of Rents
Loss of Rents can work in two different ways. If your tenants are not paying their rents as stated on a rental contract, your Loss of Rents coverage may pay up to an agreed amount. Loss of Rents will also pay if your building has been damaged and cannot be occupied by a tenant while it is being repaired.
As you can see, there are a number of different coverage options you will need to tailor when you are looking for cheap landlord insurance. Make sure you build a policy that will cover your building, your contents, and your liability. If you take time to tailor your insurance, you can pass most of the risk associated with being a landlord onto your insurer.
