Landlord insurance is crucial for anyone considering renting out their property. Even with fully referenced tenants, there are still a whole raft of unfortunate incidents that can incur costs.

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Since there are no hard and fast rules when it comes to which landlord insurance you require by law, Simply Business recommends speaking to your mortgage broker to determine which insurance is right for you. Here is a look at a few of the options to get you started.

Building insurance

Banks will insist on building insurance if you have a mortgage on your property, but even if you are the outright owner, building insurance remains the most crucial cover. Building insurance will cover you in the event of fire or water damage or damage resulting from other natural disasters such as earthquakes or lightening, falling branches or trees, or malicious acts of vandalism. Building insurance will give you peace of mind that should you have to repair or rebuild your property, you will be covered.

Landlord contents insurance

This covers the contents of the property. The level of cover you require will be dependent on whether you are offering the property furnished or unfurnished. Even if you are renting unfurnished, you will still need cover for blinds, carpets, curtains and white goods.

It is crucial that each new tenancy is reported to the insurance company and that a full new tenant inventory is taken upon each new contract. The new tenant inventory is usually taken by an estate agent or their management company, but if you are a private landlord, you may wish to use inspection and property inventory software such as that offered by Inventorybase https://inventorybase.co.uk/ to ensure you have everything accurately on record and avoid any disputes.

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Accidental damage should usually be covered by either contents or building insurance, but please do double check your policy. For example, spilled red wine on your new carpet should be covered by contents, whereas a football through your front window is covered by the building insurance.

Landlord Emergency Cover

If you are managing the property yourself, emergency cover can be invaluable and will provide assistance with lost keys, boiler breakdowns, and other costly urgent eventualities that require a qualified tradesperson to visit your property on short notice.