Tenants and landlords insurance

Landlords insurance

Landlord’s insurance is a must. 

The benefits far outweigh the costs and is something that shouldn’t be overlooked or be left to be done at a later date.  The problem however is knowing which insurance to take out and each covers as there are at least five different options, each covering a different element of your flatshare. 

Three of the most common policies are cover the property, its contents and unpaid rent:

Buildings insurance

This covers the property against all damage to it from natural elements such as storms and earthquakes, criminal damage such as theft and vandalism and accidental damage such as burst pipes and impact from vehicles, falling trees and the like.  In addition, damage to kitchens, bathrooms, radiators and carpets are often covered too.

The insurers will commonly cover landlords for repairs and full replacement as well as for loss of rent if the building is not fit to live, but as with all insurance policies it is best to check the fine print with each company to see what they will and will not cover.

Contents insurance

Not all landlords will require this cover, but is dependant upon whether the flat is furnished or unfurnished. 

For unfurnished flats, limited contents insurance is available typically up to the value of £15,000 and covers items such as carpets, any furniture that may be provided and electrical items.

For furnished properties, full contents insurance is offered which as you can imagine will cover everything that is documented on an inventory list.

Rent guarantee insurance

This insurance policy will cover landlords in the event that a tenant has recurring problems paying the rent. 

Insurers will often payout if a landlord is going through the courts to have a tenant evicted, which can often be a prolonged period of time when a tenant may not pay the rent.

Tenants contents insurance

Typically, there are no insurance policies which will cover both a landlord and their tenants, so it is advisable that a tenant organises some form of contents insurance for their belongings. 

Unfortunately contents insurance is often overlooked by tenants as a result of the stresses and costs of moving into a new property.  However, for a small fee each month a tenant can take out an adequate policy which will cover possessions in the event of burglary and damage as well as any damage caused to the property by human error e.g. allowing a bath to overflow.

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