WHY DO YOU NEED LANDLORD INSURANCE?

If you are going to rent out your property, you will need landlord insurance to protect your property against any damage or unforeseen circumstances. Standard home insurance may not provide the cover that you need for your rental property. Those who are new to being a landlord may not realise how a particular insurance policy can protect their building and content. Luckily there are several insurance options available in the market to protect the landlord's property and income. Many landlords take a deposit from their tenants as security. This deposit needs to be protected through landlord deposit insurance schemes offered by the government. Landlords can charge the cost of damage from this deposit at the end of the tenancy.

There are three main types of insurance are available in the market that you can take as a property investor:

• Landlord insurance (building, content, and liability insurance)
• Rent Guarantee insurance 
• Landlord emergency cover 

In the long run, landlord insurance protects you from paying out large amounts in case of accidents. Now let's look at the reasons why you need landlord insurance:

Building Cover 

Your property is one of your most significant assets, as you have invested thousands of pounds on it. Therefore, it is necessary to protect this asset, especially when you are renting it out. Landlord building insurance would protect the structure and built-in items such as kitchen boilers. If a disaster strikes, this insurance covers the cost of damage, and you would have peace of mind by purchasing this type of insurance.  

Content Insurance

When you are renting a furnished property, you may need a cover for furniture, carpet etc. You can add content insurance to your landlord insurance to protect your possessions from any damage. Content insurance will cover the cost of repair in case of damage, and some insurers offer replacement costs in case of theft.

Covers Loss Of Rent  

Loss of rent is one of the worst things that could happen to a landlord. Suppose a disaster strikes, such as a flood and makes your property unlivable. You can no longer rent your house until the damage is repaired and the property again becomes able to live in. landlord insurance can be a hope for landlords in distress. It provides you rental income for a particular time in case of any disaster or when your tenant fails to pay rent on time.

Landlord's Liability Cover 

It is the responsibility of the landlord to provide his tenants with a safe environment. In case a tenant got injured due to a flaw in your property, you will be held responsible for the medical expense. These claims can hit your pocket badly. A landlord's insurance also covers the compensation cost and legal fees.

Malicious Damage 

Deliberate and accidental damages are the real concerns of landlords when handing over keys to tenants. Malicious damage can be detrimental to your rental income. However, with insurance for your rental property, you can get a cover for the cost of replacement or repair of things that are damaged maliciously. 

Although landlord insurance is not a legal requirement, you should purchase one if you want protection for your property against damage and in an emergency.