It’s common for landlords to believe that their renter’s insurance will protect them against any damages incurred by the tenants living in their property, but unfortunately, that’s not always the case. In fact around 40% of all liability claims are made by landlords and aren’t covered by their tenant’s insurance policy. To protect yourself from this risk and others, you should consider buying landlords insurance in liverpool through your insurer of choice (or call your local agent) when you buy your first rental property.
What is landlord’s insurance?
Renters’ insurance provides a tenant with financial protection against damage to their personal property. However, it doesn’t cover any damage to common areas, such as hallways or stairwells. Additionally, if you have off-site storage units or a second home that you rent out, these are considered commercial properties and fall outside standard renters insurance policies.
Different types of cover available
Before choosing a policy, consider your financial requirements. There are various types of landlord insurance policies; however, some may not be suitable for everyone’s circumstances. For example, buildings insurance is an absolute must-have for any landlord. It protects you from structural damage and loss that may occur due to water leaks or bad weather conditions. Other forms of cover include liability protection, personal possessions cover and legal expenses cover in case tenants sue you for injuries or damages.
Buildings insurance – what does it cover?
A typical buildings insurance policy will cover damage to or destruction of your property, including any outbuildings. It’s also worth checking with your agent whether you are entitled to claim for a partial loss – if your building is partially damaged and you can no longer use part of it, but still have useable space elsewhere, you may be able to make a claim. Buildings insurance usually doesn’t cover items inside a building; in order to safeguard belongings, contents insurance should be purchased separately.
Contents cover – what does it cover?
Rental property insurance is designed to protect landlords and their investment properties from various damages and perils that can occur on a home. This type of insurance protects you from lawsuits or other disputes with your tenants, such as property damage or fire loss. It also covers you for temporary living expenses, should there be a natural disaster that requires repairs to your home in order to make it habitable again. If necessary, it can even help pay for legal representation in court if an accident were to happen on your property.
Other important policies
Although landlord’s insurance is a good option for protecting your rental property, other policies are also worth investigating. Check out tenant’s business insurance to ensure that you are covered in case of damage to your building or apartment. Keep in mind that many standard homeowner’s policies do not include liability coverage if someone is injured on your property; additional tenants’ coverage may be available at an additional cost. Protect yourself by speaking with a specialist about all aspects of your protection plan.
Do I need landlords insurance?
Whether you’re a first-time landlord or have rented out properties in the past, it’s important to understand that landlords’ insurance can help protect both you and your property. When used correctly, landlords insurance will cover damage to your property and other structures from natural disasters or accidents that could occur on your watch. Additionally, these policies will provide financial protection should someone be injured at your property or if a tenant breaks one of their lease agreements by not paying rent.
