Landlord insurance

Landlord insurance, also frequently known, as purchase to let insurance is something a landlord should start to contemplate even as early as considering the purchase of a property. Failure to put in place landlord  insurance on a property could leave you with nothing to show for your money should something go wrong. In some cases it can be extremely difficult or highly expensive to put insurance in place for a property and for this reason it is important to have a structural and local survey for the property and look for appropriate insurance policies before purchasing the property.

Landlord insurance policy

Many landlords will wrongly be under the feeling that their quality household insurance will still cover the property while they rent it out, this is often not the case. Many household policies offer no cover for buildings nor contents while the property is being let out and for this reason it is crucial to make sure you have a landlord insurance policy or that your present household landlord insurance policy can provide this cover while the property is let out.

Each  landlord insurance company offers different levels of cover. Generally there are two options available for buildings cover and two options for contents cover.

Landlord insurance is accidental damage

The second option available landlord insurance is accidental damage for buildings and/or contents. This is as understandable as the title, any fortuitous harm caused to the building or contents by the tenant will be covered. It is important to note that most insurers charge extra for accidental damage cover and many will not offer such cover for contents. As noted above landlord insurance property owners liability usually comes as standard with a landlord insurance policy. This would cover you in situations such as the tenant holding you liable for an injury, which was caused within your property.

Landlord insurance excess policy

The landlord insurances excess of a policy is how much you must pay when making a claim. The excess on a policy will vary between different insurers and a discount on the premium is often offered in exchange for a higher excess. For example if the surplus on your policy was £100 then you would have to pay the first £100 of any claim you construct, regardless of the final settlement value. As above the standard excess on a policy will often vary from £50 upwards while a subsidence excess of £1000 is usual with most insurers.

Insurance property of the landlord insurance

Something to be aware of when insuring the property of the landlord insurance is that you need to insure it for the reinstatement value and not the sale value. The only accurate way to obtain the reinstatement value is to have a structural survey undertaken by professionals.

Due to this rule insurers must supply what is known as key reality or a policy summary for any landlord insurance policy they have obtainable.

-Stephen Robert Richard Hill, Ashburnham Insurance Services Limited. Landlord Insurance


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