As a landlord, ensuring that you have good quality landlords insurance is vital. This blog will break down all the elements of landlord’s insurance, and the add-ons available.
Buildings Cover:
This covers the cost of repairing damage to the structure of the property. The minimum amount you should insure is the full reinstatement value of the property (this includes everything from demolition/site clearing, labour and materials, fees for surveyors, architects etc. to alternative accommodation), which can make this value much higher than the actual value of the property if you were to sell it. The re-build value can be confirmed on a RICS homebuyer’s survey or the BCIS website. Most 5* defaqto rated policies provide blanket cover which provide high levels of cover as standard.
Buildings cover is MANDATORY where you have a mortgage; if you do not have this cover in place, you are in breach of your mortgage conditions.
This part of the cover also insures fittings deemed as permanent, such as kitchen units, built-in appliances, sinks, bathroom fixtures, as well as solar panels.
Landlord’s Contents Cover:
This covers all moveable items within the property. Imagine turning the property upside down and seeing what falls out!
This part of the cover also insures carpets, blinds and curtains.
Contents cover is optional however we always recommend it for buy-to-let properties, even those that are rented unfurnished. A nominal amount can be selected for unfurnished properties to cover the essentials.
We would also recommend the tenant takes out their own contents cover to protect their furniture, household goods and personal effects.
Excess:
The policy excess is paid when a claim is made. There are 2 types of excess:
- Compulsory Excess: set by the provider that you MUST pay.
- Voluntary Excess: set by you to pay on top of the compulsory excess.
Adding voluntary excess can reduce your premium (the cost) however do not add too much! Claims will be rejected if the total excess is higher than the cost of the replacement or repair.
Excess is higher on claims that are deemed more serious, for example escape of water or oil, subsidence, landslip and heave. You will need to check your policy documentation for full details of your excesses.
Accidental Damage:
This covers against unintentional, one-off incidences that harms your property and/or its contents.
Most insurers (especially good quality providers) offer basic accidental damage as standard. This would insure things such as fixed glass and sanitary fixtures, cables and underground pipes covered under buildings cover.
Extended accidental damage can be added to both buildings and contents cover. We always recommended this as most claims fall into this category. Humans can be very clumsy! This extended cover can insure popular mishaps such as a nail in a pipe or paint on the carpet.
Malicious Damage:
The definition of malicious damage for most insurers is damage caused by somebody on purpose.
Some landlords are unlucky and have tenants who vandalise the property. This can happen at any time but often happens at the end of a tenancy if things end badly, perhaps in eviction cases. Tenants might make holes in walls, rip out kitchen units, or might set up a cannabis farm that could cause thousands of pounds of damage that would be costly and time-consuming to put right.
Some insurers will include damage caused by tenants and some will not. You will need to check the wording of your policy. Adding malicious damage cover will pay for the cost of repairing these intentional damages.
Landlord’s Home Emergency Cover:
Covers against sudden and unforeseen incidents in the home, that exposes risk to health and creates loss/damage to the home making it temporarily unsafe.
Examples of this are: no heating, power or hot water, broken window or locks, drainage issues e.g. blocked toilet, pest infestation, property is unsecure (broken window).
This can be used 24/7 with unlimited call outs, ensuring that whatever the issue is, it is solved promptly.
Most insurers (especially good quality providers) will also include alternative accommodation within this cover, so that if the emergency means the tenant cannot stay in the property, they will be housed elsewhere e.g. a hotel.
Legal Expenses Cover:
Covers an amount of legal costs.
Examples of this are: Eviction proceedings, rent recovery, property legal disputes, health and safety prosecutions, tax protection.
Rent Protection:
Covers the rent payments due if a tenant does not pay, or if the property is unoccupied.
This ensures the landlord’s monthly income continues which is especially important if the property is mortgaged.
In summary:
Advice is key. Protection professionals, like ourselves, have a vast knowledge of the options available and we can ensure that you select the most appropriate cover for your individual circumstances.
So what are you waiting for! Call us today on 01455 63 61 63 or click here to book a meeting with one of our friendly advisers. https://onerooffinancial.co.uk/contact/
Blog written on 22/04/2025
The information contained within this blog was correct at the time of publication (22/04/2025), and is subject to change.
