What is landlords' insurance?
If you rent a place to tenants, standard house insurance is not adequate. You will need landlord's insurance.
What does it cover?
It should include third-party liability, in case a tenant damages or destroys the structure of your property. It should also cover the cost of rehousing them should the home be inhabitable due say, to a fire or flood. In addition there should be contents cover for any furniture left in the property that belongs to you. Finally, it should protect you with liability cover in the event that a tenant or their visitor is injured at your property and claims against you.
Will it cover me if tenants don't pay their rent?
Not as standard. Rental guarantee cover is an "add-on" which will increase your premium. Alternatively, it can be bought as a standalone policy. Legal cover – which pays expenses should you need to take your tenant to court – will also cost extra. It could be worth considering as court fees can start at around £800, before you factor in the loss of rent.
Where can I buy landlords' insurance?
It is as easy to buy as standard home insurance. You can find a reputable list of insurers and brokers at MoneySupermarket, for instance. But don't make your decision on price alone. Terms and conditions vary considerably so ensure the policy covers exactly what you need.
What if I am a landlord with more than one property?
Rather than covering each home individually, you can buy multi-property landlords' insurance, on which discounts are usually available.