Standard home insurance will not cover a property that is being rented out, so it is important to choose appropriate landlord insurance cover before your tenants step foot through the door. There are hundreds of companies out there offering landlord insurance policies, so make sure that you know exactly what is and is not covered by the different policies on offer, especially if shopping through a price comparison website.
Levels of cover
There are many things you can choose to have included in your landlord insurance policy. As standard you are likely to want building and contents insurance. The amount you will be covered up to will also vary depending on the insurance product you buy. A studio flat for example is unlikely to need to be insured to as great a value as a five bedroom house.
Buildings and contents insurance
If the property is a house or bungalow, buildings insurance is essential to cover you from things such as storm or flood damage, subsidence, drainage, vehicles, trees and vandalism. If you have a mortgage on the property it is highly likely to be a condition of the mortgage that you have this cover. If the property is a flat, the freeholder might already have suitable buildings insurance in place, so make sure you look into this before paying for an insurance product you don’t need.
Check whether the buildings insurance comes with a loss of rent insurance that will cover you if something happens to make your property uninhabitable, forcing your tenants to move out.
Contents insurance is something you will always want to have, as even if the property comes unfurnished, there are still things like carpets and white goods to consider. If you are renting the property out with furniture, you will need a greater level of cover.