There are many things to consider when you become a landlord.
Standard home insurance policies aren’t designed for landlords. They don’t cover the various third-party risks that renting out your house, bungalow or flat can introduce. Even if you’re renting out to family members or are only renting out a room or two, it’s unlikely to cover all eventualities.
Third-party risks can be both deliberate and accidental, including damage caused by:
Making a claim on home insurance in your own name for a property that’s being rented out can be rejected by an insurer. This can leave you out of pocket and, in the worst-case scenario, unable to afford repairs to keep it in a safe condition. Many landlords fail to take out specialist insurance, leaving them vulnerable if they do need to claim.
Specialist landlord insurance can cover you against third-party risks and ensure you’re financially protected should anything happen to your rented property.
In some cases, when you’ve taken out a mortgage on a property that you plan to rent out, your lender will insist you have specialist landlord insurance in place. This will usually be required during the application but can be later.
There are various differences between home and specialist landlord insurance policies. Both the main features of home and landlord insurance are explained to make the advantages of taking out a specialist policy clear.
Standard home insurance is vital to protect the property you live in. You’ll usually have the option of different levels of cover, each with its own benefits and limitations.
Other features of standard home insurance include:
There are a few things you should look for when you compare landlord insurance and costs. As well as buildings and contents insurance included in standard home insurance, you need additional cover: