“Do I need landlord insurance” is a common question among landlords. But did you know that landlord insurance is not mandatory in the UK? Even though it isn’t mandatory, it’s a good idea to take out landlord insurance – it’s the best way to protect yourself, your tenant and your investment. 

In this blog, we look at why landlord insurance matters and what your landlord insurance policy might cover.

Why do I need landlord insurance?

When you first invest in property, it’s hard to imagine anything going wrong. You let your attractive property to delightful tenants, the rent gets paid regularly and all is well. But accidents happen. Even the most reliable tenants can fall victim to financial crisis, or have accidents in well-maintained properties. These problems don’t arise very often, but if they do, you want to be prepared. 

It's important to note that ordinary home insurance won’t include enough cover for landlords. This is because ordinary home insurance assumes that the policy holder lives in the property most of the time and is not making an income from it. 

You need landlord insurance because it can protect against the cost of emergencies. It can stop you losing out if your tenants don’t pay their rent, and could even protect you against damage to the property if it stands empty for any period of time. 

With the right landlord insurance, you’ll be covered if something happens to the structure of the building. This means your investment is protected if disaster strikes. 

The right landlord insurance can mean protection for your tenants too. If they have an accident in your property and claim compensation, the insurance should cover any costs that arise.

What does landlord insurance cover?

Exactly what your insurance covers depends on the policy you take out. However, it’s good to know the kinds of situations it could cover so you can choose the best policy for your needs. 

Landlord buildings insurance covers the building itself. In the event of fire or flood, you should be able to claim back the cost of your property. 

Landlord contents insurance is only necessary if you let your property furnished. If you let it unfurnished, your tenants will take out their own insurance to cover their possessions. If it is part-furnished, you might consider taking out fixtures and fittings insurance. 

Landlord liability insurance covers the costs associated with any accidents that happen to the tenants while they live in your property. You would only be liable if the accident happened because of the property, like slipping on a shiny floor or scalding with very hot tap water. With liability insurance, any costs arising from such an accident would be covered by the insurance company. 

Some insurance policies include legal cover. This can be useful if you have to evict your tenants and there are legal fees, or there is a dispute where you have to pay costs. Of course, if you let through Cobbles then our team will do our best to keep relations professional and transparent between landlords and tenants. Unfortunately, things can sometimes still go wrong so it’s important to have the right insurance for your needs. 

Properties are at their most vulnerable when they are empty. For this reason, some insurance policies cover the break between tenancies.

These are just some of the areas and situations covered by landlord insurance. For full details, check what your insurance covers at the time you take it out, and read your policy carefully. 

Let property in Guildford with Cobbles

If you have property to let in Guildford, we hope you’ll consider Cobbles. Explore our site to find out more, or give us a call on 01483 457 000 – we’d love to hear from you.