Dec 03

What Other Landlord Insurance Policies Should I Procure?

Landlords understand that they need insurance to properly protect their investment. The one insurance that all landlords must have is landlord insurance. This is a general term that describes a rather complex policy that covers the building, liability and various other aspects of the property. Without landlord insurance, a landlord can lose their entire property with no means of financial recourse.

Additional Insurance Options

There are a variety of insurance options that you will be able to take out. Among these options are the following:

Unoccupied Property Insurance

This is insurance that is ideal for a landlord that frequently switches tenants. If renovations are needed or you need to find a new tenant, you will be very unhappy if you do not have unoccupied property insurance.

What this insurance allows is for you, the landlord, to recuperate some of the losses that would be present if the property were unoccupied.

This insurance will often last for 30 – 45 days before the payouts decrease significantly. Some policies will also end immediately after 45 days. The goal is to have some financial relief if a tenant leaves or if repairs need to be made and the property cannot be occupied.

Emergency Insurance

This insurance is often only supplied by utility companies. For instance, your gas provider may provide emergency insurance as part of your service, or as an add-on. What this does is allow you to call the service provider when an emergency has arose.

As an example, if a tenant calls you in the middle of the night about the boiler not working, you can call British Gas, or your provider, and they will come out and offer assistance. The best part is that the tenant can call the company, allowing for you to not have to deal with late night calls.

Renovation Insurance

The perfect insurance for when a property is being renovated. Renovation insurance will cover structural and non-structural work that is being done to a property. Furthermore, this insurance may also offer liability cover in the event that a renovation led to an injury on the property. Theft and fire insurance are also often included and will allow you peace of mind when renovating a property.

This insurance may be included or added to your policy, or it may be procured prior to any renovations taking place.

Alternative Accommodation

A cover that may or may not be included in your basic landlord insurance policy. This will allow you to offer your tenants accommodation in the event that your property is currently uninhabitable. If a fire was to occur, a home would not be able to maintain occupancy during the repair process. Depending on the extent of the damage, this may mean that a tenant is without a residence for an extended period of time.

As a landlord, you can offer these alternative accommodations as a part of your rental agreement.

Obtaining and renting the property may also be covered under this insurance option, allowing for a steady stream of income until your damaged property is repaired.

Evaluating Your Policy

Before contacting any insurance providers, it’s essential to evaluate your landlord insurance policy to see what inclusions may already exist. Furthermore, you will want to check over any exclusions to see what exactly isn’t covered under your policy.

Ideally, you will be able to talk with your insurance agent to see what is and isn’t covered. An agent will also be able to further assist you by suggesting pertinent additions that may provide you with the utmost in cover.

If your policy does offer cover, ensure that the premiums are sufficient. Oftentimes, minimal cover can be enhanced to provide overall better coverage at a very minute cost.

Getting the Best Deal

Getting the best deal for your insurance is easy. You will want to consult with your current landlord insurance provider to see what they currently offer. As a current client, you may be able to bundle a few of the policies together to save money. Furthermore, if you have multiple properties, you will often be able to receive steep discounts.

Speaking with your insurance agent is the best option available. In the worst case scenario, your provider will not offer the required insurance and you will need to seek additional cover from another provider.