What is the Landlord's Insurance?
Landlord’s insurance safeguards property owners against financial losses related to rental properties. This policy provides coverage for the building itself and can include protection for the landlord’s contents. While landlord’s insurance is commonly known as buy-to-let insurance, it’s essential to differentiate between buy-to-let insurance, which typically covers a single property purchased with a buy-to-let mortgage, and multi-property insurance, which offers coverage for two or more properties. These distinct insurance types serve different purposes and cover varying aspects.
What is Usually Covered With Landlord’s Insurance?
Landlord’s insurance typically provides coverage for common risks like fire, lightning, explosion, earthquake, storm, flood, water/oil escape, subsidence, theft, and malicious damage. However, specific coverage can vary depending on the insurance policy. Additional options may be available, such as accidental damage, tenant malicious damage, terrorism, legal protection, alternative accommodation costs, contents insurance, rent guarantee insurance, and liability insurance. It’s important to review each policy to determine the exact coverage provided.
While landlord’s insurance policies do not cover tenants’ personal property or protect their interests, having a liability policy for landlords or property managers can benefit tenants if they experience a loss caused by the landlord’s responsibility. This provides tenants with some level of protection and recourse in such situations, ensuring their interests are taken into account.