subject: Landlord Insurance - A few things to know [print this page] Landlord Insurance - A few things to know
Simply knowing that you have taken out landlord insurance can save you the sudden financial outlay to rectify damage or loss to your property, while having it gives you reassurance knowing that it is there.
A variety of comprehensive landlord insurance is available. Landlords ought to carefully assess different options before buying any comprehensive landlord insurance policy.
Generally speaking comprehensive landlord insurance offers two important methods for which losses in a property can be settled. A cash value settlement' and a 'replacement value settlement'.Even though comprehensive landlord insurance covers the property and the rights of the landlords, tenants can also benefit if they are covered with renters insurance.
Simply type these terms into a search engine such as Google, Bing for more details on these. .
Of course there are a number of potential areas where landlords insurance can help.
Building cover
Minor property damage that just needs to be repaired, right up to major damage that requires the complete rebuild of the property.
Buildings cover provides financial protection against damage for such things as:
earthquakes;
subsidence (not always provided as standard with some buy to let insurance policies).
storms and flooding;
fire and smoke;
Should your tenants need to move out as a result of this damage, and you have made a successful claim, you may find that your policy may also cover compensation for loss of their rental income.
Public liability insurance
Landlords have responsibilities to the public if they are somehow injured as a result of your property. If someone decides to sue you for damages, and you don't have public liability insurance, then your responsibilities may well require you to pay them a large sum of money.
However this is often provided as standard with some landlords insurance cover.
Contents
General wear and tear over time is typically not covered by contents insurance. Accidental damage may be covered as an optional extra and may typically take one of two forms:
new for old replacement;
market value replacement.
The landlord insurance, which is appropriate for your contents, will generally depend on their value, condition and age.
Remember, do check which type of comprehensive landlord insurance is right for your needs and that having it can give you the peace of mind for knowing that you are covered.
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