All Landlord Insurance policies are different, with varying premiums and excess amounts too, but basically Landlord’s Insurance is designed specifically for rental properties and will cover physical damage to the property caused by tenants. It can also provide cover in situations such as the death of a tenant, theft, unpaid rent, or if a tenant engages in illegal activity on the rented premises.
Some policies cover the physical building only and others will include contents too – such as wall and floor coverings or any fixtures, fittings and appliances that are on the premises and listed as part of the rental agreement between tenant and landlord.
It’s important to shop around. Insurance is a highly competitive industry and some insurers offer better cover than others in this particular area.
It’s also critical to read the fine print, so you know exactly what your policy will cover. Some policies will cover rent for periods of time if tenants need to move out (in case of fire or flood for example). Others will not cover a property that is self-managed by the Landlord. In many cases the insurance becomes invalid if the Landlord actually moves into the property. If you have a ‘casual let’ or ‘holiday let’ property then you need to find specific cover for this.
Whether or not you take Landlord’s Insurance is entirely up to you. But like all insurance, if you have the appropriate cover, then it can really make a stressful time much easier when things do go wrong.