What is Landlord’s Insurance?
Landlord’s insurance is a policy that covers a property owner from financial losses to rental properties. The policy covers the building with the option of insuring any contents that belong to the landlord. Landlord’s insurance is often called buy-to-let insurance but buy-to-let insurance is a type of landlord’s insurance. It is important to distinguish between buy-to-let insurance, which generally covers one property that has been purchased with a buy-to-let mortgage, and multi-property insurance, which covers two or more properties. Each of these types of landlord’s insurance covers different things.
What is Usually Covered by Landlord’s Insurance?
The policy will normally cover standard perils such as fire, lightning, explosion, earthquake, storm, flood, escape of water or oil, sinking ground, theft, and malicious damage. Each insurance policy is different and may or may not include all of these items. Optional coverage can include accidental damage, malicious damage by tenant, terrorism, legal protection, alternative accommodation costs, contents insurance, rent guarantee insurance, and liability coverage.
Landlord’s insurance policies typically do not cover any personal property belonging to tenants or otherwise protect the interest of tenants, though a liability policy protecting a landlord or property manager benefits tenants should they incur a loss for which the landlord is responsible.
Contact us to learn more about the right landlord’s insurance policy for your property.