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Landlord Insurance
Landlords have special requirements compared to owner-occupiers and insurance companies offer a range of specialist landlord insurance policies.
When insuring a property you own that is occupied by tenants it is important to ensure that you have the correct cover and that you have declared the fullest possible details to the insurance company about the nature of the risks. If you do not disclose all relevant facts, this could invalidate the policy and mean that the insurance company may refuse to pay out on a claim, whatever the cause.
Residential property protection for rented properties requires specialist insurance cover that may include the following items:
* Loss or damage to the building due to incidents such as: Fire, Theft, Vandalism/malicious damage, Lightning, Oil or water leakage, Smoke, Storm, Subsidence, Burst pipes, Impact from vehicles, falling trees, animals, aircraft, aerials and masts, Civil commotion, Earthquake.
* Contents. You should also consider insuring the contents against fire and theft. This may include cover for furniture, household utensils, kitchen electrical goods and soft furnishings. You may be able to extend the cover to include Accidental Damage, but not personal effects or valuables, which would normally be the responsibility of the Tenant.
* Occupation by students or Housing Benefit tenants.
* Occupation by asylum seeker, DSS or Local Authority referrals.
* Costs of rehousing a tenant, following insured damage to the property.
* Loss of rent, following insured damage to the property.
* Rent arrears and alternative accommodation in connection with repossession proceedings.
* Legal defence and legal prosecution cover, including the removal of illegal tenants.
* Public Liability cover for incidents affecting occupants or any member of the general public.
* Employers' Liability indemnity for incidents affecting cleaners, gardeners, caretakers, persons doing minor maintenance and repairs, or anyone else who is doing work for you at the property on your instructions.
* Cover between lets for unoccupied properties.
* Home emergency cover.
Both the property itself and the income it generates are valuable assets that need to be protected. If you have a mortgage on the property, the mortgagee will of course require at least the building to be fully covered.
There are many insurance companies that offer this kind of landlord insurance, but it clearly pays to look around and find a policy that not only offers good value but also covers each of the different risks.
Disclaimer: These notes are offered as a general guide only and do not constitute legal or financial advice.
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