Which Insurance is Right for Your Property?

If you are planning to put a property on the rental market, it’s important to make sure you choose the right insurance. There’s potential for all manner of things to go wrong when you rent out a home and you want to ensure you’re covered against every eventuality.

When insuring your rental property, you will need to take out specific landlord insurance, but the exact details of your policy may vary depending on the type of building.

Take a look at our guide to see exactly what you need to consider when choosing your insurance.

Houses

If you are going to put on a house on the rental market you will need to take out both buildings and content insurance.Buildings insurance will provide financial protection for the property itself rather than its contents. If it’s damaged by an event that was beyond your control, such as fire, flood or a break-in, this policy will provide you with the necessary funds to carry out repairs or rebuilding.

Contents insurance is also a must-have. This covers all the items inside the property that belong to you from damage or theft and is particularly important if the house is fully furnished. However, it doesn’t extend to anything owned by your tenants, who are responsible for insuring their own items.

Flats

If your rental property is a flat, the insurance requirements are a little different. In the case of a leasehold flat, the building should be insured by whoever owns the freehold, meaning there is no need for you to take out buildings insurance. However, if you own any sort of stake in the freehold you may have to contribute to the policy.
Contents insurance is more or less the same for a rental flat as it is for a house.

Holiday homes

When renting out a property as a holiday house, you’ll still need the insurance policies discussed above, but you may find yourself paying extra, as this type of building is generally seen as more at risk. Holiday homes are left unoccupied for long periods, meaning they are an easy target for thieves and it often takes longer for problems to get noticed.

New-builds

If you’ve decided to put a newly built property on the market, you might benefit from lower premiums, as insurers generally see new-builds as being less at risk. However, there is a good chance you could still encounter some problems, as new buildings tend to suffer from ‘snags’ where the builder hasn’t finished the job properly.

If this is the case, you should be covered by Buildmark, which is the National House-Building Council’s ten-year construction warranty and insurance scheme, so long as your builder is registered with the organisation.

Public liability cover

Regardless of the type of property you own, you should also take out public liability cover. This will ensure you’re protected in the event of a tenant bringing a legal claim against you due to an incident that has occurred in the home, such as personal injury. Legal fees and compensation costs can be very expensive in these cases and it’s always best to be covered.

Click here for more information about home insurance for landlords.

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