Landlord Insurance protects rental property assets
UK private rental sector (PRS) landlords need to protect their buy-to-let property investments and landlord insurance is just one aspect that can be well worth the initial financial outlay.
Rental property is an important, income producing asset for PRS landlords, and some degree of financial protection is required to cover the fabric of the building and protect the interests of the Buy-To-Let mortgage lender as well as safeguarding the landlord’s rental yields.
The importance of landlord insurance cannot be over emphasised, although there are a number of situations that could arise unexpectedly in the course of letting property to tenants.
Some of the common problems that landlords must face include:
- Accidental damage
- Loss of rental income
- Legal liabilities when tenants misuse the property
- Damages to the structure of the building and much worse.
In such situations there are benefits for landlords with specialist landlord insurance:
- Protection Of Investment
It is important for UK PRS landlords to remember that rental property is an investment asset, but when rented to tenants, safety and security is in their hands.
There is often a great deal of worry for landlords when letting to new tenants, especially for those landlords who fail to take the appropriate precautions such as tenant referencing or seeking additional working home owner family members to act as guarantors for the new tenants.
The age old worry that tenants will misuse, neglect or abuse the rental property is a natural instinct, however, landlords insurance can help to give landlords peace of mind that the rental property is protected.
- Receive Rent
If landlords were not insured and the tenant stopped paying rent, breaking the rental agreement, it may be very difficult for the landlord to recover money from the tenant.
With many landlords’ insurance policies, landlords will be covered for loss of rent up to an agreed maximum, ensuring that rental incomes are covered. Some insurance policies also cover landlords if they face losing out on rent due to the fact that they are waiting for the rental property to be repaired.
- Repair Property Quickly
When it comes to damage of the rental property by a tenant, landlords can receive compensation for the cost of replacement or repair of the individual item in question.
This means that landlords can be sure that the rental property will be back to normal as soon as possible, and claims are supported throughout the whole process.
- Flexible Payments
Choosing a landlords insurance policy that suits the needs of landlords can be very simple, often there are flexible payment options available, allowing landlords to make regular monthly payments to ensure that their property remains protected
Not only do landlords benefit from the fact that they know exactly how much they are paying each month, they will be covered for emergency repairs or accidental damage during the annual cover provided by many insurers.
If landlords do not have the right landlord or buildings insurance, then there could be a time when landlords simply cannot afford to make good on certain expensive repairs.
If landlords own more than one property then costs can be greatly reduced by utilising block or portfolio insurance, saving landlords time, money and stress when it comes to managing problems with various properties.
For all UK PRS landlords, insurance provides peace of mind
When it comes to finding tenants for property, you never know what might happen, while it is important to exercise caution when accepting tenants, landlords insurance means that you can be sure there will never be irreparable damage done to the rental property.