Commercial Landlord Insurance
Even if you’re managing just one property at the moment, as a landlord there are steps you should consider to protect yourself from some of the risks that come with renting out accommodation. That’s where commercial landlord insurance comes in. Here’s what you need to think about.
What does commercial landlord insurance cover?
While it’s not a legal requirement to have commercial landlord insurance, it could include all or some of the following levels of cover, which could go a long way to protecting your property investment:
Landlord buildings insurance
Typically, landlord buildings insurance can cover loss or damage caused to a building and could provide a pay-out if your property is damaged by fire or flood, for example. Some buildings insurance may also cover malicious damage caused by tenants.
Landlord contents insurance
If you're renting out a furnished property, landlord contents insurance will provide cover for your possessions. You can also add accidental damage cover, which could cover any spills, breaks or damage caused by your tenants. If you're renting out flats, you might want to consider cover for communal areas, such as halls, stairs and landings - this could be available as an optional extra, rather than included as standard, so always check the policy details.
Rental protection insurance
If you can't let out a property for an insured reason, say flood damage or a fire, rental protection insurance (sometimes referred to as cover for loss of rent) could cover the amount of rent you would've received over the unoccupied period. It's not typically included as standard with commercial landlord insurance, so check your policy carefully - you may have to pay extra to add it.
Unoccupied property insurance
While it's not uncommon for a property to be empty between tenants, there could be an issue if your property is left for more than 30 days. If you opt for unoccupied property insurance, your empty property could be covered against a range of risks, including theft and damage by storms, fire or flood.
Rent gauranteed insurance
A rent guaranteed insurance policy can cover your rental income if your tenants are unable to pay their rent. It can also provide cover for legal expenses (the amount varies among policies), as well as cover for any disputes relating to the recovery of rent arrears, or repossession or eviction processes, for example. Just be aware that you must have a tenancy agreement in place and the tenants must have been successfully referenced before you apply for the rent guaranteed insurance.
Property owners liability (Public liability) insurance
If one of your tenants has had an accident at your property and decides to take legal action against you, public liability insurance could cover your legal expenses, in addition to any damages that may be awarded. Liability claims can be very expensive, so many policies will give you at least £1 million limit of cover for any one claim (but it's always worth checking the details of your policy).
An optional level of cover that might want to consider if you're a landlord renting a block of flats in a large city.
Employers' liability insurance
If you employ anyone to work at your rental property (even volunteers under your control), such as a cleaner or a gardener, you'll be responsible by law for arranging employers' liability insurance.
How do I find landlord insurance that’s right for me?
That’s where we can help. Start a quote with us, answer a few simple questions and we’ll provide you with a list of suitable landlord quotes. Remember, though, that levels of cover vary among insurance providers, and it’s not all about finding the cheapest deal. Look at what’s included within each policy to ensure you find cover that matches your needs, at a price that works for you.