To help answer any questions you may have about landlord insurance our business partners, CLEAR Insurance Group, have put together this guide to make sure you find the right cover for you. To find out more and arrange a FREE insurance consultation click here: FREE consultation
Landlord insurance can help you to protect yourself, your property (or properties) and your tenants. Standard home insurance policies are not designed to provide cover for rental activities and mortgage lenders tend to ask landlords to take out more specialised insurance.
Although different policies may include different levels of cover, a landlord insurance policy tends to have specialist cover for things such as:
- Loss of rent
- Damage to your property
- Claims made against you if someone is injured in your property
Is it a legal requirement to have landlord insurance?
There’s no legal obligation for a landlord to have a dedicated landlord insurance policy, although a normal home insurance policy will not provide cover for rental activities – so if you let to tenants without a landlord policy in place then you are leaving yourself open to financial risk.
If you have a mortgage on your property, it is likely that your mortgage lender might require you to have landlord insurance in place before you let the property to tenants.
What cover does landlord insurance provide?
A landlord insurance policy can be made up of a range of different covers, depending on your own individual needs. These typically include: Buildings insurance, Contents insurance, Rent guarantee insurance and Home emergency cover.
Landlord buildings insurance
Buildings insurance for landlords typically offers cover up to a certain amount (known as the ‘sum insured) to insure the structure of the buildings along with any fixtures and fittings, in case they are damaged in a fire, flood, storm or other accident.
Landlord contents insurance
You may find that buildings insurance provides the level of cover you need, but if you are letting out a furnished property you should also consider landlord contents insurance.
Even if you are letting an unfurnished property you should consider contents insurance, which can include curtains, carpets, white goods and other kitchen appliances – providing peace of mind if anything is damaged in your property.
Rent guarantee insurance
Rental guarantee insurance for landlords provides cover for unpaid rent up to a certain amount and over an agreed period of time. This can help you to meet mortgage payments on a property even if the rent has not been paid.
Rent guarantee insurance from CLEAR Insurance Group also provides cover for evicting tenants for non-payment of rent or continuing to occupy the property after the end of the tenancy.
The unpaid rent until vacant possession is obtained provided that:
- The property is “residential” property let under an assured shorthold tenancy.
- The tenant has passed a tenant reference check.
- A deposit and the first month’s rent has been paid.
- Contractual and statutory notices have been issued.
Home emergency cover
Home emergency cover protects landlords and their tenants during unexpected emergencies, such as plumbing system problems, security issues, vermin infestations and more.
CLEAR Insurance Group provides cover for:
- Plumbing and drainage – Damage to or failure of the plumbing and drainage system where internal flooding or water damage is a likely consequence. Blocked toilet and blocked external drains within the boundaries of the property where this can be resolved by jetting.
- Main heating system – The sudden failure to function of the central heating system in the home.
- Domestic power supply – The failure of the internal domestic electricity, gas and water supplies within the home but not the failure of the mains supply.
- Home security – Damage to, or the failure of, external doors, windows or locks, compromising the security of the home.
- Cooking facilities – Assistance to restore a means of heating and preparing food.
- Lost keys – The loss of the only available set of keys to the home if you cannot replace them, or gain normal access.
- Pest infestation – The removal of wasp and hornet nests, house mice and field mice, rats and cockroaches.
- And much more…
Get a FREE landlord insurance consultation
If your landlord insurance is up for renewal soon, or if you would just like to find out more about the cover provided by CLEAR Insurance Group, contact them today to get a free consultation.
CLEAR Insurance Group have extensive expertise in the property sector and access to a wide range of insurers to help NetRent landlords.
Get a free consultation now click here: FREE consultation
Cover features include:
- Wider Cover including subsidence and contents.
- Low excess levels starting at £100 (£1,000 for subsidence).
- Inflation proofing via index linking or “Day one” increases.
- Loss of rental income at 30% based on 36 month indemnity period. (Other limits are available)
- Property owners’ liability cover at £5M (Option for increase to £10M is available).
- Theft and malicious damage by tenants
- Accidental Damage cover
- Including cover for illegal cultivation of drugs (Dependent on Insurer)
- Flexible approach to temporary un-occupancy between 60 and 90 days.
- All tenant and property types accepted.
- Residential, commercial or mixed property.
- Occupied and unoccupied property.
- Single properties or portfolios, including mixed portfolios.
- Contents only option.
Clear Insurance Management Limited is an independent insurance broker which is authorised and regulated by the Financial Conduct Authority (FCA). Registered number 307982. Registered office: 1 Great Tower Street, London. EC3R 5AA.