Cheap House Insurance For Landlords

Buying and letting out a house or a flat can be a great financial decision for the savvy landlord. The best thing about this long-term investment is that it can continue generating income for as long as you own the property. Unfortunately, there are also plenty of risks inherent in letting out your property. If you choose to rent out a house or a flat, then there’s one thing that you can’t do without: cheap house insurance.

Typical house insurance includes buildings insurance and contents insurance. However, as a landlord, you have very specific needs that might not be met by those policies.

Imagine this terrible scenario:

A burst pipe fills the basement of your property with water. Your renters are forced to leave the premises for repairs – but as they’re leaving, one of them slips on a puddle of water and hurts his back. All of a sudden, you find yourself on the receiving end of a lawsuit, both for your tenant’s accident and for the cost of alternate accommodations while they’re waiting for the house to be liveable again. Not only do you have to worry about loss of rent and repairs, you’re also losing sleep over legal fees. As days stretch into weeks, tensions rise – and so do your costs.

Typical buildings and contents insurance simply won’t help you in this situation. What you really need is Buy-To-Let or landlord insurance.

Here are some of the things that you need to consider when shopping for landlord insurance:

buildings insurance:
As with any property, it’s important to have buildings insurance that will cover the full cost of rebuilding in case of a disaster. Make sure that you insure only the rebuilding cost and not the market value of your property, since the market value is almost certainly the higher of the two.

contents insurance:
This will, of course, depend on your personal situation. If you’re letting an unfurnished house or flat, then this will be less important. But if you’re letting a furnished or semi-furnished property, then you need to make sure that you’ll have enough coverage to replace the contents if needed.

liability:
If a tenant gets injured on the premises, you may find yourself held liable. Liability insurance can help protect you from this eventuality. Remember that it’s your responsibility to keep your property safe and well-maintained at all times.

legal expenses:
As a landlord, you may someday find yourself on the receiving end of a lawsuit, or you might find yourself trying to legally evict a tenant. Regardless of the circumstances, it’s very stressful to be caught in a legal battle. While insurance coverage for legal expenses won’t make the stress go away altogether, it can alleviate some of your financial worries.

loss of rent:
If your property is seriously damaged, it might take a very long to repair it. As weeks stretch into months, you might find your finances stretched to the limit. In the worst case scenario, loss of rent can put you in arrears on your mortgage. Insurance can help protect you from this eventuality.

unoccupied coverage:
If your property is left unoccupied for any period of time, then you might need special insurance to protect it. Most basic insurance policies limit the amount of time that a property can be left unoccupied.

paying for your tenants’ alternate accommodations:
Should your tenants be forced to find alternate accommodations while waiting for repairs to be completed on your property, you might find yourself responsible for the cost. This insurance can help mitigate the expenses until your tenants can move back in.

accidental damage:
The fact is that oftentimes tenants are not as careful with the property as the owner would be. As a landlord, you might want to opt for accidental damage insurance to cover any unforeseen situations in your flat or house.

Not all insurance policies will include all of these options. As a landlord, you’ll have to decide which add-ons are most useful to you, and which ones you’re willing to pay for. The cheapest, most basic insurance option is not always the best one. You have to strike a balance between your needs and how much it’s going to cost you.

With the recent rise in online insurance comparison sites, insurers find themselves scrambling to provide the best deals and attract more customers. A quick comparison on any of these sites will provide you with a variety of options to choose from. While all landlords hope to avoid major problems with their properties or their tenants, it’s important to protect yourself – and your investment – with cheap house insurance for landlords.

Sam Jones the author advises readers looking for cheap house insurance to visit the price comparison website, uSwitch where all the main providers can be conpared.