Landlord insurance
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Landlord insurance is similar to normal household insurance cover except it is specifically designed for buy to let properties. This part of the policy covers landlords in the event of somebody being injured or killed while on their property. It also protects landlords against any tenant who opts to sue following an accident. Those who let to students may find this type of cover is a requirement of their university, while local authorities often stipulate a minimum level when letting to applicants on housing benefit. Landlord liability insurance is sometimes offered as part of another landlord policy, but if it is not, it is well worth taking out. You may think if you’re letting to relatives that this is “safer” than letting to tenants you don’t know, and therefore insurance may not be required. However your standard home insurance will not cover your relatives if you’re not living there yourself.
Buildings insurance is widely considered to be the most important type of cover and a priority for all landlords. Mortgage lenders are likely to insist on a landlord holding a policy – and even those without a mortgage are advised to cover themselves. A good policy will cover the cost of rebuilding or repairing a property should it be affected by issues such as storms, floods, vandalism, fire, damage to water or heating systems, subsidence, falling trees and much more. Your policy will also cover loss of rent, but only in the case of an insured peril (in the event of a claim), such as a fire or flood. Buildings insurance will, in many cases, cover malicious damage by tenants, providing a further benefit to landlords. This means it is highly advisable to have buildings and contents insurance, and a written tenancy agreement in place, even if they are family! However your standard home insurance will not cover your relatives if you’re not living there yourself.