Are You Properly Insured As A Landlord?

A Guide To Ensuring You Are Insured As A Landlord | Middletons Solicitors

With many people using buy to let property as a positive way to get their savings earning money for them, just what are the risks you face as a landlord? You may fall into being a landlord, particularly if you inherit a house from a parent when they die, but you may not be aware of the kinds of situations which could arise and may expose you to risk.
Insurance company AXA commissioned a survey which suggests that a quarter of all landlords are underinsured and what starts out as a great way to raise an additional income, could turn out to be a financial nightmare.
Insurance companies treat all tenants as a higher risk category, particularly students. By only insuring your home with householders insurance, you may not be covered at all as you could invalidate your policy by not informing your insurance company that your property accommodates tenants. This could potentially leave you very vulnerable.

You should at the very least have buildings insurance and if your property is fully furnished, contents insurance to cover your items such as furniture and appliances. This insurance will not cover your tenants’ belongings though and they will need to arrange their own insurance.

Consider whether your landlord policy should include accidental and malicious damage caused by your tenants. This could include red wine on the carpet or perhaps your tenant has maliciously stripped out the entire kitchen and its units.
Protecting yourself against a personal injury claim from your tenant is vital and public liability should be included. Your policy will be invaluable in protecting you against paying any legal costs and compensation to your tenant.
Evicting a tenant can be one of the most costly legal problems you could face as a landlord, with one couple paying £26,000 to evict a tenant from their property. Legal expenses cover will help you to avoid these huge legal costs and protect yourself and your property.
In addition to all of the issues you face when you have a tenant in the property, you might also invalidate your insurance policy when you don’t have a tenant in the property. It is vital to check the terms of your insurance to make sure that you do not fall foul of the small print.
Most landlords have nice tenants who pay their rent on time and cause no issues at all, however this is not always the case. Protecting yourself with the proper level of cover and seeking specialist legal advice when things do go wrong, is crucial.

For more information about this article or any aspect of our commercial property legal services, please call Sarah Gratton in our Warminster office on 01985 214444,  or email sgratton@mulaw.co.uk and we will be delighted to help you (there is no charge for initial telephone discussions).