Landlord insurance: what level of cover do you need?

The following guest blog is courtesy of RITA4Rent’s Insurance Partners, Endsleigh.

Finding appropriate cover for your investment is a key part of being a landlord. When you first started on the property investment route, your lender will have stipulated that you purchase buildings insurance as a condition of your buy-to-let mortgage. Whilst that requirement will not change for the duration of your mortgage, your insurance needs may not remain static.

 
Comprehensive cover

 
When it comes to insurance, it’s common for an individual’s prior experience to have an effect on their attitude to risk and how much cover they feel they need. Comprehensive landlord insurance will usually provide protection against risks that individuals may not have had to contend with before. These might include malicious damage by tenants or paying for alternative accommodation if a property becomes uninhabitable.

 
Cover that’s right for you

 
If you’ve been in the market for a few years or have built up a portfolio of properties, chances are that you will have seen your fair share of mishaps and incidents. As a result, your attitude to risk may have changed.

 
For example, if you’ve had tenants accidentally break appliances, you’ll have had more experience of dealing with this sort of situation and have a better understanding of the level of risk you’re exposed to. So when it comes to look at your insurance, you’ll know which cover options are important to you.

 
Finding the balance

 
There’s a balance to strike to avoid exposing yourself to too much risk. You don’t want to inadequately insure your property, as that could lead to you having to write a hefty cheque if something goes wrong and you find you’re not covered.

 
Equally there’s not much point in purchasing the most comprehensive cover if, on reflection, you feel that it isn’t really needed. It is possible, however, to find cover that best fits your particular needs and also save money. Instead of opting for the ‘packaged’ option, you can pick and choose the cover sections and limits which you feel are appropriate.

 
No matter what level of experience you have, you’ll want to be confident that the insurance you have in place is right for you. If you’ve built up a portfolio of properties, you can speak to a qualified insurance broker who can assist you in making a decision on the insurance package that suits you. They’ll guide you through the various options and make recommendations based on your situation and what’s on offer.

 
Written by Endsleigh Insurance Services Ltd.

 
Endsleigh has worked in the private rental sector for over 25 years and have become one of the leading insurance intermediaries in the UK let property market.

 

For more information on the services that Endsleigh can provide, click here. Alternatively, call 01242 217300 to speak to one of our trained advisers.

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