Cheap Landlord Insurance

Landlord insurance is a specialised insurance product which is tailored to suit your needs as the owner of a buy-to-let property. You can be covered for a range of different types of insurance, such as property damage, legal disputes, loss of income, liability protection, and contents insurance. It is not a legal requirement in the UK, but it’s generally thought to be a sensible idea. Being a landlord presents a list of risks which you might never consider, such as the following:

Rent

You rely on rent payments as a landlord, so when tenants default their payments this can cause huge amounts of stress and financial issues, especially if utilities are included in the agreement. Vacant periods and evictions can be lengthy and expensive, so some landlord insurance policies offer cover for this loss of income, either included in the policy or as an add-on.

Property Damage

Alongside most homeowners, landlords also have to deal with the risks of fire, floods, extreme weather, and structural issues. These things are completely out of your control but can have a huge impact on both your property and your wallet; you might not be able to generate rental income for a while. Luckily, this is covered by most landlord and/or buildings insurance policies.

Damage Caused by Tenants

Although many landlords are careful about accepting tenants, accidents happen and there’s always the possibility of damage to the property. This could be everyday dings and scratches, or it could be bigger issues caused by carelessness, or perhaps even deliberately. Sometimes a tenant might cause damage which is more expensive to repair than their deposit, so in this scenario you might need to make a claim.

Maintenance

Alongside the regular upkeep and maintenance of a property, landlords also have an obligation to repair unexpected issues. Plumbing problems, electrical faults, and heating system breakdowns can be expensive, and often need immediate attention so that your property remains habitable.

Legal Issues

As a landlord, you have legal responsibilities towards the local council, government bodies, and your tenants. Tenants especially can raise disputes relating to deposits, rent, or eviction, which can hugely impact your financial position in the form of legal fees.

Public Liability

If an accident occurs within your rental property, you could be held liable for any injuries or damage to a tenant or their belongings. As a result, if the space you’re renting is considered unsafe, it can result in significant legal and compensation costs.