How important is landlord insurance?
In order to understand how important landlord insurance is we first need to understand what it comprises of. Typically landlord insurance is a package products built on the foundation of contents insurance.
Understanding what landlord insurance is so you can decide if it important.
Added to contents coverage is the mandatory buildings insurance. This product has been made compulsory by the UK government for any building being rented out. Buildings insurance is also often compulsory for mortgages to be agreed. The only case where landlords do not require buildings insurance is for leasehold properties. In these cases the lease owner will be responsible for the buildings insurance.
There are a number of other important insurance products that can also be considered as part of a landlord insurance package. These can include non payment of rent coverage, malicious damage coverage. Some landlords consider coverage for loss of earnings and the housing costs, if for example your house is no longer habitable for your tenants. Most significantly liability for accidents is typically included in Landlord insurance.
Assessing the importance of landlord insurance.
Now with a good understanding of what a landlords insurance package is, we can start to break it down and consider its importance. The margin of profit the most landlords make is quite slim on each property. The average UK landlord makes £343 rental profit each month. It is usually the small profits in property investment that lead landlords to assess the importance of insurance. On first impressions reducing the costs of non mandatory insurance policies can seem like a good economy.
In order to assess important load insurance is you could start by performing a risk assessment of your property. Doing this will Enable be able to uncover all of the potential dangers that might results in a law suit. It is rare a landlord doing this will come away feeling confident that they do not need it least liability insurance.
The UK is becoming an increasing litigious country. Slips, trips and falls are increasing comprising a significant number of lawsuits. It is hard to avoid these even within all preventative measures in place to avoid it.
For example in 2016 an elderly woman was awarded compensation for a trip that happened at home. Work was being carried out on her bungalow and the floor was not replaced on schedule. In light of news like this, it is hard to dismiss non-mandatory insurance as non-essential.
The good news is that adding Liability coverage to your landlord insurance is surprisingly affordable. This type of insurance package is available from £79. Many landlords are surprised that specialist coverage is available for this price. Often landlord insurance does not cost more then buildings and contents insurance.
We consider specialist liability insurance coverage the underpinning reason landlord insurance is important. However there are a range of other levels of cover that we find often give our customers the peace of mind they need. With such an important investment you need to know it is secure and land lord insurance can offer this.
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