There are lots of things to think about before becoming a landlord, from finding a property in the right area, marketing it successfully to the target tenants, and making sure it passes health and safety standards. Something else to also bear in mind when letting out a residence is having a comprehensive landlords’ insurance policy.
Perhaps the most important thing this type of cover protects against is damage to the property. If the building was destroyed or uninhabitable due to a fire, flooding, or vandalism, not only would the owner lose a substantial amount of money in the value of the property, but they would also lose their monthly income. Therefore, having protection in these events is essential, otherwise they could be left heavily out of pocket.
It is also worth having landlord insurance so any damage to the contents of the home, such as appliances, inbuilt furniture, fixtures, and fittings, are covered. Landlords can find themselves having to spend a lot on maintaining the property or repairing faults, so it is wise to have a policy that covers these incidences, as bills can quickly stack up.
Perhaps more concerning is the risk of tenants blaming property owners should they become injured or incur an accident while living in the residence. Landlords could be found liable for these incidences and be forced to pay a significant amount of money in compensation. Therefore, insurance would protect them, preventing their bank balances from being hit as a result.
This comes after Mortgage Strategy revealed 48 per cent of landlords are considering taking out insurance to protect their income, as the cost-of-living crisis means tenants could struggle to pay their rent. This covers any lost rent due to an empty property or failure of tenants to pay their monthly fees.
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