Landlord insurance and ordinary residential property insurance share many common features, and there are also some crucial differences. Most landlord policies cover buildings or fittings and fixtures, plus property owners’ liability insurance. There are a number of enhanced covers, such as loss of rent and accidental damage, that can be tailored to suit the particular circumstances of the property, the landlord and the tenant. These will be considered in more detail below.
The standard residential insurance policy will not usually cover the landlord against the additional risk of renting out the property. This is often a legal requirement for mortgage lenders. The main point of difference is that the landlord is running a business and the tenant is the consumer (https://www.telegraph.co.uk/property/landlord-guide/all-you-need-to-know-about-insurance/).
Landlord liability insurance
This cover protects the landlord against the cost of compensation claims that arise from injury or damage to tenants or visitors as a result of something going wrong with the property. This also covers associated legal expenses.
Landlord buildings insurance
This covers against damage to the property itself when caused by an insurable risk such as fire, flood, or vandalism and protects the structure of the building.
For both of these levels, the advantages of a detailed inventory and record of the condition of the property are evident, minimising the potential for dispute. The inventory acts as photographic and written evidence of the state of the property and is often incorporated into the signed lease.
Property inspection and inventory apps such as https://inventorybase.co.uk are now widely used to minimise and streamline administration in the preparation of property inventories and reports. Using property inventory software, on-site reports can be produced efficiently and speedily in a customised format with immediate accessibility.
Landlords and tenants have the ability to detail comments and supporting evidence throughout the duration of the tenancy. These reports can be individualised, with templates dealing with any particular property requirements.
Items such as white goods and furniture are protected against theft or damage by landlords contents cover. Fair wear and tear sustained during the course of a tenancy is excluded, hence the importance of an accurate and dynamic property inventory. There are several other self-explanatory levels of cover: loss of rent, tenant default, accidental damage, alternative accommodation, unoccupied property insurance, landlord home emergency insurance and legal expenses insurance.