"What insurance should you get as a landlord?" is a common question from landlords in Northampton with Buy To Let properties. Landlords with a mortgage should already have adequate building insurance, as it's usually a lender requirement. However, landlords who own a property outright should also insure their investment for its rebuild cost. Cover should also be in place for damage caused by floods, fire, and storms. Other risks are involved in renting out a property in Northampton. As well as buildings insurance, put suitable protection in place, so you’ll be financially covered if something goes wrong.
Sadly, at Horts, we have experienced some landlords take a significant financial hit when something unexpected happens to their property. To avoid this, you should consider landlord insurance to cover the following:
What Insurance Should You Get As A Landlord?
1. Property Contents
Good home contents cover is essential if you’re letting a fully furnished rental property in Northampton. However, even if you’re renting your property unfurnished, you will still have some contents in the property. For example, curtains, carpets, white goods, and light fixtures and fittings. The bill will be high if everything needs to be replaced, so consider additional contents cover.
2. Damage Caused By A Tenant
If your tenant causes accidental damage to your property and you can prove it, it’s usually possible to retain their deposit to pay for the repairs. But what happens if the damage was intentional and the repair cost is higher than the deposit amount? Malicious damage insurance will cover your repair bill in this eventuality. Some insurers will include damage by tenants, and some won't, so you will need to check the policy and any excess that applies.
3. Public Liability Cover
If a tenant, visitor, or contractor is injured in or on the property and thinks it was your fault, they could take you to court for compensation. Public liability insurance covers any compensation awarded plus your total legal costs.
4. Costs For Alternative Accommodation
Should the rental property in Northampton be so severely damaged that the tenants need to be relocated while repairs are completed, incurring additional costs to cover alternative accommodation could be expensive. This insurance will ensure you won’t take a financial hit.
5. Legal Expenses And Rent Protection
If you’ve never taken out insurance for legal expenses and rent protection, then you should consider this. If your tenant defaults on their rent, your income will be protected. Not only this, but the expense of evicting the tenant will also be covered.
Although there’s a lot to think about with landlord insurance, giving yourself as much protection as possible against any unexpected and costly bills makes sense. As a landlord in Northampton, you could end up out of pocket if you fail to consider all the potential risks. With adequate insurance, you can enjoy peace of mind knowing your income is safe and you won’t get any unpleasant financial shocks.
Our professional team are ready to advise you and help manage your rental property in Northampton. Look no further than Horts! As property management experts in Northampton, we’re on hand to make your life as a landlord more manageable and profitable!
What Next?
Call us on 01604 639933 or visit our website to learn how we help landlords like you.
