What is it?

If you rent out commercial or residential property, you need to ensure it is adequately insured. Cover can be provided for the building, contents, loss of rent, public liability and your obligations to tenants, but it varies greatly from one policy to another. For example, does it include malicious damage by tenants and, if so, what are the limits of cover? Prima will check these important details.

Commercial

This is required when you rent out part or all of a building you own, and can cover a wide range of uses including business, educational or religious. Remember, different uses may bring varying levels of risk, something to be factored in when agreeing to the tenancy.

In addition, you need to make sure your insurance covers the full rebuild cost of your premises, not its market value, should it be severely damaged by fire, flood, etc.  Again, we will see that significant costs such as debris removal, site clearance, and architects fees are covered.

Residential

As with commercial, this can be arranged for a single building or a portfolio of properties. It can, and should, also extend to unoccupied premises. For landlords with portfolios, a single date for all premium payments can be arranged if preferred.

In addition, the same rules apply about ensuring cover extends to the full rebuild cost of your property. If you are unsure about this, you can employ a RICS (Royal Institute of Chartered Surveyors) approved surveyor to give you a figure.

Prima always works closely with clients to reduce the risk attached to their insurance proposal, so they can get the most competitive quote. In the case of landlords, this is aligned with your legal responsibilities to provide safe rented accommodation.  So, for example, you must ensure all gas and electrical systems have been professionally tested and approved and that fire safety regulations are being followed.

FAQ

Is it a legal requirement to have landlord insurance?

There is no legal requirement that you obtain landlord insurance, but most buy-to-let mortgages require that you do. However, You should have landlord insurance if you rent out properties. It covers the same kinds of risks that your standard home insurance covers, as well as those that come along with a rental business - whether you rent out one house or ten apartments.

What if your tenants can't pay the rent?

In case you have trouble making sure tenants pay rent, these guidelines can help you keep track of the payments and recover the money owed to you.

  • Keep a record of payments
  • Write to the tenant
  • Send a letter to the guarantor
  • Claim possession of your property
  • Go to court

 

What is an excess?

An excess is the amount(s) of money you pay or must contribute towards the costs of your claim. All excess amounts relevant to your insurance coverage are listed on your Certificate of Insurance. If you choose Real Insurance for Landlords Insurance, you can specify your level of excess. You will generally pay less for a policy with a higher excess.