Letting a property brings income, but it also brings risks. Fires, floods, accidental damage, legal disputes and missed rent can all affect your investment. Landlord Property Protection is designed to protect you against many of these risks, but policies vary widely in what they cover. Some landlords pay for cover they do not need, while others discover gaps only when they make a claim. This guide explains the main types of landlord Property Protection and how to choose the right cover.
Why Standard Home Cover Is Not Enough
Standard home Property Protection policies are designed for owner-occupiers. Most do not cover properties that are let to tenants, and failing to tell your insurer that a property is rented could invalidate your policy. If you let a property, you usually need a specialist landlord policy.
If you have a buy-to-let mortgage, your lender will normally require buildings Property Protection as a condition of the loan.
Buildings Property Protection
Buildings Property Protection covers the structure of the property, including walls, roof, floors and permanent fixtures such as kitchens and bathrooms. It typically protects against events such as fire, flood, storm damage, subsidence, burst pipes and vandalism.
Make sure your property is insured for its rebuild cost, not its market value. The rebuild cost is the amount needed to reconstruct the building from scratch, which can be higher or lower than its market value. Underinsuring could mean your claim is reduced.
If you own a leasehold flat, buildings Property Protection is often arranged by the freeholder or managing agent and paid through the service charge. Check before buying your own policy.
Contents Property Protection
If you let your property furnished or part-furnished, landlord contents Property Protection covers items you own, such as furniture, carpets, curtains and appliances. It does not cover your tenants’ belongings. Tenants should arrange their own contents Property Protection .
Even in unfurnished properties, you may want cover for items such as carpets, white goods and window coverings.
Property Owner’s Liability
Property owner’s liability Property Protection protects you if a tenant, visitor or member of the public is injured, or their property is damaged, because of a problem with your property. For example, if someone is hurt by a loose stair rail or falling roof tile, liability cover can help with legal costs and compensation.
This cover is often included in landlord buildings policies, but always check the limit of cover.
Loss of Rent Cover
If your property becomes uninhabitable because of an insured event, such as a fire or major flood, loss of rent cover can replace the rental income you lose while repairs are carried out. It may also cover the cost of alternative accommodation for tenants in some situations.
Note that this is different from rent guarantee Property Protection , which covers tenants failing to pay.
Rent Guarantee Property Protection
Rent guarantee Property Protection covers you if a tenant stops paying rent. Policies usually require tenants to pass specific referencing checks before the tenancy starts. They may pay rent for a set period while you take steps to recover arrears or regain possession.
Check the policy terms carefully, including excess periods, maximum payout limits and referencing requirements.
Legal Expenses Cover
Legal expenses Property Protection helps with the cost of legal action, such as pursuing rent arrears, regaining possession or handling disputes. With the rules for ending tenancies in England having changed under the Renters’ Rights Act, legal support can be particularly valuable if a dispute arises.
Accidental and Malicious Damage
Many standard policies exclude accidental damage, such as a tenant spilling paint on a carpet, or malicious damage caused deliberately by tenants. These can often be added as optional extras. Consider your property and furnishings when deciding whether this cover is worthwhile.
Unoccupied Property Cover
Most landlord policies have restrictions if a property is empty for an extended period, often 30 or 60 days. If your property is likely to be vacant between tenancies or during renovation, check the conditions and consider specialist cover if needed.
How to Choose the Right Policy
- Check the rebuild cost and make sure it is accurate
- Decide whether you need contents cover based on how the property is let
- Compare liability limits
- Consider rent guarantee and legal expenses cover based on your risk tolerance
- Read the exclusions and conditions carefully
- Compare excesses, not just premiums
The cheapest policy is not always the best value if it leaves important gaps.
Final Thoughts
The right landlord Property Protection protects your property, your income and your peace of mind. If you are buying a property to let in Essex, speak to Saffron walden estate agents who can help you find a suitable investment property and give you realistic figures to factor Property Protection and other running costs into your plans.