Landlord Insurance Tips: Protecting Your Property Investment

Being a landlord comes with plenty to think about, and insurance is one of those things that's very easy to renew each year without really looking at what's underneath it.

But landlord insurance isn't just about insuring the bricks and mortar.

I've dealt with plenty of landlord risks over the years, and there are a few areas I think are particularly worth checking.

Modern block of flats representing landlord and property insurance in Eastbourne

Is your rebuild value actually right?

One of the first things I'll ask about is the rebuild value of the property.

This isn't the same as its market value or what you paid for it. It's the estimated cost of rebuilding the property following a total loss.

Underinsuring a building can cause serious problems at claim stage, so don't simply carry forward an old figure year after year without considering whether it's still appropriate.

Think about what happens if your tenant can't live there

A major fire, flood or escape of water could leave a property uninhabitable for a considerable period.

Repairing the building is one thing, but what happens to your rental income in the meantime?

That's why I pay particular attention to Loss of Rent and Alternative Accommodation cover, including how long the policy will provide that protection.

As with business insurance, sometimes 12 months simply isn't long enough following a major loss.

Rent Guarantee and Legal Expenses aren't the same thing

This is something landlords can understandably get confused about.

Legal Expenses can help with certain legal costs and disputes, whereas Rent Guarantee is specifically designed to protect against qualifying unpaid rent, subject to the insurer's terms and referencing requirements.

If Rent Guarantee is important to you, make sure you actually have it rather than assuming it's included within your landlord policy.

And check the referencing requirements before the tenant moves in. Waiting until rent stops being paid is too late.

Tell your insurer when the property becomes empty

This is a big one.

If a tenant moves out and the property becomes unoccupied, tell your broker or insurer.

The cover available for an empty property can be very different from the cover provided while it's occupied. There may also be requirements around inspections, utilities, security and how long the property can remain empty.

Don't assume your normal landlord cover simply carries on unchanged.

Cheap landlord insurance isn't always cheap

As with any insurance, there's nothing wrong with finding a competitive premium.

But make sure you're comparing the cover as well as the price.

Look at the excesses, Loss of Rent period, Property Owners' Liability, Legal Expenses, accidental damage and any conditions or exclusions applying to the property.

I'd rather know exactly what we're insuring at the beginning than discover a problem when a landlord needs to claim.

Landlord insurance in Eastbourne, East Sussex and across the UK

At Flintwise Insurance Brokers, I arrange landlord and property insurance for clients locally in Eastbourne and East Sussex, as well as landlords across the UK.

I take the time to understand the property, how it's occupied and what you actually need from the insurance rather than simply finding the quickest quote.

If you'd like me to review your existing landlord insurance or you're approaching renewal, feel free to get in touch.

For insurance that's wise, think Flintwise.