Home insurance is an important consideration for landlords, but for many 'accidental landlords' – those who have turned to renting after failing to sell their home in the post-recession property market – it can be a real challenge to figure out what insurance they need to get. Here we talk you through the kinds of insurance you'll need as a landlord.
Taking out buildings insurance is absolutely essential for landlords and will be required as part of your mortgage agreement. If your property is already insured you will need to contact your insurance provider to let them know that you will be renting out the property, as the terms of your policy may need to be adjusted. You will also need to gain clearance from your mortgage provider to rent the property out.
Many new landlords assume that it is the tenant's responsibility to take out contents insurance, and while it is true that a tenant should cover their own possessions during their time in your property, you will also need to take out contents insurance. Even if you're renting out an unfurnished property, items that are not part of the building but could still be damaged, such as the carpet, curtains, kitchen and bathroom units will need to be insured. If you're letting out a furnished or partially furnished property you may need more detailed insurance.
As well as buildings and contents insurance it's worth taking out landlord liability insurance. As a landlord you are responsible for the safety of your tenants, and landlord liability insurance will protect you should any harm come to your tenants while they are in your property.