It is now possible to buy contents insurance as a landlord. At first you may think as a landlord that the idea of insuring tenant’s personal contents is pointless but what about the settee, armchairs, double beds and washing machines? These are key items of furniture and white goods that tenants will use and sometimes abuse. As a landlord you can expect these items to wear and tear much faster than similar goods in your own personal abode.
It is worth bearing in mind if you own more than one buy to let property that you are renting out then you might need a staff member to help out with all the duties of running the properties. If this is the case then be sure to take out employer’s liability insurance as this is a must in UK law. If in the future an ex-employee takes you to court for injury or damage, then this insurance should cover you against that.
It is worth noting that a landlord insurance premium depends on a number of factors which will determine the levels of payment you make to your landlord insurance provider. A broker will check to see where your property is located; if it lies within a postcode where there is a high level of crime being recorded then expect your premium to be bumped slightly upward in the wrong direction. The tenants themselves are also taken into the equation too. If you are renting out to three young lads who throw parties every Friday and Saturday night then your premium will be substantially higher than if you rented out to a middle-aged accountant who works in an office every day. The age of the property is also a determining factor in the premium as is the property type (flat, maisonette, terraced house or detached house).
The broker will also check to see if there has been any claim made in the past by the landlord; regular claimants can expect a higher premium. The three landlord insurance divisions are building, contents and liability. Landlord insurance claims are always dealt with swiftly and efficiently as it is imperative for the brokers’ reputation that it does so. A broker who delays or questions any claim with too much impunity will find it puts potential landlords off and insurance salesmen will find their work considerably more difficult. Word is often known to spread among the landlord community about broker behaviour.