Landlord insurance versus home insurance - what's the difference?
If you are a landlord renting out one or more houses, you’re likely to be aware that your insurance needs are different to those of a typical homeowner.
While home insurance is designed for an owner’s primary residence, landlord insurance is intended for properties that the owner plans to let to tenants.
Due to the fact that you have less control over the treatment and condition of a property that you don’t inhabit, insurance can prove to be vital if your properties suffer from damage or theft. The below forms of cover are likely to form a central part of your landlord insurance policy.
- Public and propery owners' liability cover:
If a tenant gets injured as a result of an accident within your property – for example, due to a fault with loose fixtures or an electrical hazard - you may be held responsible for the harm they’ve suffered. In extreme cases, you may need to provide compensation for their medical expenses and the loss of earnings your tenant faces if they’re unable to carry on with their professional duties as a result of the injury. Property owners’ liability cover can help to pay these expenses.
Similarly, suppose a member of the public gets injured following an accident linked to your property or premises –most likely while visiting one of your tenants. In such instances, public liability cover can help to bear the expenses you may incur, including hospital treatment.
- Accidental damage:
If your property structure or its contents (that were originally a part of the property) suffer damage as a result of an accident or an unexpected event, this insurance can cover the cost of repairs or replacements.
- Legal cover:
This feature is exclusive to landlords and not essential if you are looking for conventional home insurance. As a landlord, there are chances that you may get involved in a legal dispute with your tenant – commonly over tenancy deposits or late rent payments. Legal fees can be expensive and may prove costly if this cover is not included in your insurance policy.
- Alternative accommodation cover:
In the event that unforeseen events result in your property becoming uninhabitable, this cover can cover the cost of finding, and paying for alternative accommodation for your tenants during the time it takes to fix the damage.
- Landlord contents:
If you let a fully or partially furnished property, landlord contents cover can pay for repairs or replacements in the event that these items are damaged or stolen. This may also cover accidental damage to the glass sections of windows, doors, cabinets or fixtures such as lighting, plumbing and locks..
- Loss of rent:
This insures against certain events that can result in a landlord missing out on rental income. For instance, if a fire or other unexpected event damaged your property to the extent that it became uninhabitable for tenants, the insurance could cover the rental income a landlord misses out on during the time it takes to carry out sufficient repairs.