Landlord Insurance UK – Counting The Cost

So you’ve bought a buy to let property and you’re ready to rent it out. Your buy to let mortgage provider will undoubtedly insist that you have buildings insurance in place from the very start and some will also insist on contents insurance…but what about landlord insurance uk? A few mortgage providers are now insisting you take out a landlord insurance policy as well, or in place or buildings and contents, but if they don’t is it worth the additional monthly cost?

The cost of having landlord’s insurance UK

As with any other type of insurance product, landlord insurance varies from one policy to the next. Whereas one landlord might want to include things like ‘accidental damage to fixtures and fittings’ another might not, and so on. The more inclusions you add to your insurance policy the more expensive it becomes, but this is nothing new in the world of insurance.

With more and more people choosing to invest in buy to let properties the landlord insurance market has really opened up and the vast majority of the big names now offer policies.

Today it is possible to buy a basic policy that covers the contents, fixtures and fittings that belong to the landlord for around £10 per month. This means that things like carpets, curtains, light fittings, windows, doors, cookers and white goods, and any other furniture are all covered against accidental damage and theft caused by the tenant. To this you can add things like damage caused by flooding and fire, loss of rent through the property being deemed uninhabitable and the cost of alternative accommodation for your tenants while your property is being repaired.

A comprehensive landlord insurance policy that covers most eventualities can often be bought for between £30 and £40 per month, depending on the value of the property and the exact terms and conditions. This may seem like a large outlay but when you consider the cost of not having landlord insurance it pales in comparison.

The cost of not having landlord insurance

Let’s say for example that your tenant accidentally sets fire to something on the hob and the fire engulfs a section of the kitchen before the fire service get there. The property is deemed uninhabitable and your tenants are forced to move out temporarily.

With a regular buildings and contents insurance policy the repairs and the cost of a new cooker will often be covered (although some may not pay out on the basis that the damage was caused by a tenant in rented accommodation). This is all well and good but while the damage is being repaired you are losing out on rent payments.

A landlord insurance UK policy can include rent payments for up to 36 months, plus it can help to cover the cost of alternative accommodation for your tenants (if the cost is higher than the rental amount they are paying you). This means that not only is all repair work paid for, you don’t lose out on your vital monthly income.

If you take the time to tailor your landlord insurance policy to your exact needs you can easily cover most common tenant-induced mishaps…and it only takes one mishap to prove the cost of landlord insurance far outweighs the cost of not having it.