Whether you are intending to let out your residential home for a short period of time, whether you have a holiday home that you wish to let out for part of the year, or whether you are building or have built a portfolio of buy-to-let properties, you will need to have Landlord’s insurance.
The only legal requirement is that you have landlord’s liability cover plus, if you employ anybody as part of the letting business, employee liability cover. The first of these is there to protect the rights of the tenant should he or she suffer any injury or loss as a result of the actions (or inactions) of the landlord, and/or any defects in the actual building. The second is to protect the rights of an employee should they suffer personal injury or loss.
However, it only makes good sense to also insure the buildings and the contents that belong to the landlord, such as the endsleigh cheap home insurance that you can learn more about by visiting the endsleigh website.
The buildings part of the insurance cover is the same as conventional buildings insurance and provides cover for the cost of rebuilding the property including the cost of replacing the fittings and fixtures.
Contents insurance covers any furniture that belongs to the landlord, floor coverings (sometimes excluding carpets and laminate floors) and anything else that is portable such as white goods and other appliances.
There are also a number of optional insurance add-ons. These include rent guarantee and squatters insurance.
Rent guarantee is an insurance cover that compensates for loss of rent arising from any tenants failing to pay their rent. It also covers the legal costs of evicting these tenants. Generally the rental amount will be paid until the tenants have been successfully evicted or for a year, whichever is the first to occur.
Squatters insurance provides cover for losses arising from having the building occupied by squatters, including the cost of evicting them.