As a landlord, you’ll know that having building insurance is crucial when renting out your property.
But did you know that landlords’ contents insurance is equally as important?
Richard Rabin, Lettings Director at Lang Town & Country, says: “Do landlords fully understand the importance of contents insurance? Certainly not from our experience, when offering landlords advice on renting their property.
“In my experience, only 20% of landlords I visit have or have thought about taking landlords’ contents insurance.
“Most landlords think that if a property is unfurnished, why would it be beneficial for them?”
What are the benefits of having landlords’ contents insurance?
Recent figures suggest that landlords could lose up to 45% of their annual rental income through tenant damage.
In fact, Goodlord reports that some 15% of UK landlords do not have landlords’ contents insurance in place.
Richard explains: “The reason for having landlords’ contents insurance in place is that it covers the fixtures and fittings in the rental property. I.e., kitchens, bathrooms, floorings etc.
“For example, you may have a leak in your property that has caused damage to the flooring and also got under the kitchen units. Should the flooring need to be replaced, then you are covered through landlords’ contents insurance.
“When taking out landlords’ contents insurance, we always advise taking out the extra accidental insurance as this also covers you for any malicious damage caused by the tenant as well.”
What is covered by landlords’ contents insurance?
We advise going with a proven company like HomeLet or Goodlord, who can provide you with comprehensive landlords’ contents insurance.
HomeLet offers two levels of cover. Limited Contents Insurance provides up to £5,000 of cover for a limited range of household items. And Full Contents Insurance offers a much more comprehensive cover level, from £10,000.
Opt for their full landlords’ contents insurance and you will get:
- Cover for carpets, curtains, sun blinds, light fittings, furniture such as beds, wardrobes, sofas, coffee tables and white goods
- New-for-old replacement of insured items
- Cover for contents if you temporarily remove them (up to 20% sum insured)
- Loss of rent or re-letting costs you may be faced with after insured damage (up to 30% sum insured)
- Full cover for properties left unoccupied for up to 90 consecutive days.
- Emergency Assistance Insurance
- Legal liability as owner, occupiers legal liability, worldwide personal liability and public liability (up to £5,000,000)
- Employers liability (up to £10,000,000)
- Variable excess level
We also advise that you include the additional cover for loss or damage caused by accidental damage or by malicious act of the tenant.
What do I need to think about before taking out landlords’ contents insurance?
The first step you need to take is to inform your insurance company that your property is to be rented, or that insurance could become null and void.
The main things you should ensure are covered by your landlords’ contents insurance are:
- Damage to your property (by the tenant)
- Loss of earnings/rehousing costs if the tenants have to move out (following an insured event)
Richard adds: “We also advise having landlords’ legal liability insurance in place which usually comes as part of the contents insurance policy. This will protect you from potential compensation claims related to your rental property.
“This will cover you if, for example, someone injures themselves or other property is damaged as a result of your property.
If you need any advice, please do get in touch with our Lettings team using the details below.
Find out more about Lang Town & Country
Lang Town & Country Lettings offers four different management services: Tenant Find, Rent Collection, Managed, and Managed +.
If you would like to know more or have any other queries, contact our team on 01752 201010 or via email at enquiries@langtownandcountry.com
We also have a dedicated expert in Hugo Oliveira, who specialises in legal areas that often catch sellers and landlords out.
Hugo is qualified in three crucial legal components that must be completed to rent or sell your home: Energy Performance Certificate (EPC), Legionella Risk Assessment, and PAT Testing.
Meet Hugo and find out more about what we can offer here.
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