Landlords Insurance From Home Shield
The Landlords Insurance Market is one that we are particularly knowledgeable of, we have specialised in this category since 2006. Whatever you need in this field of insurance, we are confident, if it can be done – we know where to get it!
Whether you have a single property let to a working family or a portfolio of several properties, we can get things sorted for you. We offer a huge range of options from Block Polices (flats), student arrangments, DSS tenants, and asylum seekers. Many landlords have agreed letting contracts directly with the council or housing associations and, even though this is a fairly new concept, we already have a panel of insurers on board to cover this.
Our dedicated adviser service means no call centres and no queues. You will be allocated your own personal adviser with email address and direct dial telephone for instant contact and continuity. We are proud to be unique!
Landlords Insurance Information
What is it?
If you own a property you are letting to a tenant regardless of it being a family member or a stranger, you are a landlord and require a landlord's insurance policy. This is a legal requirement.
Why do you need it?
You need it because if your tenant were to suffer any injury or loss they may pursue you for damages. Another reason is if the property or any person suffers damage due to an electrical fault for example, you could in some instances find yourself prosecuted, and because you do not live in the property yet own it – you are liable.
Example: An electrical fire caused by faulty wiring to a plug socket. The fire destroys the property, all of your tenant's contents, and they suffer smoke inhalation. The house adjoining suffers smoke damage and the occupants of that property emotional distress, and the adjoining walls suffered structural damage.
The Property owner is liable for the electrical set up in the property, NOT the tenant.
As the property owner does not occupy the property a standard policy would be void. If you have the correct Landlords Insurance - your landlord's legal liability would cover all compensations and damages for the tenants and the occupants of the house next door including material loss and repairs to the adjoining house up to £2m. The Buildings Insurance would pay for the re-build of the property let. The Fire service could even pursue prosecution if it was found that you as a landlord had not sufficiently maintained the electrics and failed to provide adequate servicing and safety measures.
From this example you can see that even if you have a relative in the property who would perhaps not sue you, you must consider your liability to others visiting the property and those in the surrounding area (pedestrians walking by), along with nearby property which does not belong to you.
When do I need it?
Your Landlords Insurance should be in place from the moment you own the property, or your tenant walks through the front door, after all they could trip up the front door step.
What's Included?
Everything you need. Landlords Insurance is basically the same as your own home insurance except the added Legal Liability.
How can I reduce the cost?
Carefully choosing the right tenants will help, Insurers will require adequate tenant referencing, your agent should be able to advise you on this. There is no need to over insure yourself, do you really need to include Landlords Contents Insurance when the only contents belonging to you are the carpets? Carpets can be replaced relatively cheaply, and accidental damage to the carpets (staining) is unlikely to be covered anyway.
Take an adequate deposit from your tenant to ensure that if the few contents you have are damaged you can recover the loss by withholding their deposit instead of destroying your no claims bonuses and claiming on your insurance.
If your property is fully furnished you will need some contents insurance – keep the value of these contents minimal and realistic, your tenant will never look after your belongings as well as you would, again on fully furnished properties your tenant should expect to pay a much higher deposit.
Students, Asylum Seekers, Families claiming benefits and Immigrants are the most expensive tenant's to insure. Working people are the most cost effective tenants. Insurance companies consider working people less risky and reduce premiums accordingly.
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Home Shield Insurance Services Ltd is registered in England No. 5867297. Home Shield Insurance Services Ltd is an appointed representative of TenetLime Ltd which is authorised and regulated by the Financial Services Authority. TenetLime Ltd is entered on the FSA register under reference 311266. The guidance contained within this website is subject to the UK regulatory regime and is therefore primarily targeted at consumers based in the UK.
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