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.  Landlords Insurance is similar to  your own Home Insurance policy, but with some very important differences to the legal protection.

You need it because if your tenant or a one of their visitors to the property were to suffer any injury or loss as a result of the property - they may pursue you for damages.

Another reason would be if the property or any person suffers damage due to an electrical fault for example, you could in extreme circumstances find yourself being criminally prosecuted, and even though you do not live in the property, you own it – that makes you completely responsible and 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 and maintenance in the property, NOT the tenant.

 

As the property owner does not occupy the property a standard Home Insurance policy would be void. If you have the correct Landlords Insurance Policy in place- 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 you own and let.

The Fire service could even pursue prosecution if it was found that you, the 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), adjoining or near by property which does not belong to you

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.

Everything you need. Landlords Insurance is similar to your own Home Insurance except the added Legal Liability.

 

All  ‘Major Perils’ are included as standard – for example

• Fire
• Flood and Escape of Water
• Earthquakes and Lightening Strikes
• Storm Damage

Plus many more…..

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.

Ensure that you are insuring your building for the correct amount.  The Rebuild value is not the market value.

 
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 by 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.