Landlord & Tenant Rental Insurance

Landlords and Tenants Insurance for Let Properties

This is a most important area that should not be overlooked when a Landlord lets out a property or a Tenant rents one..

The risks associated with let properties are significantly different to owner occupied properties therefore you are well advised to use an insurer who specialises in this type of property insurance.

An existing, standard, buildings or contents insurance policy on a property owner occupied may not cover the property or contents when it is let, may restrict the cover and or increase the premium. Years ago insurance companies were not happy about covering let property in the UK, but today you have a choice.

For Landlords - You can obtain a quote on line and arrange cover on line Listed below are types of cover.

• Buildings Insurance
• Contents Insurance
• Emergency Assistance Insurance
• Legal Expenses Insurance
• Rent Guarantee Insurance
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For Tenants - It is essential if you are living in digs, a flat, shared accommodation, student house or a hall of residence. What happens if your personal possessions are stolen or destroyed? Can you afford to replace them? The cost of insurance is extremely small if you compare it to the replacement cost should the unexpected happen.

• Contents Insurance
• Students Contents Insurance
• jml Insurance main website

Insurance Providers

HomeLet Landlord Insurance

Simple Landlord Insurance

Contents Insurance

A high percentage of owner occupied properties in the UK are under-insured for the contents. Generally individuals place a value of what the contents are worth not what it would cost to replace them with new items.

Most specialist insurers will offer the option of a full contents policy or a limited contents policy. Limited Contents Cover. As many UK properties are let unfurnished / part furnished. A limited contents policy would typically give a fixed limit of cover for items such as: Carpets - Curtains - Blinds - Light fixtures and fittings - Kitchen white goods on a new for old basis.

If your property is fully furnished or the limited contents would cost more than £5,000 to replace, you should have a full contents policy. You would normally select the sum you wish to insure for; again this should be adequate to replace all of the contents on a new for old basis.

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Emergency Assistance Insurance

This type of cover will provide assistance for the landlord and the tenant in the event of an emergency at the property such as: Failure of the electricity supply - Failure of the cooking facilities - Lost keys - Plumbing problems - Leaking roofs or guttering - Security of doors and windows. Policies will provide parts and labour cover up to a specified amount and either the landlord or the tenant can call a 24hr 365 day Helpline. (Check out the details on offer from the insurance company)

If you have not taken a full management service from your letting agent or do not live near your property this can be a cost effective solution. Please note that that these policies cover Emergency Assistance only and not a repair service through lack of routine maintenance.

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Legal Expenses Insurance

Even when using the services of a professional letting agent, problems with tenants can occur. In many cases the tenants personal circumstances have changed during the term of the tenancy. Situations like loss of their job, failure of their business, a relationship break-up, accident or illness will effect the tenants ability to pay the rent or their inclination to move out at the end of the tenancy.

All these situations can be resolved but will usually involve a Court hearing and solicitors costs. Legal expenses insurance will usually cover all of your legal costs, solicitors/barristers fees, Court and bailiffs' costs. Most such policies will cost well under £100, which represent less than 45 minutes of a specialist solicitors time on a normal fee paying basis. The "average" legal cost of a possession hearing in 2001 was £785, many cost well over £1,000.

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Rent Guarantee Insurance

These policies are invaluable for many landlords. As a tax deductible premium this will guarantee you receive the rent you are expecting from your property regardless of your tenants personal circumstances, ability or willingness to pay the rent.

If you have a mortgage on the property or have calculated your rental income verses your outgoings this will ensure you do receive your rent. Most such policies will include the legal expenses, as detailed above. You will receive your rent and the legal fees to obtain vacant possession will be covered.

Policies will usually guarantee your rental for a fixed period, typically 6 or 12 months. Some policies will provide additional cover once you have obtained vacant possession until you are able to re-let your policy.

The costs vary from a fixed cost policy or are commonly rated as a percentage of the annual rental figure, typically 3-4%.

Contents Insurance

Tenants very often overlook this, especially those who have never rented before. To a tenant who has just paid the first months rent plus a deposit and administration fees in order to move into the property, insurance is the last thing on their mind. Recent studies have shown that less only 1 -20 tenants have any contents cover at all.

Although a conventional home contents policy will give a basic degree of cover for most insured perils it is not specifically designed for tenants and there can be some major gaps in the cover you need. Often the minimum sum you can insure for will be far in excess of what the tenant needs, typically a minimum of £10,000 - £12,000.

Most specialist tenant policies will provide the tenant with cover starting from £2,500 upwards and will usually cover accidental damage that you may cause to the landlords fixture, fittings, buildings and contents. Should the tenant accidentally damage the carpet with a wine stain or hot iron or a work surface with a hot pan mark, these events will be covered. Usually the tenancy agreement will make the tenant legally liable for such damage, any damage found at the time of the check-out will be deducted from the deposit or security bond. If the tenant has adequate insurance these events will be covered, thereby protecting your deposit.

If a Tenant has a loss through, burglary, fire, flood or other insured peril, which has damaged their contents and have no insurance for their personal possessions they are then left with the cost of replacing the items themselves.

Any items of personal property (clothes, furniture, computers etc) a tenant takes into the property it is their responsibility to insure. Most policies will give an option for basic cover which can usually be extended to cover high risk personal items which are taken outside the home, on holiday or Worldwide i.e. Cameras, sports equipment, clothes, jewellery etc.

In certain high-risk inner city post codes there will usually be a requirement to have minimum-security locks on doors and accessible windows. Do also take into account the conditions of insurance policies, regarding keeping windows and doors secured when the Tenant is not in the property

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Students Contents Insurance

Think about the cost of replacing a CD player (the CDs as well), your computer, clothes and other personal belongings, even you bike! You really don't want to have to add these costs to your student loan.

Did you know that the average cost of a student burglary is £900? The most commonly stolen items are personal laptops / computers and other electrical goods.

You can get cover for loss or damage to personal possessions in your home and anywhere in the world, all for the equivalent price of a pint of beer or a glass of wine per week!

Students Car Insurance Find out more Here

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