Is this your first-time landlord insurance? Do you need help finding a policy without getting stung with high premiums? We can help you get the cover you need for your first-time project.
There is a lot to a landlord insurance policy so we'll take our time to explain what the cover, covers and why it's a good investment for your let property.
Landlord insurance protects your building from things like subsidence and cracking bricks that create damage that costs a lot to repair. This cover is called landlord building insurance.
It covers a lot more than you think too and it's one of the necessary components of a great landlord insurance policy. Next contents insurance for a landlord, you might need this if you rent out a furnished flat or any other type of furnished property.
This cover basically says what it means, it covers your furniture and the cost of repair if the tenant goes nuts and wrecks the place. Landlord contents insurance will cover accidental damage to the contents of your property and it covers theft around your letting business.
It is always a good idea to choose a tenant wisely, you could go with a tenant referencing service if you don't have a tenant right now. A tenant referencing service from a respected landlord insurer will handle background checks and credit checks for the tenant applying for the tenancy. It is handy if you are that serious about finding a great tenant that pay's on time.
Let's go on to rent guarantee insurance, this can be added to your first-time landlord insurance policy and it's designed to take care of tenants when they lose their job and the rent payments stop coming in.
It's hard to get rid of a tenant when they have a signed tenancy agreement. You need to give them a few months to get back on their feet and that costs you money. If you have a buy to let mortgage, you'll still need to pay the bank back so what do you do?
Or if you own the property outright, missing out on rent payments is a no-no. This policy will pay your rent if the tenant stops working and inevitably stops paying your rent.
The policy will pay for eviction proceedings if the situation gets out of hand. Before you think about taking this policy out, please read this article about rent guarantee insurance.
Glad you understand that now, let's move on to landlord emergency callout service. This cover really goes beyond insurance and takes care of your property 365 days a year, night or day.
The policy will cover the following:
If your central heating goes wonky the insurer will assist you and get the problem sorted for you. Central heating systems can cost you plenty when you have no insurance for it.
This also covers your boiler for hot water.
If you need an emergency plumber for blocked drains, sinks or wash hand basins, you are fully covered with emergency assistance insurance. It does cost a bit more each month but it's worth it, especially if you work away and you can't get to the property yourself.
You don't even need to be contacted because you give the tenant the information, as in, contact numbers for the emergency out of hour’s service.
They tell the operator what the problem is and they arrange a callout, simple.
Securing your let property is a must but it can cost you unnecessary costs if you don't have a policy, which covers your door locks and key replacement. If any external doors are kicked in, the insurers will replace the door locks and give the tenant a new set of keys.
This can cause a great deal of stress for the tenant, a blocked toilet is a common thing and it can happen to any household including your rental property.
If this does happen you can get the tenant to make the arrangement and get the toilet flushing again.
If there is a total power loss there is no need to worry if you take an emergency landlord insurance policy out. The insurer will first check the area to see if the power company is working in the area, if the fault lies in your property alone, they'll fix it if they can.
Vermin is a huge problem and it can be avoided by using certain rubbish control and waste food control. Make the tenant aware not to make a mess out the back or where the rubbish bit is situated. If the problems bad and you need help with pest control you can call the emergency number the insurance company gave you and they'll sort it for you.
That's it, there you go, are you ready for a first-time landlord insurance policy? Now you can buy a policy to suit your needs because you know what you want.