Landlord Insurance

Property Owner's / Landlord's Insurance – Guide

Property Owners Insurance (also referred to as Landlord's Insurance or Let Property Insurance) is a cover specifically designed for owners of property who let it out to tenants. These could either be commercial tenants (eg. - shops, offices, warehouses, industrial units etc) or residential tenants.

Some landlords have their let properties insured on a Home Owners policy, often for historical or convenience reasons (ie. - they used to live in it, or it is adjoining / nearby their home), but this is often not the best solution for the following reasons:

  • The premium is probably higher than a specialised Property Owners policy
  • There are probably many householders’ extensions of cover on the policy that are useless to a landlord
  • Specific extensions and covers for landlords may not feature
  • Managing a multi-property portfolio can be unnecessarily complicated
  • At worst, the whole cover may be at risk of being voidable by the insurer if they are not fully aware of the tenanted circumstances of the property

A specialised Property Owners policy addresses the above issues and should include the following covers and extensions:

  • Buildings Cover against All Risks (including Fire, Subsidence, Theft, Storm, Flood etc)
  • Automatic uplift on the Sums Insured (to allow for inflation through the policy and claim period - known as "Day One Uplift")
  • Property Owners Liability cover (ideally at least £5,000,000 limit)
  • Eviction of Squatters and other Legal Costs protection
  • Loss of Rent cover
  • Trace and Access
  • Replacement of Locks
  • Failure of Third Party Insurances
  • Unauthorised use of Electricity, Gas or Water
  • Temporary removal of any Landlords Fixtures, Fittings or Property
  • Additional costs of upgrading sprinkler installations if required by insurers following a loss
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