Entering into the property market as a business can be very lucrative. With the number of people opting to rent rather than buy on the rise, cashing in on this upwards trend makes a lot of sense for savvy entrepreneurs.
However, an important aspect that needs to be paid attention to if you’re a professional landlord is having the right insurance policy in place.
Landlord insurance is specially designed to address the unique elements that come with running this type of venture.
Whether you own one house, a block of flats or a large portfolio of commercial premises, having a bespoke landlord insurance plan is essential.
What should an insurance plan for landlords include?
Renting out properties, whether they are residential, commercial or both, comes with a variety of risks that need to be prepared for.
Expert consultants at The Insurance Octopus recommend the following types of insurance as must-include features for a comprehensive landlords’ insurance policy:
Contents cover – A particularly vital aspect if you rent out fully-furnished flats and houses, contents insurance covers any furniture, fixtures and fittings in the event of theft or damage. It’s also possible to have an ‘old for new’ arrangement that takes the hassle and expense out of replacing worn out items.
Loss of rent – There will always be times when properties are empty due to essential maintenance work and other factors out of your hands. To counteract this huge financial drain, you can get insured to cover the costs of any lost rental income.
Day 1 inflation provision –If you have any repairs or renovation work carried out on commercial properties, this element provides cover against the effects of inflation if a standard contract increases the building sum insured.
Employers’ liability – If you have employees, you’ll need to be protected against potential claims made against you in relation to work-related illnesses and injuries.
Cover for emergency call-outs – If you’re the landlord of share houses, there will regularly be occasions when plumbers, electricians and other contractors need to be called upon at the last minute to solve emergencies posing a risk to the health and safety of your tenants. Opting for specialised cover for emergency call-outs takes the pressure off the huge costs that can be incurred from using these services.