If you’re a landlord, then there’s probably not much this article can tell you about the stresses, strains and problems that you face on a daily basis. In the context of those concerns, looking for cheap landlord insurance is possibly way down on your priority list of things to think about – but that may be a mistake.

Risks – not a daily problem but potentially life-changing

You may think that dealing with the faulty toilets, leaking roofs and difficult tenants is where the urgencies are and perhaps that’s understandable. Yet lurking behind the reality of daily life are those major risks that are invisible – right up until they go wrong and involve you in major costs.

Those risks are real and ever-present including perhaps:

• claims for damages from members of the public injured while on or passing-by your property;
• claims from tenants that suffer injuries for the same reason;
• the classic potential problems of natural disasters affecting your property such as fire and flood;
• theft from your property while it’s empty during renovation or redecoration.

The list could continue but the point is clear. Your property is at risk and if any of the above things happen, you may be facing very severe costs. If you don’t have appropriate cover (whether expensive or cheap landlord insurance) in place to help you, it’ll be your bank account that has to cope.

Your property is your business

Unlike a traditional owner-occupier, your property is also your income generator. If it’s out of action for any length of time, your income declines to zero. That’s why having buy to let insurance in place to ensure a fast resolution to problems may be essential.

Your property is also different to an owner-occupied one in another important respect – it is subject to risks that do not apply to ‘ordinary property’. The fact that you have tenants in your home introduces a number of risks (such as claims for personal injury) that typically would not apply if you were an owner-occupier.

What this means is that specialised let property insurance is required. And the good news is that cheap landlord insurance may often be available that gives you the cover you need, without compromising on the protection.

It is worth noting that a traditional home buildings and contents insurance policy will not be valid for situations where your property is being rented out in full or part. So although it may be a little more expensive than standard property cover, finding cheap landlord insurance may be essential for your protection.

It’s also worth noting that taking the view that the insurance company would never know is a myth. Insurance companies do have ways of establishing whether a property is rented or owner-occupied so ensuring that you have the appropriate insurance in place may be highly advisable.

Landlord insurance

There are specialist buy to let insurance policies available that offer protection for landlords. This can apply whether your property is fully rented, part rented or consisting of a flat in a larger block. Empty property insurance is also typically available if you are without tenants for an extended period of time (usually once the property has stood empty for 30 days it is classed as unoccupied) or it is vacant while it undergoes refurbishment.

There will typically be a cheap landlord insurance policy to meet your needs and advice that can go with it. Making the effort to find out more might be a good idea.

Tags: Cheap landlord insurance

This entry was posted on Monday, February 1st, 2010 at 5:28 pm and is filed under Low cost landlord insurance. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.