• Landlord Insurance, by Mike Donnelly

    Posted on 20 July, 2016

    I recently had the experience of offering a residential property for rent and, for an insurance broker, it was an instructive experience. Chatting to my letting agent, I learned a great deal about the hazards of rental property ownership, and was surprised to discover that many landlords using standard insurance packages simply don’t attempt to cover risks that I would have thought were eminently insurable.

    It was clear to me that a Landlord Insurance Package would be a Very Good Thing! So we set about creating one, to serve as an extension of a standard residential insurance policy, with options targeted at the concerns of owners of investment rental properties. Here are some of the gaps plugged by our package:

    • Malicious damage by the tenant.
    • Theft by the tenant of fixtures, fittings or other property on the rented premises. These sorts of things do happen, but standard cover tends to treat losses occasioned by the occupant of the property as “self-inflicted”.
    • Rent default. Often this happens when a tenant gets injured or falls sick. Even if the tenant is eventually evicted, the defaulted rent is often unrecoverable. And in any case, who wants to throw out a tenant who in all other respects may be ideal? There’s an inevitable cost in replacing a defaulting tenant – far better to build in to the rent a provision for insurance.
    • Loss or damage to contents provided by you for your tenant’s use. These include furniture, furnishings, curtains and blinds as well as fixtures and fittings.

    One policy being aggressively marketed direct to landlords purports to cover these gaps left by the standard insurance products. Technically, that’s true, but that’s all it covers! Many policyholders have been left unaware that they still need to buy base cover for their property.

    Our landlord insurance provides all the standard and mandatory insurance protection, with all the optional extras the investment property owner needs to have peace of mind.

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