As professional property managers, KPM Property Management understands the importance of protecting your investment properties. That’s why we strongly recommend our clients to have comprehensive landlord insurance in place. But what exactly is landlord insurance, and why do you need it?
Landlord Insurance Explained
Landlord insurance is similar to homeowner’s insurance but designed specifically for rental properties. It typically consists of three main components: buildings insurance, contents insurance, and liability insurance. Additionally, you can opt for various add-ons depending on your property’s specific needs. Landlord insurance is typically purchased on a property-by-property basis, although portfolio insurance is available for landlords with four or more rental properties.
Types of Landlord Insurance
Building Insurance
This coverage protects your property’s structure and covers the cost of rebuilding if it’s permanently damaged. Most lenders require buildings insurance as a condition for buy-to-let mortgages. Common risks covered include theft, vandalism, storms, earthquakes, subsidence, burst pipes, fire, and water damage.
Contents Insurance
This insurance covers the cost of repairing or replacing fixtures, fittings, carpets, furniture, and electrical appliances provided by you. The level of coverage needed depends on whether the property is furnished or unfurnished. It’s essential to note that contents insurance only covers your belongings, not your tenants’ personal items.
Liability Insurance
Liability insurance, also known as public liability protection, safeguards you financially if a tenant or visitor is injured on your property. It covers legal fees and compensation costs if you’re found legally responsible for an accident.
Additional Coverage Options
Rent Guarantee Insurance
This insurance covers lost rental income if your tenant falls behind on rent payments or during void periods when the property is vacant. It may also include legal fees for eviction proceedings.
Home Emergency Cover
This protection ensures you have access to emergency services around the clock for critical issues such as plumbing, heating, roofing, electrical problems, infestations, and lost keys.
At KPM Property Management, we prioritise the security of your investment properties. Our team can guide you through the process of obtaining the right landlord insurance coverage to provide you with peace of mind. Contact us today to learn more about protecting your rental assets.
