Contents Insurance For Landlords
Contents cover for landlords refers to an insurance coverage that protects the contents in a property that is ‘buy to let’ or simply given on rent by the property owner. Although it is not a mandatory requirement to have contents insurance in UK, getting such insurance would offer protection of the rental property contents and thereby keep the landlord free of tension. As a landlord, in case you do not take this insurance cover and something untoward happens to your property and the contents, you would have to bear the expenses from your pocket – the amount may go up to a few thousand pounds.
Landlords Contents Insurance: Types of Cover
Landlords do not generally require full contents cover unlike the owner occupied properties. Contents cover can be anything around £ 35,000 and more for an owner occupied property. However, the figure would be much lower for a tenanted property since the tenant would be responsible for a major portion of the contents. It is especially so for properties, which are let unfurnished or semi-furnished.
With every policy, you must ensure that your entire belongings or contents are fully insured against tenants’ malicious damage, accidental damage and even offers protection when the place is unoccupied.
A few of the things, which you should ask for cover, are:
- Fittings and fixtures including chairs, settees, beds, tables, cabinets in your kitchen, dining room, lounge or in the bedrooms.
- Laminate floors and carpets suffer wear and tear very easily; ensure the policy covers these in case of accidental damage.
Limited Contents Cover: This would offer protection to landlords for damage or for loss of items supplied like furniture, carpets, ornaments, pictures, blinds and curtains, electrical equipment like televisions, washers, fridges, dryers and such on ‘new for old’ basis. Such cover typically would be around £ 10,000 and may go up to £ 15,000.
Full Contents Cover: This kind of cover is useful for a fully furnished property on rent. As a property owner, you should have a complete contents inventory, photographic evidence as well as a schedule of value of each possession. The insured sum must be enough to take care of the total contents replacement value.
Some insurers hesitate to offer contents cover for landlords where tenants carry greater risks or in case of some special situations. House in Multiple Occupation or properties converted for HMO, Housing Benefit tenants and students are such examples. You should do a thorough homework prior to purchasing the contents insurance policy. Do research into different policies, prices, and coverage before committing to a specific insurance policy provider.