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Do I need landlord insurance? Will I be able to find tenants? How much do I charge?… There are many things to consider when you buy a rental property, and it can often be very daunting.

To start, let’s go back to basics. If you’re new to the world of being a landlord, then first things first, you’ll probably want to secure your landlords insurance.

However, landlords are often left with questions about their cover, and we’re here to answer your questions…


1. What is landlord insurance?

Standard or specialist landlord insurance is a type of home insurance, which protects rental properties. It covers you for property damage against certain risks with the knowledge that it is not a domestic property, but a property let out to individuals as a source of income.

If you’re not living in your property, and you’re renting it out to tenants, then you’ll be wanting a specialist landlord insurance policy.

It provides you cover whether you have tenants currently living in your property or not. There are also additional benefits which you can add to your policy to ensure that you are covered for particular events that concern you.


2. Why do I need landlord insurance?

If you’re renting out your property, it’s more than likely that you mortgage lender will require you to have insurance for your property. Most lenders will want you to have basic cover as standard, but it’s usually up to you if you want any added benefits.

Being a landlord is essentially a business, where tenants are paying you a price to live in your house. Therefore, it’s very different than if you were just living in your own home. There are different things which can go wrong, which is why there is specific insurance to cover this.


3. How much is landlord insurance?

The cost of your insurance policy will differ on many factors, such as where your property is situated, the size of the property, and more. When you  , they’ll run you through this to make sure you get the cover you need.

It also depends on what you would like your cover to include as there’s optional extras you can add onto your policy.


4. What does landlord insurance cover?

As standard, we can cover:

  • Residential landlords with properties that are occupied, unoccupied or undergoing works
  • Landlord’s contents and Tenants’ contents
  • Non-standard and prestige homes
  • Property developers
  • Occupied commercial lettings
  • Unoccupied building and flat blocks
  • Self-build properties during construction

These are all covered within your policy, so if you do run into any trouble, you can have peace of mind knowing that you’re able to get back on your feet.


5. What additions can I add to my landlord insurance cover?

You can create a comprehensive package for your cover by adding different features which you may need. These include:

  • Landlord Legal Expenses (up to £100,000 per claim with an annual limit of £1,000,000)
  • Landlord’s Rent Guarantee
  • Landlord’s Home Emergency Cover (provides you with up to £600 per call out for a variety of different scenarios)
  • Excess Waiver Cover

You don’t have to add on these additional coverages, but it might be a good idea to sit down and weigh out the options.

For example, if your tenants don’t pay their rent, can you afford to cover it whilst you rectify the situation.


6. Who pays building insurance, landlord or tenant?

As the landlord, because you own the property, it’s your responsibility to take out a home insurance policy if you want or need one.

This is because it covers you for situations such as the building being unoccupied, which would be your responsibility.

It also covers landlord’s contents which may be items such as white goods (if you’ve provided them) so this would be your responsibility, not the tenants.


7. What if I have an unoccupied property?

Specialist landlord insurance covers you if your property is unoccupied, so that’s one less thing to worry about if you’ve not got anyone living there for the time being.

This also means that if you need to do any work to your property once your tenants move out, you can get it done and dusted before anyone moves in.


9. Am I covered if my tenants miss a payment?

You can add ‘Landlord’s Rent Guarantee’ onto your policy which will help cover this for you. It’s designed to help protect you as a landlord.

It means that if you tenants miss a rent payment, you won’t fall behind on your mortgage repayments. This added layer of protection is great, especially with many people’s mortgage rates being higher than before.

Rent Guarantee will pay you the rent you would have earned should the tenant not pay you up to £2,500 a month. Rent Recovery covers the legal cost of taking a tenant through the court system for unpaid rent.


9. What levels of cover do you offer?

  • ‘Standard’ includes
    • Eviction & Repossession
    • Property Damage
    • Nuisance
    • Property Disputes
    • Contract Health and Safety
    • Tax Investigations
  • ‘Silver’ includes
    • Everything in ‘Standard’ level cover
    • Rent Guarantee (subject to £250 excess)
    • Rent Recovery (up to the value of £2,500 per month & subject to £500 excess)
  • ‘Gold’ includes
    • Everything in our ‘Silver’ level cover but with no excess
  • ‘Platinum’ includes
    • Everything in ‘Gold’ level cover
    • Vacant possession cover


10. Where can I get landlord insurance?

Here at Carbon, we offer Specialist Landlord Insurance with you in mind. We’ll find you the best policy which covers everything you need. We know that being a landlord can be very overwhelming, so let us take some of the stress out of it!

We also offer a 5% discount to our Landlord Clients if they choose us for their own Home Insurance Policy. Want a landlord insurance quote? Contact us today and we’ll be happy to help!

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