Landlord’s buildings and contents insurance is designed specifically for people who let a property out. It is different to normal household insurance as it allows tenants to live in your property whilst still covering your investment.
Also known as buy-to-let insurance, it typically includes buildings insurance to protect against structural damage, and contents cover if you’re renting out a furnished property.
Landlords’ policies are normally available with optional extras that could:
- Cover the cost of repairs for emergencies like burst pipes, gas leaks and pest infestations.
- Provide legal protection for any disputes that may arise with your tenants like the recovery of outstanding rent.
- Compensate you for loss of rent so you can still meet your mortgage repayments if an accident renders your property non-rentable.
If you have a number of buy-to-let properties, you can usually insure them under a single policy, which may be less expensive than individual policies.
It’s not a legal requirement in Northern Ireland, but standard buildings and contents policies may not provide sufficient coverage. This could mean that your insurer could refuse to pay out if you don’t have it.
A landlords’ policy could cover you for the following unexpected costs:
- The cost of repairing damage caused by emergencies like gas leaks, break-ins and burst pipes.
- Rent lost through damage to the property from events like flooding, storm and fire.
- Compensation claims from tenants hurt or injured by an accident your property has caused.
- Loss of rent if an accident leaves your property unoccupied and you’re potentially unable to meet your mortgage repayments.