Insurance is vital for both landlords and tenants.
Like any business, property investing is about reducing risk. Of course, landlords need to protect their investment with rental property insurance, insuring for any loss or damage.
Special landlord’s risk cover is alternative insurance to protect you against tenant-related risks such as intentional damage to a property caused by the tenant or loss of rental income.
Check out Real Landlord Insurance for landlord specialist risk cover
Tenants should also have content insurance to protect their belongings and personal liability.
Landlords must ensure their insurance provider knows the cover is for a rental property rather than owner-occupied.
Liability For Damage
New legislation took effect on the 27th of August 2019 that affects tenants’ liability for damage.
🟠 When a tenant or a guest causes careless damage to a rental property, they will be liable for the cost of that damage, up to four weeks’ rent or the landlord’s insurance excess, whatever is lower.
🟠 However, if tenants cause intentional damage and when proving this at a tenancy tribunal hearing, the adjudicator may award the total cost to fix or replace the damage, whatever the cost.
🟠 All tenants should be aware, and with new tenancies, we will advise that they consider getting insurance cover if they are not already insured. And recommend they look at a content cover that includes personal liability.
🟠 On all new tenancy agreements, landlords must declare what type of insurance cover they have, whether house rental or landlords full risk cover, including house and contents excesses.
➡ Apart from ensuring you’ve got the necessary insurance cover, competent Property Management is the best way to reduce risk, whether self-managing your rental property or using a property management company.
➡ Securing a long-term tenant who pays rent on time and looks after your property is critical for an ongoing trouble-free rental.
➡ When selecting a tenant, it is essential to reduce your risk as much as possible by having a comprehensive selection process that allows you to choose the best tenant for your property on merit.
➡ I’ve learnt choosing a suitable tenant is a skill only mastered with training and experience.
Feel free to reach out, making life easier for landlords