Landlord Insurance for Tenant Damage

Why would I need landlord insurance for tenant damage?

As a landlord, you are responsible for the structure of the building, and the furnishings and fittings. With a renovated or refurbished buy-to-let property, you may be keen to cover your own possessions on the property and previous investment.

It is important to note that, with landlord insurance, only the landlord’s contents, and the building is covered for tenant damage. Landlord insurance does not cover loss or damage to a tenant’s contents or belongings.

While not mandatory, it is good practice for landlords to insure personal belongings properly, and, perhaps most importantly, ensure the structural integrity of the flat against any risk. Additionally, depending on your mortgage holder, you may be required to have had some form of building insurance applied.

What is covered by landlord tenant insurance?

When comparing landlord insurance, with a focus on tenant damage policies, you may consider a policy covering either; buildings insurance or contents insurance, or both – whatever is best suited to your circumstances. These typically entail:

Buildings insurance – Buildings cover will protect your property’s physical structure, such as the walls and roof. It may also provide coverage for external structures that are part of the property, such as an unattached garage. Insurance for buildings will also cover any repairs after structural damage caused by a number of things – such as natural weather damage, or flooding, and water damage from burst pipes or vandalism.

Contents insurance – If you let property as fully or partially furnished, you may wish to find a policy protecting your contents from tenant damage. Contents insurance will generally cover furniture, furnishings and white goods against damage.

What are the relevant types of landlord insurance policies?

For contents insurance, you may choose between indemnity or ‘new for old’ policies when looking at different policies.

If you opt for indemnity cover and make a claim, the insurer will factor in any depreciation of value the item might have undergone since the time you purchased it and pay you an amount based on this.

A new for old policy will provide you with a brand new version of the same item. As a result, new for old cover may be more expensive.

With buildings insurance, different policies may include or exclude certain additional add-on coverage; whether these coverage policies are suited to you will be up to your determination. However, additional coverage regarding buildings insurance may protect against tenant damage further.

What will landlord insurance cost?

Insurance of this kind requires several considerations to be taken by the insurer to arrive at the necessary cost.

There are numerous risks involved for an insurer, the first and foremost being the likelihood of a claim – yet, this is not the only factor as many details are taken into account to arrive at this judgment.

The resulting charge will be reflective of these considerations, meaning only an average cost in the UK on landlord insurance can be given, and no exact costs as it will be entirely dependent on your property and circumstances.

However, here are a few factors that have a significant impact on a landlord’s insurance quote for tenant damage:

• Type of occupancy – this refers to whether your property is for commercial use only or a residential property.
• The building and its location
• The tenants – the employment status of your tenants can be considered, or if they are students. As well as there being multiple occupants on your property.
• Additional Extras – there are several add-on coverage policies when it comes to landlord insurance that may be applicable when it comes to possible tenant damage

What if I need to make a claim?

If you need to make a claim regarding damage caused by tenants, and it cannot be resolved through deductions to the tenant’s deposit, you should contact your insurer as soon as possible.

Getting ahead of the issue quickly will allow for a quicker solution; it is possible that claims can be rejected if too much time passes between the occurrence and the claim.

Once filed, you must submit evidence of tenant damage and relevant details. This will include; documentation, photos, your estimation of overall repair costs etc.

It is important to remember that certain policies from some insurers do not include cover for malicious damage by tenants as standard.

Be aware that it can take some time to investigate a claim; sometimes, this will depend on your landlord’s insurance policy.

Before you take out a landlord insurance policy

When looking for landlord insurance for tenant damage, you should shop around thoroughly and check exactly what each policy covers and if you need to purchase any optional extras.

Through a diligent market comparison, you will find the plan that most comprehensively suits your needs.

We can help; view our comparison tables, and get a quick online quote for landlord insurance policies.