Generally, if you rent out a property you should have adequate landlords insurance North Wales. Although landlord insurance covers a lot of things that regular home insurance would, it wouldn’t cover you if you weren’t living in the property yourself. There are also additional risks when renting a property so it’s good to be on the safe side.
A lot of mortgage providers will insist that you take out the appropriate landlords insurance North Wales too, so be careful not to get caught out!
What is landlord insurance?
Landlord insurance is a level of insurance that is similar to home insurance in that it covers the building against fire and floods. It is important that you don’t rely solely on home insurance as many home insurance providers will only cover the property if it was yourself staying there and not a tenant.
Landlord insurance can also include contents cover, protection against rehousing costs if something was to happen to the property, and loss of rental income.
Why do I need landlord insurance?
If something was to happen to the property or your tenant as a result of a poorly managed building, then you could be facing some very serious fines and even be sent to court. That all costs money, which can be significant amounts, but by having landlord insurance you will be covering yourself against any costs that may arise.
It is good to remember that landlord insurance will also cover loss of income and rehousing costs if there are major repairs needed on your property – something that is out of your control.
Do I need landlord insurance if renting out to family?
The short answer is yes. You may feel like you don’t need a policy that will cover legal claims and loss of income, however, there is a lot more to landlord insurance than that. Landlord insurance can protect you against replacing things and rebuilding works if your property becomes a victim of a natural disaster – something that is occurring a lot more often. Regardless of who you are renting out to, this is something you will need in place to save you thousands of pounds if it was to ever happen.
What is landlord building insurance?
It is against the law if you do not have this type of insurance in place. Your landlord building policy insures the structure of the building plus built-in items such as bathrooms, kitchens and even pipework. You need to make sure that your property is insured for the whole rebuilding cost just in case it comes to that. Building insurance covers:
- Natural disasters – Fire, lightning, explosion and earthquakes
- Violence – Riots, civil disturbances and malicious acts
- Storms and floods
· Accidental damage