Let property insurance – frequently asked questions

April 11, 2012

Landlords Insurance

Here are responses to some commonly heard questions on the subject of let property insurance.

We will gladly expand on any of them for you, if you need further assistance.

Is let property insurance always obligatory?

It may depend a little on what you consider obligatory to mean.

If you are obtaining rental income from property, even if it is property that you occupy the bulk of yourself, then typically you will require landlords buildings insurance (and possibly contents cover) not owner-occupier policies.

If you do not have the appropriate type of policy in place, your property may be effectively without cover.

Although the law may not require landlords insurance as such, if you have a buy to let mortgage then one of the conditions may be that you maintain full buildings cover at all times.

By definition, that may mean landlords insurance.

Do I need buildings and contents cover?

Not necessarily.

A typical landlords buildings policy may provide cover for fittings and fixtures as well as the structure of the property.  If you are letting your property unfurnished, then you may decide that you do not need contents cover at all.

It might be sensible in such cases, to look carefully at the policy’s definition of fittings and fixtures to make sure that they are in accordance with reality and your views of the same things.

Do I need employers’ liability insurance?

This is a complex area and one in which you may need to seek specialist advice.

Some landlords cover policies may include employer’s liability protection of up to £10m – other policies may not include it at all.

As a general principle, the law may, in typical cases, require you to have employer’s liability cover if you have employees working on your behalf.

Note that in some situations, the law may even define friends or family members working for you on a voluntary basis, as being de facto employees and therefore entitled to the protection of employer’s liability cover.

Can I get a discount for multiple properties?

Some insurance providers may offer what they call property portfolio insurance.  This typically allows landlords to cover a number of properties through a single point of insurance.

The cost and administrative savings may be significant and make it worthwhile looking for the best property portfolio insurance around – though remember that what might prove to be best for someone might prove to be less so for another, so do your research carefully.

Of course, that piece of advice applies equally to any form of let property insurance.

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