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Landlord Insurance: Do You Really Need It?

Landlord Insurance: Do You Really Need It?

In this two-minute read,
we look at the ins and outs of landlord insurance and consider how it might
just save you money in the long run.

As a private landlord, you’ve
got to stay on top of repairs, damage, and unexpected costs. So how do you
safeguard your property and income? Do you cross your fingers and hope for the
best? Or have you taken the necessary steps to protect yourself?

is landlord insurance?

First off, there’s no legal
obligation to have landlord insurance – unless your buy-to-let mortgage offer
specifically requires it. But be warned, if you’re relying on a standard home
insurance policy to cover your rental investment, this may not protect you when
the property is occupied by tenants.

Landlord insurance is
designed to cover various aspects of your property/rental agreement. Think of
it as an umbrella policy, protecting you against different risks. It normally includes
buildings and contents protection as standard, and you can choose to add different
types of cover such as:

Rent guarantee protection

Tenant or
accidental damage cover

Boiler or
plumbing issues

Legal expenses

Remember, the more you add to your policy, the
more it costs.

if I’m a leaseholder?

If you own a leasehold flat,
the freeholder covers the cost of buildings insurance. However, this doesn’t
protect you if there are issues within your rental property such as the boiler
breaking down or someone injuring themselves on a loose floorboard (for

If you’re a freeholder,
landlord insurance is advisable. The buildings insurance cover means you don’t
have to worry about big outgoings in case of physical damage to the property, such
as damp, cracks, and so on.

much does it cost?

As with any insurance plan,
the price varies depending on what your policy covers, so it’s difficult to
predict. However, you can expect prices to start from around £200 per year. Use
comparison websites to find the best deal and most suitable cover for your

happens if I don’t take out landlord insurance?

While it’s not the end of the
world and not legally necessary, you may have to pay out a large sum if
something goes wrong with the property or if a tenant or tradesperson makes a
claim against you.

Many landlords choose not to
take out this type of policy, especially those who own a leasehold property. As
a bare minimum, freeholders need landlord buildings insurance to protect
themselves and their tenants.

Talk to us at CWB Property to discuss whether
you need landlord insurance or about how we can help look after your Kent rental.