Landlords Contents Insurance: About

2007-03-08 10:33:40

( Insurance )



Most landlords often overlook the risks. Your inability to prepare and protect yourself from such risks as a landlord can be hazardous to your financial health especially if you have a mortgage lodged against the said property. Landlords often do not have a full picture of all the risks they are exposed to. As a result, they are unaware of the type of insurance coverage that they need and they fail to understand that standard homeowners insurance is very different from buy-to-let property insurance coverage. If you are a landlord, it is prudent to seek the advice of an insurance broker that you trust to get the right coverage for your property.

There are several types of landlords insurance: landlords buildings insurance, landlords contents insurance, legal expenses insurance and rent guarantee insurance among others. Landlords buildings insurance protects your property from fire, floods, malicious damage and burst pipes. It is a good idea to go comparison shopping as coverage for this type of insurance may vary from carrier to carrier.

There are two types of landlords contents insurance. A limited contents policy is applicable to properties that are unfurnished or semi-furnished. Insurance companies cover items such as carpets, light fixtures and curtains up to a certain amount. These types of policies also often provide landlords liability. Landlords liability is important as this will protect you from personal injury claims.

Another type of landlords contents insurance is the full contents policy. This policy is suitable for fully-furnished properties that would cost more than a specified amount to replace. When you opt for a full contents policy, make sure you put a value on the contents based on the cost to replace them not the value you think each item is worth.

Rent guarantee insurance guarantees that you will receive rent regardless if your tenants are unable to pay due to personal circumstances. A rent guarantee policy is applicable to landlords who have a borrowed against the said property and who rely on the rent to pay the monthly amortization dues.


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