The lowdown on landlords insurance and why it is important to have
Posted on 19. Dec, 2011 by admin in General, Property
There are a number of different types of insurance policy that come under the heading of ‘property insurance’ and one of these is landlords insurance. This is a type of policy designed to offer financial protection to landlords of properties that are rented out for use as homes or commercial premises. It offers protection against the various problems that can affect these properties, which includes damage caused by bouts of extreme weather – such as storms and flood-level rainfall; damage caused by internal problems – such as fires and burst water pipes; and damage caused by tenants of the properties.
Given the number of things which can potentially lead to a property being damaged it is essential for anyone owning a property which they rent out – whether it is for business purposes or as a home – to secure some form of landlords insurance. The fact is that, for many buy-to-let property owners, these properties are their major source of income and therefore they need to protect them. Should a property sustain serious damage as a result of any of the causes referred to in the opening paragraph, it can be rendered uninhabitable for a lengthy period of time. This means that the landlord of the property would not be able to secure rent from a tenant during this period and – given that for many buy-to-let landlords – this rental money is their major source of income, this can prove to be financially catastrophic.
Another reason why it is vitally important for all such property owners to have landlords insurance is that, without it, you would not only suffer the loss of income due to the property being unusable while it is being repaired, you would also be liable financially or all of the costs of making the necessary repairs. Fortunately landlords insurance can be secured at very competitive rates, from reputable providers, such as Towergate Insurance, meaning there is no need for any landlord to be without it.