What Does Landlord Contents Insurance Cover?
Landlords find that having comprehensive insurance can protect them against financial loss when there is an accident, meaning that the insurer is responsible for paying these costs instead. Generally, two types of insurance are useful: landlord building insurance and landlord contents insurance.
Whilst building insurance may seem like the transparent cover, pairing this with contents insurance creates wider-ranging coverage and truly allows landlords to be safeguarded against the majority of unpredictable events that could occur. With that being said, what does landlord contents insurance cover? If you would like to read more information or learn more about the pricing of business landlord insurance, you can do so here .
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What Does Landlord Contents Insurance Cover?
Furniture
Probably the essential coverage that landlord contents insurance provides is for the furniture in the property. Furniture contributes to the practicality of the space. It lets tenants know that they do not have to carry their sofas to the building, but it also adds to the homeliness feel and makes the place look brighter and comfier. Usually, the covered events in the insurance policy are damage from floods, fires, and earthquakes. If the furniture were destroyed from any of these incidents, it would be replaced by the insurance company. Furniture typically includes sofas, tables, chairs, beds, wardrobes and desks.
2. Appliances
Landlords add appliances for their buildings as it is attractive for prospective tenants. Furthermore, it can give a landlord peace of mind knowing that good quality appliances are being used inside the building and are less likely to cause leakages, stains or electrical faults.
Kitchen appliances included in this policy usually include dishwashers, microwaves, sinks, ovens and refrigerators, as well as other household necessities like washing machines and tumble driers. Similarly to furniture, if any of these items were destroyed in a fire or flood, the insurer would cover this, allowing for their swift replacement.
3. Fittings
Fitting is a term used to describe any items in the property which are not directly attached but added for further practicality and comfort. Examples include curtains, carpets, shelves, mirrors and lamps. A landlord may add these in their rental to freshen the space up and lighten the atmosphere, making it seem more liveable and allowing potential future tenants to see themselves in the rooms, making them appear more appealing.
If these fittings were to suffer from brain damage, water leakages, or even fires (which is more likely compared to furniture and appliances), they would be insured. So the landlord would be reimbursed for replacing or repairing them.
4. Garden Equipment
Generally, a garden, whether it is front or back, is considered an extension of the property, so most insurance companies would offer coverage to protect it. This includes fences, lawnmowers, sheds and other decorative equipment. However, any garden appliances should be safely in the back and locked otherwise. Insurers are not assured that you are protecting your contents, so the security should be adequate. Only the most expensive tools should be insured under the policy to decrease your premium. For example, insuring a backlight worth £20 is not worthwhile.
What is Not Covered By Landlord Contents Insurance?
Although it is critical to know what landlord contents insurance covers, it is just as important to be aware of what it doesn’t. This is because assuming an item is insured when it isn’t can create a false sense of security and cost you money to repair as the insurer will not cover it.
A common misconception is that tenants’ contents and personal possessions are included in the policy when this is untrue. Landlord contents insurance only protects the landlord’s belongings, and the tenant should take out additional insurance if they wish to insure their furniture and fittings.
Similarly, wear and tear of the furniture, appliances or fittings in the building is not covered. Only damage caused by insured events like fires, floods, explosions, earthquakes and theft is included in most policies, and equipment is broken because it is old. The landlord is responsible for replacing it.
For example, if two of the four hobs no longer switch on, and the oven heats up unevenly, this is because the quality has deteriorated over the years due to lots of usages, and the parts are no longer new. As a result, the landlord may need to hire an electrician to repair them or even buy a brand-new oven because insurance companies do not offer this type of coverage to landlords.
Landlord Contents Insurance – To Conclude
In conclusion, landlord contents insurance covers the belongings inside the building belonging to the landlord. This includes bedroom and living room furniture, kitchen and bathroom appliances, fittings and garden equipment.
Find out more about the importance of insurance here .
Other useful links about Business Insurance:
Is Professional Indemnity Insurance a Legal Requirement?
How Much Product Liability Insurance Do I Need?
Is Employers’ Liability Insurance a Legal Requirement?
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