What is Landlord Contents Insurance?
Do you own a property that you rent out to tenants? If so, it’s essential to have landlord contents insurance. This type of insurance will protect your belongings if damaged or stolen by your tenants. It’s essential to have coverage for the building and the contents inside. This blog post will discuss why landlord contents insurance is so important and how to get coverage.
If you would like to read more information or learn more about the pricing of business landlord insurance, you can do so here.
What Is Landlord Contents Insurance?
Landlord contents insurance is a type of insurance that provides coverage for the belongings inside a property that is being rented out. This includes both the building and the contents inside. The purpose of this insurance is to protect your belongings if they are damaged or stolen by your tenants.
Why Is Landlord Contents Insurance Important?
Landlord contents insurance is vital because it provides coverage for the items inside your Rental Property. Landlord contents insurance will cover damages to personal belongings such as furniture, appliances, and clothing if damaged or stolen by your tenants.
Is It A Legal Requirement In The UK To Have Landlord Contents Insurance?
No, it is not a legal requirement in the UK to have landlord contents insurance. This type of insurance will cover your belongings if they are damaged or stolen by your tenants. It also provides coverage for any items stolen or damaged for reasons other than your tenants, like natural disasters.
How to Get Coverage
To get coverage for your landlord contents insurance, you must purchase a policy from an insurance provider. When shopping for a policy, it’s essential to compare the different providers and find the best coverage at the best price. You should also make sure that the policy covers both the building and the contents inside.
What Does Landlord Contents Insurance Cover?
When you are looking for an insurance provider for landlord content insurance, it is essential to discuss the coverage information in detail. The coverage details may vary for different service providers; however, generally, the following things are covered under landlord contents insurance.
- Light fixtures
- Kitchen appliances
- Gardens (and the garden contents)
- Sheds and outhouses
- Communal area
If you don’t find the things you need to be covered, you can communicate that to the insurance provider. Most insurance providers will put that as an add on to their original property with a bit of increase in the premium charges.
Below is a useful table about popular insurance companies in the UK based on what they offer and their Trustpilot rating:
Will My Landlord Contents Insurance Also Include My tenant’s property?
No, your landlord contents insurance will not include the tenant’s property. If you want to protect the tenants’ property, that can be done by taking a house/landlord building insurance in which all the things are covered. However, if the tenants need any of their specific content insured, then that insurance’s responsibility will fall solely on the tenant. The tenants can get the relevant contents insurance on their own. The tenants can ensure their assets under a renter’s insurance policy.
Can Landlord Contents Insurance Be Taken For An Unfurnished Property?
Yes, landlord contents insurance can be taken for an unfurnished property. The coverage is given to the building and some of the common areas like the garden, which are also covered under landlord content insurance in case they get damaged. Some properties have carpet flooring and curtains in them, even if the rest of the property is unfurnished. So the landlord content insurance can protect the carpets and curtains. If there are any specific items in the property that need to be insured, then the tenants will have to take care of that insurance on their own.
What Is Insured Under Landlord Contents Insurance
As previously mentioned, this will vary from provider to provider, so it is essential to discuss the policy in detail with your insurance provider. Some of the standard coverage areas and scenarios are discussed below:
Tenants or their visitors can cause accidental damage. In cases like this, the contents insurance will cover any damages from accidents. Examples could include a broken window due to a ball being kicked into it and breaking the glass or an accidental spill on carpeting causing staining issues that need repair work done to fix them up again.
If your items are stolen, contents insurance can cover the cost of replacing them. You will need to provide proof that your property was stolen, so it’s essential to keep detailed records at all times, such as receipts and invoices for any valuables or high-value items you have on display within the property.
If a tenant or their visitor deliberately damages your property, the contents insurance will usually cover the costs of repairing or replacing what’s been damaged. This could include graffiti being spray-painted on walls, windows being smashed, or furniture/appliances being broken.
If your property is damaged due to a storm, contents insurance can cover the cost of repair work or replacement items. Examples might include damage caused by strong winds blowing down fences/trees onto buildings nearby, flooding in basements due to severe rainstorms causing water damage inside the home etc.
Flooding is one of the most common causes of property damage. If your home is damaged by flooding, this insurance can cover repair work or replacement items needed after such an event occurs.
If you have a tenant who vandalises the inside of your home, contents insurance will help cover any costs associated with repairing damages caused by that individual. For example, if they break doors and windows, spray paint walls or destroy furniture/appliances, then this policy may help pay for replacements needed due to their actions.
New For Old:
The policy may include new for old cover. This means that if an item is damaged by fire or flood and cannot be repaired, the insurer will pay out enough money to replace it with a brand new version of what was lost rather than just giving you back what they think it’s worth now.
Locks and Keys:
If you need to change the locks or get a new set of keys cut after a tenant has moved out, some contents insurance policies will help to cover those costs.
Carpets and Curtains:
Even if your property is unfurnished, some carpets or curtains may be in place that you want to protect from damage. Contents insurance can protect these items as well.
In some cases, your home may become uninhabitable due to damage from a storm or flood. In these situations, contents insurance can help cover the cost of alternative accommodation while your property is being repaired.
Broken Windows and Glass Doors:
Glass doors and windows are expensive to replace, so you must protect them from damage by getting insurance with this item covered under the policy. You don’t want to be left out of pocket if something happens that causes them to break. If your windows are smashed and need to be repaired or replaced, contents insurance may help cover the costs of doing so.
Water Problems like Water Leakage or Burst of Water Pipe:
If your property has water problems like a burst pipe or leaky roof, contents insurance can help to cover these costs as well. You must protect your home from any damage caused by water so make sure no matter where the leak is coming from, it gets fixed as soon as possible.
Things That the Landlord Contents Insurance does Not cover
We have just seen the things and scenarios covered under the landlord content insurance. There are also content and scenarios that do not have coverage under landlord contents insurance. Let’s look at some of the things that are not covered by the landlord contents insurance.
- Items Damaged By the Escape of Water in Vacant Properties
Suppose you are a landlord with unoccupied property, and the water escapes from any pipes, fixtures or appliances in that property. In that case, it will not be covered under your contents insurance policy. It is important to note that this only applies if your home has been left vacant for more than a certain amount of days (usually 30 days).
2. Damage, Loss or Theft in Unoccupied Properties
If you are a landlord with an unoccupied property and suffer any damage, loss or theft, this will not be covered under your contents insurance policy. It is important to note that this only applies if your home has been left vacant for more than a certain number of days. To avoid any similar scenario, you need to get your items out of the property if it isn’t occupied. If that is not possible, you need to get an add on for this specific coverage in your landlord contents insurance policy.
3. High-Value Items like Electronics or Priceless Paintings:
Some items may not be covered under your home contents insurance policy. These include high-value items like electronics or priceless paintings left in unoccupied properties for over some time without being moved into another location where they can be protected from damage by the elements such as fire and flood water.
4. Contents Damaged By Wear and Tear Are Not Covered Under Landlord Contents Insurance
If your contents have worn out due to natural causes such as wear and tear over time, they will not be covered under landlord content insurance. This could include items like carpets or curtains if they become threadbare from being walked on too much.
5. Damage Caused by Tenants (When the tenant’s Credit Reference Was Weak)
If your tenant causes damage and the credit reference of that particular tenant is weak, then it will not be covered under landlord contents insurance. It is essential always to make sure you check references before letting someone into your home, as this could save you money in the long run if they cause problems later on down the line.
6. Damage, Loss or Theft Caused By Any Illegal Activity
If you are a landlord and your property is damaged, lost or stolen due to any illegal activity, this will not be covered under your content insurance policy. This could include damage caused by someone trying to break into the property illegally or theft from tenants involved in criminal activities.
As you can see, several things are not covered under the landlord contents insurance policy. It is essential to be aware of these scenarios to make sure you have the right coverage in place for your needs. If you are unsure about anything, speak to an insurance broker who will help guide you in the right direction. However, if you want to get these things covered under your insurance policy, all you have to do is discuss it with your insurance provider. Insurance providers usually add such coverage in their existing plans as an ad, but this will increase the premium charges for your policy.
How Much Does Landlord Contents Insurance Cost?
Landlord contents insurance usually costs between £30 and £50 per year, depending on the level of cover you require. This is a small price to pay for peace of mind in knowing your property and its contents are protected in any unforeseen circumstances. The price may increase based on factors like your location, the property’s content, and the security of the property being insured.
What Is Landlord Contents Insurance? To Conclude
So there you have it. Everything you need to know about Landlord contents insurance: if you are a landlord or own an empty property, then this is something that should certainly be considered. Landlord contents insurance can protect your investment and give you peace of mind in case something happens to the contents inside your property.
Find out more about the importance of insurance here.
Other useful links about Business Insurance:
Multi-Property Landlord Insurance
Cheap Landlord Insurance
Commercial Landlord Insurance
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