Do I Need Landlord Insurance If I'm Letting My Home?

If you rent out your Edinburgh property, you might think your home insurance policy will protect you against any eventuality. But as a landlord, it’s important to take out specialist insurance with additional cover that’s specific to your situation.

If you have a mortgage on the property, your lender will usually insist on landlord insurance. And while there’s no legal requirement to have it, landlord insurance offers a higher level of protection for things you may not have considered…

Who would pay for your tenant to be rehoused if the property flooded and was temporarily uninhabitable? And who would foot the bill if your tenant was injured in your property and sued? If you don’t have landlord insurance, the answer is… YOU!

Being a landlord means there are additional risks that don’t exist when you’re living in the property yourself so it’s important to make sure you’re insured against them. Landlord insurance is split into three types – buildings, contents and liability. There are also add-ons that offer further protection for specific issues, and landlords who own four or more buy-to-lets can take out portfolio insurance that will cover all properties rather than separate policies for each one.

Do I Need Buildings And Contents Insurance For My Buy-To-Let?

Whether you need just buildings insurance or buildings and contents depends on whether you’re letting a furnished or unfurnished property. Buildings insurance covers the cost of rebuilding the property plus permanent fixtures such as the kitchen and bathroom. For anything else, such as washing machines and sofas, you’ll need contents insurance too.

It’s worth noting that a contents insurance policy covers only the landlord’s belongings and not those of the tenant. They’ll need to take out a separate policy to cover their personal belongings.

Protection Against Loss Of Rent

Some landlord insurance policies will provide cover for loss of rent if you’re unable to let your property for any reason, such as fire or flood. Depending on the cover you select, you could also be covered for your tenant defaulting on rent payments, leaving you out of pocket. Make sure you carefully read the terms and conditions to ensure you’re fully covered for everything you need.

Damage And Vandalism To Your Edinburgh Rental Property

You can insure against damage and vandalism caused by your tenants. Hopefully, you’ll never need to claim, but we’ve all seen horror stories about the state some properties are left in when tenants leave when landlords don’t use a reputable letting agent. Insurance would cover you for replacing anything that’s damaged and cleaning up anything that’s been vandalised.

Home Emergency cover for your rental property

Home emergency protection can cover against boiler and heating issues, roofing problems, drains, pipes and sewers, electrical failures, lost keys, pest infestations and other common issues. This can be useful if your property isn’t being managed by a letting agent and you need an emergency response.

And don’t forget that landlord insurance is one of a list of items that is tax deductible. This means it’s an allowable expense and can be subtracted from any profit you declare on your annual tax return.

For guidance and advice on insuring your Edinburgh buy-to-let, speak to one of our expert advisors. To schedule a call with one of our experienced property managers, click here.


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