Insurance on your rental

I really encourage landlords and tenants to not only have insurance but understand what they are covered for.

Many landlords have previously lived in their rental property and need to discuss any changes with their insurance company. A rental policy and a personal policy are quite different.

All companies and policies are not created equally and having a good conversation with your insurance company about what you are covered for is a must. Does your policy cover rental arrears, do you need to meth test between tenancies, how often do inspections need to be carried out etc.

Landlords also need to provide insurance information on any new tenancies, to the tenants, including what the excess is. They also need to provide the policy details if required to the tenants.

In August 2019 the insurance laws relating to rentals changed and state that if a tenant or their guests cause damage to a rental they are liable for the damage. They can draw on the landlords insurance policy to repair the damage and must pay up to four weeks rent or the landlords insurance excess, whichever is lower.

This leads on to tenants and understanding what your insurance covers. In my experience many tenants do not have contents cover, which means that if something were to happen like the house burning down, you will have no compensation. Not only will you lose everything you own in the house (Landlords insurance only covers the house and what they own in it such as curtains, oven etc) you may also face interrogation from the landlords insurance company who will be looking for someone to claim the money back from. When you set up your contents insurance I recommend asking specifically if the policy covers liability as well as insurance. If you cause damage to your rental – your excess may be lower than your landlords.

Now is as good a time as any to consider insurance if you haven’t already or to talk to your insurance company and be sure you are properly covered.