When you own your own home, you will have buildings contents insurance and possibly other policies asides. If you become a landlord, there are different types of insurance that you can take out. One of these is broadly termed “landlords insurance” What you are covered for will depend on the type of insurance you take out. In this article we will concentrate on why you need to be covered by building property maintenance insurance.
No one can predict when a repair needs to be carried out on your home. When it is your own home, certain things can wait. But, as a landlord, they can’t. You can’t leave a tenant without hot water, or with a leaking roof. After a break in, you need to ensure that the property is secure. If you have empty properties, they are a target for squatters and burglaries. When you use the services of a property maintenance team, your empty property will be boarded up and secured, depending on the area and if it really is necessary or not.
Building Property Maintenance Insurance Policies : What You Sign
When taking out landlord cover for your properties, you need to be sure about what you sign. Whereas your own home contents insurance will be relatively cut and dry, a landlord policy won’t. There are different areas you can insure against, and you may also request that your tenants have their own contents insurance. This is now standard and compulsory for most housing associations.
The confusion really starts when you have more than a couple of properties. You must be sure that the insurance policy will accommodate new properties. One policy may not allow you to add additional homes, unless they are in the same area. Some may not allow you to own more than two properties in the same street. Others will not be valid for HMOs. The list of complications is endless, and that’s why we recommend professional advice.
When you take out an insurance policy as a landlord, it is important to look at the bigger picture. Your needs may change from one week to the next. A property may become vacant. Will the insurance be valid if the house is empty? Do you need to give a certain amount of notice before cancelling the policy for one of your properties?
One of the most important areas that need to be covered by your building property maintenance insurance is repairs. As we mentioned at the start of this article, you cannot leave your tenants without hot water, heater, or in need of repairs. Landlords insurance will ensure that all repairs can be carried out by your maintenance team, and that you will have time to make the payments as and when you can. But, always ensure that your properties are inspected on a regular basis too. A property that has been left to get into disrepair may not be covered by your policy, meaning you are simply wasting money on insurance. All this and much more needs to be considered when you become a landlord.