If you are a landlord, then you will already be aware of the fact that there are a lot of different aspects that you have a responsibility to cover. However, one thing that many landlords seem to forget is the fact that they need to protect themselves and their properties, too.
Since you’re letting a property, you have a number of obligations to fulfil (which include things like the upkeep of the property, and contracting specialists for any repair or maintenance work) and need to ensure the proper financial protection is in place in the event that something goes wrong, you suffer loss of rent, or urgent work needs carrying out.
What Is Landlord Insurance?
In simple terms, landlord insurance is a specialist type of property cover for anyone letting out one or more properties, buildings or HMOs. Different kinds of landlord insurance provide different kinds of cover, due to the circumstances and areas that need to be considered – this is why we offer separate policies for both commercial and residential properties.
Commercial property landlords will be concerned over things like large sums of lost earnings, big scale repair/maintenance work and much intensive and complicated contracting work; residential landlords will be concerned with smaller-scale repairs, a different kind of tenant and varying kinds of contents.
Why Does Normal Home Insurance Not Provide The Right Cover?
Exactly what home insurance does and doesn’t cover can be complicated, as there are a variety of policies available. However, the key thing to remember is that home insurance is focussed at tenants or homeowners, and protects things like their own possessions, buildings and so on.
Where landlord insurance differs is that, regardless of commercial or residential insurance, it is designed with your properties being a business and source of income in mind. This is why our insurance policies cover things like loss of rent, rent guarantee, and your own contents – for example, if you let a property with appliances and these need to be replaced or repaired.
From a commercial standpoint, a standard contents insurance policy isn’t appropriate – a commercial landlord insurance policy will cover things like employers and public liability, accidental damage cover and (for those in the retail sector) products liability.
What Is Buildings Sum Insured?
If you are going to be taking out landlord insurance, then you need to make sure that you know what the buildings sum insured on the policy is. To put it simply, the buildings sum insured, or BSI as it is more commonly known, is the maximum amount that the insurance company will pay out in respect to loss or damage. This amount is linked to what the cost of rebuilding the property would be – it’s important to note that it is not linked to the market value of your property.
The BSI will generally increase over time, but it’s important to be accurate as undervaluing could result in the appropriate amounts not being paid out if required.
Here at GSI Insurance, we are able to offer a range of different landlord insurance policies in order to suit your needs. If you are planning on building your property portfolio, then you should definitely consider taking out a landlord insurance policy – you never know when you might need to make a claim.
Contact us today, either by sending us an email using our online contact form or by calling us direct, for further information, expert advice, or for an insurance premium quote.