The problems landlords face and how to protect yourself
Landlords can face a range of issues relating to their let property, and also to their tenants. Mostly these will be day-to-day, small problems (managing access, keys, services, etc), and it is your responsibility to deal with these. Our earlier article, providing a simple checklist of actions for landlords , will help you to limit these problems.
However, accidents can happen of a more major nature, and in order to protect your business and your property, it is vital to be aware of the protection which can be provided for you in such circumstances.
Here are the major problems you could face in connection with your let property or estate, and the methods which you should employ to protect yourself:
1) You have to pay for emergency repairs
More frequent an occurrence than you might think, it’s sometimes necessary to call out an emergency repair person to attend to your letting property; whether this is due to a burst water pipe or a gas leak. Purchasing landlord home emergency cover can protect you against these costs , allowing you to focus on the safety of your tenants above all else.
How to protect yourself: ensure you have landlord home emergency cover.
2) Your property is damaged in a flood or fire
If your property is damaged (or completely destroyed) in a flood or fire, having landlords buildings insurance in place will help protect you against the costs of repairing your property. This is one of the most important types of let property insurance you’ll see in this list, as it protects the structure of your property as well as the contents.
How to protect yourself: take out unlimited landlord buildings insurance.
3) You miss out on months of rent after your property is damaged
If your property becomes damaged or destroyed (potentially due to a flood or fire as above), to the point that you’re unable to rent it out while it’s getting fixed up, you can claim for the lost months’ of rent if you’ve taken out loss-of-rent insurance. This is particularly beneficial to commercial properties whereby the leaseholders can simply choose an alternative business location if the property works are likely to span over several months.
How to protect yourself: ensure you have property insurance with loss of rent included, in place.
4) You have a legal dispute with your tenants
If tenants default on their rent and you cannot recover this, rent guarantee insurance will cover the unpaid rent. In the unlikely event that you find yourself in a position of having to evict tenants who are refusing to leave and you wish to repossess your property, or you have any other legal dispute with your tenants, legal expenses insurance can cover your legal costs during this process , and depending on your policy you may be able to claim back any outstanding rent due to you.
How to protect yourself: consider Rent Guarantee Insurance with Legal Expenses insurance.
5) Your furnished possessions are damaged or stolen
If you rent a property to tenants furnished, and any of these furnished possessions are damaged or stolen (such as any sofas, beds, and electrical items), by any persons not legally permitted on the premises, you will benefit from the protection offered by having comprehensive landlord contents insurance in place. This type of landlord’s insurance replaces belongings on a new-for-old basis, and also covers any carpets in the property.
How to protect yourself: equip yourself with landlord contents insurance.
6) A tenant injures themselves in your property
If a tenant injures themselves in your property and they decide to make a personal injury claim against you, their case will depend entirely on whether a jury believes their injury was caused by negligence on your part. Though the main way to avoid this charge is to ensure your property is safe for habitation, having landlord liability insurance covers you, should a claim be made.
How to protect yourself: take out landlord liability insurance.
Insurance against the major problems which could arise in connection with let properties is the smart thing to have, to ensure peace of mind, and protect your investment. This is true for all landlords, whether you manage your let property personally, or whether you employ a letting agency or manager.
For more information on the property insurance options listed above, such as rent guarantee insurance and legal expenses insurance, contact Stride Limited today and ask us for a quote.