One of the factors of owning an investment property is ensuring that you have a good landlord insurance policy in place, especially at the times of year when there is potential for an increase in incidents.
While many companies will off landlord insurance, not all are created equal, and it is wise to look around and select a policy that is right for you and your circumstances. Once you have that policy in place, carrying out a health check annually to check that it still meets your needs is worthwhile to guarantee you are covered.
Aside from rent arrears cover, accidents and incidents can occur to the tenants, property or visitors. Taking out the right policy is a sound investment in protecting you and your asset.
Rent Arrears cover
Check the conditions of your policy around the requirements for rent arrears cover. Some policies require that a fixed-term lease agreement must be in place, and it is imperative that this is communicated with your property manager.
Some policies will also require the equivalent of the weeks or several weeks’ rent as an excess and knowing this prior to purchasing the policy can save you in the long run. Others may require a flat rate on claims.
Locks and devices requirements
As a landlord, there is a duty of care to ensure that all door and window locks are functional and secure. If these are not the case and the tenant has a break-in, any policy they hold may be void and as a landlord, you may be required to mitigate the loss.
In addition to a tenant’s loss, there could also be damage to the property, in which case your insurer may not cover the repairs if the property did not have adequate security in place.
Accidents and injuries cover
The tenants are responsible for any damage that they may cause to the property, as are their guests however accidents do happen, and a good policy will protect the ‘what if’s’ of potential accidental damage that may occur.
Sound policies will also contain a public liability portion to cover the tenant and any of their guests for any injuries that may be sustained due to an accident at the property, especially if as a landlord you have not maintained the property to a sound and secure standard.
Fire safety requirements
You are required to ensure that all fire safety devices like smoke alarms are working on the property prior to and during a tenancy. There are third-party companies who can also assist with annual checks on your behalf.
Failing to have the correct fire safety installed and in working order could mean that your investment is not protected should a fire occur, and you may find yourself out-of-pocket significant costs.
If you would like to know more about health checking your current investment insurance, speak with our property management team to work out what is right for you.