Landlords' insurance is an
insurance policy
In insurance, the insurance policy is a contract (generally a standard form contract) between the insurer and the policyholder, which determines the claims which the insurer is legally required to pay. In exchange for an initial payment, known a ...
that covers a property owner from financial losses connected with rental properties.
The policy covers the building, with the option of insuring any contents that belong to the landlord that are inside. Landlords' insurance is often referred to as buy-to-let insurance, however
buy-to-let insurance is a type of landlords' insurance. It is important to distinguish between buy-to-let insurance which generally covers one property that has been purchased with a buy-to-let mortgage, and multi-property insurance, which covers two or more properties. Each of these types of landlords' insurance covers different things. Landlord insurance is separate from landlords' emergency cover.
The policy will normally cover standard perils such as
fire
Fire is the rapid oxidation of a material (the fuel) in the exothermic chemical process of combustion, releasing heat, light, and various reaction products.
At a certain point in the combustion reaction, called the ignition point, flames a ...
,
lightning
Lightning is a naturally occurring electrostatic discharge during which two electrically charged regions, both in the atmosphere or with one on the ground, temporarily neutralize themselves, causing the instantaneous release of an avera ...
,
explosion,
storm
A storm is any disturbed state of the natural environment or the atmosphere of an astronomical body. It may be marked by significant disruptions to normal conditions such as strong wind, tornadoes, hail, thunder and lightning (a thunderstorm), ...
, escape of
water
Water (chemical formula ) is an Inorganic compound, inorganic, transparent, tasteless, odorless, and Color of water, nearly colorless chemical substance, which is the main constituent of Earth's hydrosphere and the fluids of all known living ...
/
oil
An oil is any nonpolar chemical substance that is composed primarily of hydrocarbons and is hydrophobic (does not mix with water) & lipophilic (mixes with other oils). Oils are usually flammable and surface active. Most oils are unsaturated ...
,
subsidence,
theft
Theft is the act of taking another person's property or services without that person's permission or consent with the intent to deprive the rightful owner of it. The word ''theft'' is also used as a synonym or informal shorthand term for som ...
and
malicious damage. Each insurance policy is different and may or may not include all these items. Optional coverage might include accidental damage, malicious damage by
tenant,
terrorism
Terrorism, in its broadest sense, is the use of criminal violence to provoke a state of terror or fear, mostly with the intention to achieve political or religious aims. The term is used in this regard primarily to refer to intentional violen ...
, legal protection, alternative accommodation costs,
contents insurance,
rent guarantee insurance, and
liability insurance
Liability insurance (also called third-party insurance) is a part of the general insurance system of risk financing to protect the purchaser (the "insured") from the risks of liabilities imposed by lawsuits and similar claims and protects the in ...
.
Landlords' insurance policies typically do not cover any personal property belonging to tenants, or otherwise protect the interest of tenants; although a liability policy protecting a landlord or
property manager will be of benefit to tenants should they incur a loss for which the landlord is responsible.
References
External links
{{DEFAULTSORT:Landlords insurance
Types of insurance