Landlords and Tenants: Home and Contents Insurance
Landlords
Anyone who lets or sub-lets a home or flat is required, at a minimum, to have home buildings insurance. In addition, depending on the level of furnishings included with the property, home contents insurance will also be necessary.
There are also other types of home insurance landlords may want to consider to protect themselves from serious out of pocket expenses should certain situations arise; for example non-payment of rent, emergency repairs or having to take legal action during an eviction, etc. These include:
Rent Guarantee – No matter how hard you try to pick the right tenant, there will be those who do not pay their rent. Rent guarantee insurance sees to it you get paid when you are having issues with your tenant and for up to three months after resolution while you find a new tenant.
Legal Fees – Legal fees insurance covers, as the name implies, legal fees when dealing with non-payment of rent, failure to vacate, unauthorised inhabitants and other tenant related issues.
Emergency Assistance – Covers the cost of contractor call-out and any works required, to a maximum limit. This is emergency cover and will not cover any problems relating to poor maintenance.
Tenants
While tenants do not require home buildings insurance, that is provided by landlord, they should consider home contents insurance to protect possessions and any household items they’ve provided; for example in unfurnished accommodation. The types of content insurance and level of coverage vary, replacement as new (new for old), indemnity (cost of repair) etc., so it is a good idea to comparison-shop before committing to a policy.
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