Why Take Out Landlord Insurance in the UK (even for flats!)

What is landlord insurance?

Landlord insurance is a specialised policy designed for property owners renting out their properties. While it’s not a legal requirement in the UK, it’s highly recommended for peace of mind.

This type of insurance covers a range of potential incidents that you, as a landlord, might face and should be a serious consideration even if your flat is in a block covered by the management agency’s building’s insurance.

For example, if you had a fire at your flat, buildings insurance would not typically cover the cost of replacing your carpets, bathroom, or kitchen.  Nor would it give you cover for any liability, loss of rental income, or any additional legal expenses.

What does landlord insurance cover in the UK?

Types of landlord insurance include:

• Buildings insurance protects the property structure
• Contents insurance covers white goods (fridges/freezers), bathrooms (baths, basins, shower), kitchen cabinets/fittings, carpets, light fittings and furnishings provided by the landlord
• Loss of rental income if the property becomes uninhabitable due to damage
• Landlord liability coverage for injuries or accidents involving tenants or visitors (such as tripping over a frayed carpet)
• Legal expenses, allowing landlords to handle disputes effectively. This coverage can be invaluable if you face tenant disagreements or potential legal issues.
• Malicious damage caused by tenants

All this helps landlords manage the unpredictability of rental properties.

Understanding what types of insurance cover exist allows landlords to tailor their policies, ensuring comprehensive protection for their unique needs.

And it’s often only when something goes wrong that its full value becomes clear.  We worked with one of our landlords recently around evicting tenants who had fallen into significant rent arrears.  Thanks to Morgan Associates’ expert team, and the rental and legal policy we offer, he recovered £17,000.  The policy covered him for the arrears, legal costs, damage to the property, changing the locks, and a proportion of the rent while a new tenant was secured.

Key factors to consider when choosing landlord insurance

Choosing the right landlord insurance requires careful consideration of several key factors:

• First and foremost, assess the specific needs of your rental property. Consider the type of property, its location, and any potential risks. Understanding these elements helps tailor coverage to fit unique situations
• Research customer reviews and ratings to gauge satisfaction with the insurer. A provider with a strong track record for handling claims efficiently can significantly ease future problems, and reduce stress
• Ensure necessary aspects are covered, from buildings to contents, legal liabilities and loss of rental income
• Compare costs against the coverage offered to ensure good value
• Assess the excess amount you are comfortable with
• Regularly review your policy and adjust as needed. This ensures continued alignment with any changing requirements and safeguards your property investments.

Common exclusions include:

• Wear and tear
• Long-term unoccupied properties
• Specific natural disasters, such as floods or earthquakes

How much does landlord insurance cost?

The cost of landlord insurance in the UK varies depending on several factors.

For example, the property’s location plays a significant role because areas prone to crime or extreme weather may result in higher premiums.

Insurers also consider the property’s size, type and coverage needs.

Some insurers may offer discounts for multi-property policies or long-term commitments.

Morgan Associate’s view on landlord insurance

We have partnered with independent insurance brokers, Alan Boswell Group, to offer comprehensive rental and legal policies, underwritten by Aviva.  We believe these policies offer best-in-class benefits for our landlord clients, including no excess to pay.

Our standard policy covers all rental arrears up to £2,500/month, with premium policy cover extending this to up to £5,000/month.

Furthermore, the policy will also cover any damage to the property caused by the tenants, the cost of new locks, and 75% of the monthly rent for a period of three months while the property is relet.

Our experienced team acts on our client landlords behalf in cases of rental disputes, including serving notice, liaising with solicitors, submitting evidential documents, and attending court.

In Summary

When evaluating landlord insurance providers in the UK, we recommend you select a policy which offers comprehensive coverage, tailored to your needs, at a reasonable price.

Reputation for excellent customer service is also crucial, as it reduces the stress associated with claims processing.

To find out more about Morgan Associates’ landlord insurance policies, please contact our Accounts Manager, Lisa Iles: email: Lisa@morgan-associates.co.uk or dd: 01242 547649.