Do I Need Landlord Insurance By Law?

As a landlord, you have many tasks before renting your property to tenants. This includes – but isn’t limited to – ensuring you have the correct licences, permits and safety certificates to avoid landlord fines. But what about landlord insurance? Is landlord insurance required by law? Let’s find out.

Is Landlord insurance required by law?

Having landlord insurance is not a legal requirement, but it is highly recommended because it covers a range of potential risks, such as property damage or liability claims made by tenants.

When landlord insurance is required

However, it’s worth checking some fine details. Most mortgage lenders will have landlord insurance as a condition of their loan. If this is the case, you will be required to get landlord insurance. This is because they want to ensure their financial stake is protected.

There are different types of landlord insurance available. If a landlord doesn’t take on landlord insurance, they may be liable for any damages caused and face financial issues due to loss of rental income or various legal costs.

By choosing CIA Landlords Insurance, we can provide landlords with peace of mind knowing that they have comprehensive coverage for a range of potential risks associated with their rental properties. 

Why it is beneficial to get landlord insurance

Uninsured landlords may also have the financial burden of paying for repairs. They will be liable to make compensation payments for tenants if they suffer an injury or their personal items are damaged.

Many surprises, hazards and headaches can occur suddenly when renting out your property. As a result, you could get caught out by many financial burdens. Having landlord insurance can protect you against any of these sudden occurrences.

What is property damage?

Let’s outline what exactly constitutes property damage. Damage is considered to be anything that could reasonably have been avoided. This could happen by accident, or this could be malicious damage by your tenant or someone they know. This could be:

• Broken windows
• Damage caused as a result of a party
• Stains and/or cigarette burns on soft furnishings
• Pet damage
• Broken furniture and furnishings (if you are providing a furnished property)
• Damaged electrical appliances by bad usage

The following could also be classed as property damage. These are unlikely to be caused by a tenant or someone they know:

• Structural repairs
• Plumbing
• Electrical wiring
• Gas appliances

The issue of mould can also fall under the umbrella of property damage. Mould is often caused by bad exploitation of the property. This could be not ventilating the property well, not using the heating properly throughout colder months, allowing for moisture to build up in bathrooms or laundry rooms, leaks or not using the extractor hob during cooking.

As a landlord, you must do what you can to ensure that mould does not grow in your property. Prevention is better than cure. That way, if you do get a mould problem, you can try and work out if it is in fact something that your tenant is doing that is causing it instead.

Is fair wear and tear covered by landlord insurance?

There is a big difference between property damage and fair wear and tear. Fair wear and tear can be defined as reasonable damage through everyday use. Examples of this could be:

• Lightly scuffed walls
• Worn carpets
• Chipped paintwork
• Appliances that have broken down due to age
• Scratches and marks on wooden furniture, door handles and worktops
• Discolouration of furnishings and upholstery

It is important to note fair wear and tear is not covered by landlord insurance. Landlords should budget to ensure costs for the above are covered.

How much does landlord insurance cost?

The price of landlord insurance can change depending on a variety of facts. These are the factors that can influence the cost of landlord insurance.

• Level of cover you want to take out
• Property location
• Size of the property
• Age of the property
• Claim history
• Choice of payment: annual or monthly

Although landlord insurance isn’t required by law, it is worth getting yourself covered with the appropriate landlord insurance. You may even be required to by your mortgage provider. Policies can protect you against a range of circumstances, including fire, flood, loss of rent and more.

At CIA Landlord Insurance, we compare landlord insurance deals for you from a range of underwriters, providing landlords and property owners/agents with a full insurance solution and service at competitive rates. Contact us today and let us help safeguard your investment.