A landlord insurance policy is designed to cover a landlord in the case of lost rent or damage to the property that you are renting out. It also provides liability insurance protection so that you won’t face expensive legal bills or compensation costs in the event that somebody is injured on the premises.
Of course landlords have a whole range of other obligations of which taking out a landlord insurance policy is only one.
Some things landlords will need to consider include:
Do you need an HMO (House in Multiple Occupation) Licence?
If your house is likely to have 5 or more residents or has more than three storeys, you’ll need an HMO licence. You’ll need to talk to your local council to find out just what the process is, but it’s an essential part of letting a larger property.
Are you looking to only rent a single room in your property?
If you are then the good news you may be eligible for tax relief, the government lets you rent a room in your own home (not a separate property) and allows you to earn up 4,250 pounds a year tax free from it. The only bad news is that you can’t offset the cost of your landlord insurance policy against tax as well if you use this approach to letting.
Does your mortgage allow you to let a room or the house?
It might sound silly but many mortgages don’t allow anyone but the owner and their family to rent the house, so you’ll want to check and see if your lender is OK with you letting the property out. If your policy won’t allow it, you can normally change to a different policy which will.
Have you taken appropriate safety precautions?
It’s not just you that needs protecting when it comes to rental property; it’s also the property itself and its occupants. You’ll want to make sure that you’ve installed fire and smoke detectors, and had the gas and boiler checked out by a qualified professional. Otherwise in the event of an accident you’ll be facing steep bills, which you’ll have to foot yourself.
Find the right landlord insurance policy at Landlord Buddy.