Income, Mortgage & Other Protection
Alternative Accommodation Insurance
As the name suggests, this covers the cost of putting your tenant up in alternative accommodation should your property become uninhabitable due to a structural default or flood, for example.
Emergency Assistance Cover
This policy will provide a sum insured following a domestic emergency at the insured address( such as failure of the primary heating system), failure of cooking facilities, lost keys, plumbing problems, leaking roofs or guttering, and security of doors and windows. There is usually no excess and no limit on the number of claims that can be made in any one year. Landlords or tenants can usually call a 24-hour, 365-days a year helpline.
Legal Expenses Insurance
Your tenants’ circumstances can change, and you could find that they stop paying their rent because of a relationship breakdown. Or perhaps they had no intention of paying the rent in the first place! Either way Legal Expenses Insurance will cover the solicitor, barrister, bailiff and court costs should you need to pursue them for rent and/or damages through the legal system.
This covers you up to £2 million as standard. Personal injury claims have risen dramatically in the last 20 years and awards over £100,000 have been known (according to the Association of Residential Lettings Agents - ARLA). So you might consider this insurance, although it is not the cheapest.
This type of policy can be very useful for landlords – doubly so because it is tax deductible. It can guarantee you receive the rent you are expecting, regardless of any change in the tenants’ circumstances, usually for a fixed period of six to 12 months. To qualify for this insurance, which is available from specialist insurers, you or your agent need to get satisfactory references about your tenants upfront. If their references are not acceptable to the insurer you may need someone to act as a guarantor. It is also a condition that you obtain at least one month’s deposit upfront.