Why Landlords Should Go Beyond Basic Insurance
Being a landlord comes with responsibilities – not just to your tenants but also to your property. While the minimum legal requirement is to have buildings insurance, relying on this alone might leave you vulnerable to unexpected costs and situations.
Here’s why expanding your coverage with landlord-specific insurance policies can offer better protection and peace of mind.
What Additional Insurance Should Landlords Consider?
- Alternative Accommodation Cover
Imagine your rental property suffers a severe leak and becomes uninhabitable. As a landlord, it’s your responsibility to provide alternative housing for your tenants until repairs are completed. This type of insurance covers those costs, helping you manage this obligation without financial strain. - Public Liability Insurance
If someone is injured or suffers property damage due to your rental property, you could be held liable. For instance, leaving hazardous items like cleaning materials at the property could result in injury, leading to claims against you. Public liability insurance helps cover legal and compensation costs in such situations. - Landlord Liability Insurance
This coverage is tailored to landlords, protecting you from claims linked to accidents or injuries at your property. It’s an essential safety net for safeguarding your finances against unforeseen events.
Why Comprehensive Coverage Matters
While basic buildings insurance is a good start, a more robust policy tailored to landlords ensures you’re prepared for potential challenges. From covering unexpected repair-related costs to addressing legal claims, comprehensive insurance protects both your property and your peace of mind.
Tax Benefits for Landlords
Did you know that landlord insurance premiums can be offset against your rental income when calculating taxable profits? This means that the cost of your insurance, along with property management fees, can help reduce your overall tax liability. Not only does this make comprehensive insurance a wise financial decision, but it also ensures you’re maximising the benefits of being a landlord.
Next Steps for Landlords
To ensure you’re fully protected, consider consulting an expert. At Nicol & Co., we often recommend SJL Insurance, which offers tailored services for landlords. If you’re seeking guidance, feel free to reach out to me on the below details: James Gwynne – [email protected] or 01905 675999.
Additionally, if you’d like more tips for landlords and managing a successful property portfolio, check out my book, available here: https://amzn.to/3XQhYcq It’s filled with practical advice to help you manage your rental properties effectively.