Updating post from Reddit.
Hello!
I was hoping to get other landlord's thoughts on this and see what they do.
I've recently started letting out an unfurnished flat. Included in the service charge is buildings insurance, engineering insurance and public liability.
I've looked into policies but they all seem to offer buildings insurance AND rental protection, or contents AND rental protection etc. I've found it hard to find insurance covering just the aspects I need.
My question is whether people think it's worth getting additional insurance to cover other aspects, and if so what they would cover? Do people have any recommendations on companies to speak to?
Thanks very much!
In a leasehold flat, the insurance is generally just buildings insurance and public liability insurance. You can get stand-alone rental guarantee insurance and legal protection if you wish. You don't really need contents insurance; that's for the tenants to sort, especially in an unfurnished flat.
I guess that's my question really - what're people's views on rental guarantee and legal protection insurance?
The way I look at it, insurance companies will price rental insurance so that it makes them money, you're paying a premium for stable income.
So decision ultimately comes down to your liquidity needs- if you have a big mortgage say and need the rental income to service this, then makes sense to go for the rent guarantee. But if it's unlevered, or you have reasonable emergency cash, then may not be worth it
Thanks for your thoughts, very interesting to get other views on it - much appreciated!
Before, it was nice to have. It's a waste if you know you have great tenants, but it's fantastic if you start getting a bad vibe with a new tenancy.
However, as we approach Labour's Rent Reform, which gives tenants three months of arrears before any action can be taken, and considering the undoubtedly overwhelmed court system due to the ban on Section 21 evictions, I believe it could become a necessity.
Please be cautious; there are Terms and Conditions. You must conduct your checks, references, and ensure you meet your obligations under such insurance or they won't pay out.
You can 'self insure' if you have the savings to cover voids, and can mitigate your risks by taking on only secure applicants.
Thanks.
Great question. My HSBC covers some insurance.