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Property Insurance - What are you missing?
By Niraj Mamtora – Forum Insurance

Whether you’re new to the property ladder or an experienced landlord, protecting your property and
income can never be overlooked if you want to keep moving up the ladder. With so many varying
options, it’s easy to get confused by the jargon and think all the policies are equal, but they’re not.
It’s important to search for a bespoke policy rather than just taking the first option or the cheapest
option on the market.

Aside from potential issues with your building, like burst pipes, you’re also trusting your tenants to take
good care of your property. From accidental damage to contractual disputes, landlords risk facing
empty pockets and undue stress.
Buildings and contents cover
While landlord insurance isn’t a legal requirement, it may be a condition of securing a buy-to-let
mortgage. It also gives you added protection that you won’t find in standard home insurance policies.
Home insurance policies are designed to cover owner-occupied buildings and their contents. Landlord
insurance policies extend the level of coverage, as your tenant won’t look after your property in the
same manner you would. You don’t need to worry about your tenant’s belongings; they are responsible
for covering anything they own, even if it’s furniture they bring to your home.

Loss of rent
One thing you may not realize landlord insurance can cover is loss of rent. Missing out on rent can
incur a significant financial loss, especially if it spans many months or involves multiple properties.
There are two main reasons why you might not receive rent. Your property may become unfit after
an event such as a fire or water damage; this is known as ‘rent receivable’ cover. The second is if your
tenant is unable to pay due to changing circumstances, which is ‘rent guarantee’ cover. You’ll need to
specify which coverage you want, with rent receivable being more common.

Property owners liability
Property owners’ liability cover pays if your tenant is injured or has an accident on your property or
because of your property. You can be taken to court, and legal fees and defence costs can run into the
millions, depending on the impact of the damage. Examples of claims we’ve helped our clients with
include: if a tenant trips over a loose floorboard and severely injures themselves; if roof tiles fall onto
your tenant’s car and smash the windscreen; or if a gas explosion damages your tenant’s belongings
and causes serious injury or death.

Legal expenses
The last, but by no means unimportant, coverage you need to consider is legal protection. It covers the
costs associated with legal disputes, whether the claim has been lodged by you or against you.

Unoccupied property insurance
If any part of your property is unoccupied, it requires a different policy altogether: unoccupied
landlord’s insurance. It protects you against natural disasters, gas and oil leaks, theft, and vandalism.
Unoccupied properties carry a higher risk of damage, so seeking the correct level of cover for your
needs is essential. Generally, it’s required if you’re between tenants, have students who have finished
for the academic year, or have a renovation planned.
Prevention is always better than a cure. Having the correct insurance policy in place will protect your
property, assets, and income through difficult times. Suppose you’re in doubt that you’ve got the best
cover at a competitive premium. In that case, finding a trusted and reputable insurance broker is the
next step to safeguard your property and the income it generates. Over the last three decades, Forum
Insurance has provided peace of mind by safeguarding landlords’ properties and income. You can get
in touch with Niraj at niraj@foruminsurance.com or on 0208 909 2899.
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