Insurance For Tenants In Rented Property
If you are living in rented property then you should be sure to understand what types of insurance you require. Usually it is the landlords responsibility to insure the building and any contents (furniture and furnishings) that belong to him or her. This insurance will not include your (the tenant’s) possessions or any accidental damage you may cause to the landlord furnishings. It is essential that you obtain tenants insurance to make sure you are covered incase anything happens to your possessions.
It can be very easy to forget about buying rented propert insurance when you move into a new property. You should not think of contents insurance as an option but instead as a necessity. Should you get burgled or accidentally damage anything in your new home the right insurance policy will ensure it gets replaced with minimum fuss.
When you choose an insurance policy it is worth taking the time to ensure it covers your for your particular needs. Many policies for example will have a limit on high value items so if you have a particularly expensive stereo or camera for example you may need to specifically state this to the insurer when you take out the policy to ensure it is covered. Another item that is often not covered unless you state it are bicycles.
Above we’ve already mentioned some of the key things to look out for when choosing your property insurance. Other features of a good policy should include the following:
- Theft of possessions (via break ins)
- Theft or loss of possessions when you are not at home (say if you lose you ipod)
- Accidental damage to the landlords property or possessions (for example damage caused by a burst pipe)
- Replacement locks should you lose your house keys
- Replace old items with new ones should they be stolen
- Accident or injury to you and your guests
- Loss or damage to possessions by fire, floods etc
One thing you should do is be honest when obtaining insurance quotes. Insurers will ask you all kinds of questions such as where you park your car, what your profession ism the value of your possessions. Be sure to give them honest answers to ensure your policy is valid.
Also beaware that some policies will only be valid if you have particular locks fitted. In this instance you may be able to get your landlord to fit better locks to windows and doors, or at least to share some of the cost.
Insurance for Landlords of Rented Property
Many landlords forget that they still need to insure the property that they rent out. As stated above all landlords should at least take out buildings insurance on the property. While many owners of rented property do do this there are other types of landlord insurance that should be considered.
One of the most popular types of insurance taken out by landlords is insurance against your tenants not paying their rent or insurance against rent free periods when you are looking for new tenants. Many landlords fail to see how dramatic the impact can be if say they had to go for 6 months without receiving any rent from their property. How would they pay the mortgage? Depending on your financial situation it can be a great peace of mind to know that you are insured against any rent free periods, allowing you to plan your finances with much great certainty.
All landlords should take out landlords liability insurance. This is basically insurance against any accidental injury or damage that your property may cause your tenants or their guests. Typical causes of injury may be a faulty light switch, leaking gas pipe or simply any injury caused by the property.
Of course as a landlord you should insure your property for the contents you have in there. At the very least you are likely to have curtains, carpets, a few white goods that are left in the property with your tenants. These items should be insured in case they are damaged or fail.