Why landlord insurance is a good idea.
If you’re renting an apartment or house and you don’t have landlords insurance, you might want to reconsider.
As a landlord, your biggest areas of concern should be:
- Protecting your asset against damage
- Liability cover (in case you are sued)
- Loss of rent
We find a lot of landlords think that their block insurance or buildings insurance policy covers them for ever eventuality but that is not the case. It’s important to note that block or buildings insurance and landlord insurance are two different things.
Buildings insurance will usually insure your property for the standard benefits including fire, flood, earthquake and storm. It should cover the rebuild cost of the property in event loss or damage. It should cover for legal liability if someone has an accident or is injured while on your premises but it does not extend to legal liability for tenants living at the property.
Landlords Insurance provides you with cover for accidental death or injury or illness to tenants living at your property. Loss of rental income can be included to provide financial protection if your property becomes unfit to live in as a result of damage. Contents cover will protect the contents that you own and have provided for tenants use.
Landlord Insurance Perils covered:
- Fire, lightning, earthquake, explosion
- Impact by aircraft/flying objects
- Trace & access
- Theft or attempted theft
- Pipes and cables
- Escape of oil
- Escape of water from heating installation/appliance
- Storm or flood
- Falling trees or branches
- Falling aerials
- Riot, civil commotions, labour, political disturbances, vandalism and malicious acts
- Subsidence, landslip, heave
- Loss of rent/alternative accommodation
- Fire Brigade charges
- Property Owners Liability (member of the public suing you as owner of the property for injury, illness or damage)
- Landlord Liability (tenant suing you as owner of the property for injury, illness or damage)
How much does it cost?
Apartment: The average cost for a landlord contents policy is approx. €185.00. It will protect the Landlord against damage to contents within the apartment, but more importantly the liability cover and loss of rent.
House: It varies a lot more for houses depending on the size of the property, sums insured, claims history etc. but it ranges from €300.00-€800.00
Please note that similar to Earnest’s fees, maintenance works etc. Landlords Insurance is an allowable expense which you can claim against your rental income.