What is contents insurance for landlords?

From furnishings, appliances and personal touches, it’s not just the structure of your rental property that’s important.

If you are a landlord renting out a furnished or partly furnished property, it’s important to take a look at contents insurance.

Contents insurance for landlords can help provide peace of mind and cover the cost of any belongings that are damaged or stolen.

Here at Property118, we’ve teamed up with The Home Insurer which helps provide a top-class service and could help save you money on contents insurance.

Offer protection knowing you are covered

Another type of landlord insurance is buildings insurance, but this only covers the physical structures of your property such as the walls, and roof while contents insurance covers appliances in your property like electronics and furniture.

Having contents insurance is not a legal obligation but it can help offer protection knowing you are covered.

It’s important to remember that any tenant belongings will not be covered they must have their own contents insurance.

David McDermottroe, home and van insurance expert at MoneySupermarket, explains: “As a landlord, you will need to have buildings insurance in place while contents cover is optional.

“But it is definitely something most landlords should strongly consider – particularly if you let out any properties furnished.

“A good insurance policy would cover you if your items are lost, stolen, or damaged, and you should also be able to get cover for accidental damage as an optional add-on.”

Check terms and conditions of your policy

Some items may not be covered by a standard landlord contents insurance policy meaning they’ll need an extra level of coverage for you to claim.

Mr McDermottroe explains some landlord insurance policies have specialist cover.

He said: “Contents insurance policies have a limit on how much you can claim for a single item. If you have high-value items that exceed this per-item limit, you may need to get specialist cover.

“Contents insurance won’t cover any damage or loss to your belongings if the property was used for or involved in illegal activity, even if the insurable loss/damage is unrelated.”

If your tenants destroy your property on purpose, it’s best to check the terms and conditions of your policy.

Mr McDermottroe said: “This type of damage is called malicious damage in your insurance policy. Cover for malicious damage isn’t always covered as standard by a landlord contents insurance policy.

“Some providers may offer this cover as optional while others may not be willing to cover this type of damage at all.

“You should always read the terms of your policy carefully when applying for insurance to know for certain what is and isn’t covered.”

Accidental damage is usually covered by contents insurance

If your belongings are damaged or lost by fire, flood or theft then contact your insurer immediately.

It’s worth noting that accidental damage is usually covered by contents insurance such as a tenant accidentally dropping something in the sink and causing a crack or accidentally smashing a window.

However, items that are damaged from general wear and tear are usually not covered by landlord contents insurance.

There are a number of factors depending on how much you’ll pay for landlord contents insurance.

Moneysupermarket explains the key factors that affect the premium you pay:

• Your contents – The value of the contents you want to insure will affect the cost of insurance and items over a certain value may need to be insured separately.

• Your security – Installing solid security measures is not only likely to keep your property safer, but it can also lower your contents insurance premiums as a result

• Your location – If your property is in a high-risk area for crime or flooding, it may raise your premiums as you’ll be more likely to make a claim

• Your policy – Adding more cover that may not be standard with your insurance quote, such as accidental damage or new-for-old cover, is likely to cost more

• Your excess – Raising your voluntary excess can indicate to insurers that you’ll only be likely to claim if it’s really worth it, so they may be more willing to lower your premiums

• Your claims history – If you’ve made a number of claims previously, insurers might see you as someone more likely to make another claim in the future

The Home Insurer’s Jason McClean said: “Most landlords buy the minimum amount of landlord contents insurance to protect against loss of white goods and carpets. £5000 cover is typical with only furnished lets attracting more requirement.

“The other reason landlords buy contents insurance is to obtain public liability insurance when the property is a flat that has separate block insurance. This gives them protection against tenants or visitors suing them for liability on various issues when in the property – such as tripping on carpet.

“Landlord contents insurance is not usually expensive – £5k of contents cover with £2m liability is typically £100 or less for a year. It’s peace of mind for the careful landlord.”

Offer peace of mind

A property is more than just walls and floors when unexpected things happen contents insurance can offer peace of mind to landlords especially if furnishings are damaged.

With The Home Insurer, you know you are in good hands and your belongings are covered.

The most efficient way to get a personal quote with the best price and cover possible is to call the team on 01832 770965 so we can focus on your enquiry when you are ready and sitting down with your portfolio details to hand.

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