I am a new investor to the private rented sector – I would like to know does landlord insurance cover loss of rent?
If you are a landlord / property owner, a ‘home’ insurance policy may not provide enough cover, so it’s important for you to ensure that you have additional coverage in place to protect yourself against any potential financial loss of income.
In the event of a claim for loss or damage caused for example by fire, flood or storm, and where your tenant can no longer reside in the property or leaves, and ceases to pay rent, cover for rental loss is vital to protect your investment.
Typically Landlord ‘home’ insurance policies extend to include loss of rent cover, usually calculated as a percentage of the sum insured (on buildings or contents) e.g. 15% / 20%, and often only for a maximum indemnity period of 12 months following a loss.
In most cases landlords are not contractually obliged to provide alternative accommodation, however the policy may also extend to cover the cost of reasonable alternative accommodation in the event that you place the tenant / occupant in a temporary dwelling for a period of time during repair works.
Choosing the right type of Landlord Insurance policy should not be about going with the cheapest quote, as often the cheapest offerings have their shortcomings and only in the event of a claim will that become apparent to you.
Response Credit : S.A. Faughnan (Brokers) Ltd.
In April 2022, S.A. Faughnan (Brokers) Ltd. celebrate 40 years in business and have become one of the leading property owner brokers in the industry and have been supporting IPOA since 1997.