There is no law which says landlords or tenants must
have insurance but it could be foolish not to take out a
policy considering the risks.
It is normal practice for landlords to cover themselves by
insuring their building, any contents they own inside and
against any other additional risks.
These types of insurance are very important as modern
society and tenants are now more likely than ever to take legal
action against landlords should any problems arise.
As a landlord your policy will need to be specifically
designed for letting and to cover several additional risks.
However, as more people let properties policies have developed
and they now cover almost every conceivable eventuality including
the following areas:
- Building and landlord's contents
- Cost of evicting a bad tenant
- Cost of hotel accommodation if your tenant refuses to leave on
time
- Emergency repair services
- General legal costs
- Loss of rent if the tenant does not pay
- Loss of rent and the cost of re-housing your tenant in the case
of fire or a flood
- Malicious damage and vandalism by tenants and others
- Public and occupier liabilities
Tenants normally do not pay for building or any other risks
insurance but they should cover their own contents and possessions
and consider additional risk cover with a relevant policy.
