Brief Guide on Tenant Insurance and Landlord Insurance

Have you ever gone through a complete insurance policy guide from the start till the end? You won’t be the only person who would answer with a no. Hence, most people in the UK are not aware of the insurance policy when renting a home. Both the landlords and tenants should know what tenant insurance and cheap landlord insurance policies cover before the property rental occurs.

Before renting a property, there are many legal terms, definitions, and clauses that one must look out for. Hence, if you are unsure which insurance policy is suitable for you, you might end up making payments for the policy that doesn’t appropriately cover you. This can lead to more significant setbacks if there is an incident. Therefore, we are going to provide a brief guide on tenant insurance and landlord insurance.

Tenants Liability Insurance Explained

Tenant’s liability insurance also referred to as tenants liability cover, is commonly recommended by landlords or insurance firms. It can assist in securing your deposit amount in these scenarios:

If you accidentally incur damage to your landlord’s fixtures and fittings.

If you accidentally incur damage to any of your landlord’s furniture.

Tenant insurance can cover various types of losses. For example, it can be a tiny discoloured spot on the carpet, a broken frame of a painting, or more severe damages like broken doors or leaking pipes.

The majority of tenant insurance policies will not cover you for the liability arising from fire or theft. They won’t even cover you for flood-related losses. Or any losses to the building (the landlord’s building insurance compensates them). No policy will ever provide you security against wear and tear. Or for the occurrence of any damages that are caused unintentionally or by negligence.

Landlord Insurance Explained

There are several types of landlord insurance that can secure the landlord from various kinds of losses. The losses covered by the policy consist of the wreckage caused by a storm or fire. It also offers protection against floods.

Usually the policies offered by the insurance agents are for the home owners who are not renting the houses. Their policy covers most of the points that the landlords require but the renters should specifically tell the insurance agents to offer them a policy that is according to the landlord’s requirements.

What does the Landlord Insurance Include?

Here is an insight. Plenty of people select the standard package, not knowing that you can opt for specific covers to add them to your policy or get them excluded hence affecting the price and security cover of the insurance.

Many property owners know about basic buildings and contents policy coverage for the property they allot to tenants for renting purposes. However, these basic policies will not provide you with a complete cover if you are a landlord. Therefore, you must inform your insurance agent that you are a landlord who wants to rent the house to tenants to ensure you receive the appropriate cover.

The Fundamentals of landlord policy: Buildings compared to Contents

Buildings and contents insurance are the primary insurances that landlords commonly apply for to secure their assets. Buildings insurance is the type of insurance that insures the bricks and infrastructure with which the property is built and all the stuff that is fixed inside it. It is also known as fixtures and fittings insurance.

The second type of insurance is the contents insurance. Moreover, not all landlords will require contents coverage. That secures the moveable contents inside the house like seats, couches, furniture and electronics etc. There are several landlord specific building policies that will protect fewer contents if they are provided by the property owner in a partially furnished house.

The Conclusion

As a landlord or a tenant, you need to secure the funds and assets when the property is rented. However, the tenants can enjoy peace of mind with the tenant liability cover that can facilitate them in making payments for any losses that accidentally occur to the property. Similarly, with landlord insurance, the renters can effectively secure their buildings and assets.