Why landlords should have Landlord Liability Insurance

Do you need it? Yes.

Landlord liability insurance is not a legal requirement and most landlords don’t have it. The reality is that most landlords have never heard of it and if they have they certainly don’t know what is it for and what is the level of cover they need.  Once you receive a correspondence from “no win, no fee” solicitor for a claim that your tenant is making, you will wish you had that policy in place.

What is it?

It is a type of insurance that compensates loss, damage or injury to your tenant or your tenant’s visitors.  It will also cover you for any injuries that your contractors may sustain in your property (loose stair carpet and the contractor falls of his ladder).  You are liable and responsible in case your tenant has an accident and we are all well aware of personal injury claims that are soaring.  Majority of claims are around £5,000 but there are ones that have topped £100,000.  Your landlord liability insurance will cover any legal cost you need to meet should you defend the claim.

How much cover should you get?

Most of insurance companies will combine your liability with contents cover and the limits for liability can range from 1m to 5m.  In most cases 1m will be more than sufficient if you are a flat owner.  Lastly, do not assume your building insurance covers your liability as it rarely does.

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