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Property Owners
What is Property Owners' Insurance?
Property Owners insurance provides financial protection for landlords and property investors, covering risks associated with owning and letting property. Whether you own a single property or manage a portfolio, this insurance safeguards against property damage, liability claims and potential loss of rental income. It’s designed to protect your investment and ensure business continuity in the event of unforeseen incidents, such as fires, floods, or tenant disputes.
What are the coverage areas?
Tailored to the UK property market, our Property Owners policies offer peace of mind, allowing landlords to focus on growing their portfolios while being covered against a wide range of risks.
- Covers the cost of repairing or rebuilding the property in the event of damage caused by insured perils such as fire, storm, flood, vandalism or subsidence.
- This can include structural elements like walls, roofs and fixtures, as well as permanent fittings like kitchens and bathrooms.
- Provides compensation if the property becomes uninhabitable due to an insured event such as fire or flood, leading to a loss of rental income.
- This ensures that landlords continue to receive income while repairs are made to the property.
- If tenants need to be temporarily rehoused due to property damage, this cover pays for their alternative accommodation costs, ensuring minimal disruption for tenants and landlords alike.
- Covers the cost of replacing or repairing contents owned by the landlord, such as furniture, appliances or carpets, in furnished or part-furnished rental properties.
- Typically applies to damage caused by fire, theft, vandalism or other insured risks.
- Covers the cost of legal claims made by third parties such as neighbouring property owners who suffer injury or damage as a result of your property or activities related to it.
- This is particularly relevant for landlords with communal areas or shared spaces, where visitors could be at risk.
- Provides cover for legal costs incurred in resolving disputes related to the property, such as tenant eviction, rent recovery or disputes over tenancy agreements.
- It can also cover legal fees associated with contract disputes with service providers or property maintenance contractors.
Insurance With A Purpose
Key features:
Accidental Damage: Many policies offer optional cover for accidental damage to the property, such as damage caused by tenants or their guests, giving landlords additional peace of mind.
Employers’ Liability Insurance: If you employ staff to maintain the property (e.g. cleaners or maintenance workers), this cover is a legal requirement. It protects against claims from employees who suffer injury or illness while working on your property.
Unoccupied Property Cover: Provides protection for periods when the property is vacant, whether between tenants or during refurbishment. Standard policies may not cover unoccupied properties, so this ensures the building is protected even when empty.
Malicious Damage by Tenants: Some policies include cover for intentional damage caused by tenants, such as vandalism or wilful destruction of property. This helps landlords recoup repair costs and maintain the property’s condition.
Benefits:
Financial Protection: Property Owners insurance ensures that landlords are not left out of pocket in the event of damage to their property or legal claims from tenants or the public. It covers repair costs, legal fees and rental losses, protecting your investment.
Business Continuity: For landlords who rely on rental income, the loss of rent cover ensures cash flow is maintained if the property becomes uninhabitable. This is critical for covering mortgage payments and other financial commitments.
Tenant Satisfaction: Offering alternative accommodation during repairs or covering liability claims helps maintain a good relationship with tenants and provides them with peace of mind, knowing they are protected as well.
Peace of Mind: With comprehensive insurance in place, landlords can focus on managing their properties without worrying about unexpected costs from accidents, damage, or legal disputes.
Key Considerations:
Property Type: Whether you own residential, commercial or mixed-use properties, it’s important to ensure the policy is adequately tailored. Some policies are more suited to commercial landlords, while others are designed for residential lettings.
Unoccupied Property Conditions: Check your policy for any specific conditions around unoccupied periods. Some insurers require additional security measures or maintenance checks if the property is vacant for an extended period.
Policy Excess: Property Owners insurance is typically subject to an excess – this is the amount you must pay towards a claim. Make sure the excess is manageable and fits within your budget when selecting a policy.
Tenant Type: Some policies may exclude or limit cover based on the type of tenants you let to (e.g., students, housing benefit recipients, or commercial tenants). It’s important to choose a policy that covers your tenant demographic to avoid claim rejections.
Property Location: The location of your property can affect premiums, with properties in flood-prone areas, high-crime neighbourhoods, or areas with a history of subsidence likely to attract higher premiums or require specialist cover.
Choosing a Property Owners' Insurance Provider:
Specialist Insurers: Choose a provider with experience in the property owners’ market, as they will offer more tailored policies and understand the unique risks landlords face.
Claims Service: A good insurer will have a strong reputation for handling claims quickly and efficiently. Look for reviews or testimonials that highlight the insurer’s ability to process claims fairly and without unnecessary delays.
Flexible Policies: Many insurers offer flexible add-ons, such as accidental damage, unoccupied property cover, or higher legal expense limits. Ensure your policy is customised to meet the specific needs of your property portfolio.
Competitive Premiums: While cost should not be the only consideration, it’s important to balance affordable premiums with comprehensive cover. Compare quotes from different providers, but ensure that the policy limits and exclusions are fully understood.
Speak to our Property Owners
Expert Advisor
We understand the importance of having easy and accessible ways to get in touch with us. That’s why we’re excited to offer you a way to connect directly with our Senior Team quickly and conveniently.
Nicola Wyatt
Senior Insurance Practitioner
