Typical discount landlord insurance has three components which are buildings cover, contents cover and public liability insurance. Buildings cover provides financial protection against damage to a property resulting from a flood, earthquake, lighting, fire, smoke or other natural disasters. Based on the amount for which your property was insured, the discount landlord insurance will provide you with the funds needed to cover these damages.
It is common for loss of rental income to be a part of buildings cover when the damage to the property is so extensive that the property becomes uninhabitable resulting in the tenants having to move out. It is very important that you file a proper claim to make sure that you get as much funds as possible to fully rebuild your property. Sometimes the money received from discount landlord insurance are not enough the cover the rebuilding costs and all other related costs such are architect fee, site clearance and surveyors.
Contents cover provides financial protection for the loss or damage of possessions within a property. Possessions can become lost or damaged as a result of accidents in the property, theft, or leaking pipes.
Public liability insurance provides protection against tenants or anyone who claims that they or their property has incurred damage as a direct result of your property. These claims may result in high legal costs which can be covered by public liability insurance. Not all providers include public liability insurance as a standard component of their discount landlord insurance and the same level of protection is not offered by all providers. This is why you need to be very careful when purchasing landlord discount insurance. You need to make sure that you check the small print of your policy to know what is covered and to what extent it is covered.
Discount landlord insurance can also include cover for an unoccupied property which means that financial protection against risks to a property has been unoccupied from more than thirty days will be provided. A property may be unoccupied for a number of reasons. The landlord may be between rentals or you may need to renovate. Either way, an empty property is as much at risk as an occupied property.
