Landlord Insurance, Better Safe Than Sorry!
Northern Ireland house prices could increase by 4% in 2015, according to a forecast by the Royal Institution of Chartered Surveyors (RICS).
This could mean that a whole new generation is likely to face substantial barriers to owning their own homes.
So what happens next?
The private rental market will face a huge growth spurt. In fact, according to the Royal Institute of British Architects, one in five households will be renting in 2016.
Landlords will, therefore, see an influx of potential tenants coming to market. But that’s great news, isn’t it? Well, only if you’re covered.
While Landlord’s Insurance isn’t a legal requirement in Northern Ireland, going without it could hit you where it hurts most – your bank account!
Consider the following types of Landlord Insurance:
Alternative Accommodation Insurance
If your property becomes uninhabitable due to damage, your insurance could cover for your tenants to temporarily stay elsewhere.
Why do I need it? Your lease may state that you must provide alternative accommodation for your tenants should damage occur. Insurance will mean that you don’t have to take them into your own home or spend money on alternative accommodation.
Building Insurance (Buy-To-Let)
Comprehensive building cover can insure against damage from floods to fires, and everything in between, even accidental damage.
Why do I need it? Safeguard against loss of earnings. If the worst does happen to your property, your tenant can pack up their bags and move onto somewhere else, but good luck trying to find a new tenant if you’re not covered to repair the damage.
Contents Insurance
This will cover any contents you have purchased for the property and declared.
Why do I need it? If your property is even partially furnished, the costs can soon add up. Just a washing machine, fridge/freezer, dishwater and a sofa later and you’ve already exceeded well over £1000.
Landlord’s Liability
This will cover you for any claims made against you for injuries caused by your property, including legal advice and representation.
Why do I need it? Accidents can easily happen in any business, but most accidents happen in the home – pair the two together that’s why liability cover is a good idea. Even if you have all the correct safety measures in place and are certain you’re not at fault, accidents can and do happen!
Loss of Rental Income
If your property is damaged and you are unable to let it for a significant period of time, your insurance could cover you for the loss of earnings in this time period.
Why do I need it? The real question is why would you ever not need it?! It’s your business after all.
Click here to find out more about Landlord Insurance in Northern Ireland.