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Insurances for Lettings

  • Tenants must consider insurance for personal possessions.
  • Landlord insurance  is not the same as normal domestic insurance, due to the business and third party risks.
    • The insurance company needs to know their exposure to any risks and any vitiating factors.
  • Buildings insurance, covers the normal bricks and mortar and fixtures and fittings.
  • A specialised landlord policy may cover a combination of such risks.
  • Public Indemnity Insurance PI is for Agents or those offering advice in a professional capacity in consideration for a service.
  • Rent Guarantee is a form of insurance requiring pre-payment of a premium to enable recovery of rent.  In the event of tenant default the insurance company pay the landlord the rent subject to conditions: landlord deposits utilised prior to payout etc..
  • Legal Protection is a form of insurance requiring pre-payment of a premium to enable recovery of legal costs in the event of say being sued.
  • Client Money Protection CMP is an insurance to protect landlords against agent impropriety, provided the agent is a member of the scheme.
  • Deposit Protection can be retained in custody schemes or in insurance backed schemes to ensure tenants are able to recover their deposits in the event of impropriety or fraud.
  • HMRC investigation insurance.  Membership of say the NLA comes with cover in the event of such investigations.  These are becoming more likely without fault, but the cost of evincing compliance is onerous and thus insurable.
Published: 8 November 2013 Last Updated: 17 November 2021