Landlords Insurance is an insurance policy to cover a property owner from financial losses connected with their property which has been let out to tenants.

What are some of the main types of insurance for landlords?

Buildings Insurance – The structure is insured against most risks for the cost of rebuilding or repairing.

Liability Insurance – Covers you against personal injury claims up to a certain amount.

Contents Insurance – cover for the items inside your property such as chairs, sofas and carpets in case they are damaged or stolen.

What is the Buildings Sum Insured (BSI)?

When getting a Landlord’s Insurance quote in the UK you will usually be asked to give an amount for the Buildings Sum Insured (BSI). This figure is the cost for rebuilding your property if it is damaged irreparably. Don’t confuse this with the market value of the property which is normally much higher than your sum insured. It is of equal importance not to underestimate your Buildings Sum Insured since, should it come to making a claim, your insurers will reduce the amount that they pay you in relation to the amount you have underestimated.

How can I calculate the amount of buildings cover required accurately?

The amount of buildings cover must represent the full cost of rebuilding your property. If you are in the UK and are unsure how much cover you need, check the Association of British Insurers website which will be able to help with a handy calculator.

Why does a traditional home insurance policy not cover my rental property?

A normal home insurance policy may not pay out when the property is being used to make an income. Equally, Landlords Insurance provides additional cover which is not offered through normal home insurance policies.

Can I insure my property even though it is let to students or DSS tenants?

Certain insurance providers can offer cover for a wide range of tenants’ types, so it is worth comparing with providers if this is the type of cover you need.

Can I solely insure the contents of my property?

Again, some companies will offer this service and some won’t, so make sure you are made aware of what types of cover you are offered in the quote you obtain.

To ensure you are fully protected, it is recommended that you obtain a number of quotes from a variety of providers and then purchase a Landlord’s Insurance policy which caters for your specific needs and circumstances.

There are basically three types of title insurances available in the market today. The first one is the buyer’s title insurance which is taken by the buyer and the premiums are also paid by the buyer, to protect the title deed of his property.

The second and most common type of title insurance policy is the lender’s insurance. This is taken by the lender and aims to protect the lenders’ interests in case of any complications. The buyer also has some advantage of a lender’s insurance as he is indirectly helped by protection of the mortgage loan. The premium is paid by the lender.

The third type is the construction loan policy, and covers the cost of construction of a new home as well as the cost of land purchased for the construction. The premiums tend to be quite high in such insurance policies and hence it makes more sense for lenders to avail such policies. They also have contacts with title inspection companies who enter into agreements for verification of title deeds of properties that the lender finances.

The first title insurance company, the Law Property Assurance and Trust Society, was formed in Pennsylvania in 1853. Title insurance is a one time fee and there are no annual premiums related to this, like other insurance policies. Though this happens to be a very important form of insurance and protection, most home owners are unaware of such a type of insurance policy. Contrary to general belief, the cost of title insurance is not too high and the present rates are approximately $3.65 per $1,000 in value. Thus, insuring a $500,000 home would cost a $1,825 one time premium. Title insurance is a good deal because you pay once and it continues to provide complete coverage for as long as you or your heirs own the property.