Contents: For a landlord insurance policy when an insurer talks about insuring contents they are not talking about the tenants contents. Insuring these is the responsibility of the tenants themselves and can be done through a normal home insurance policy. The contents that you can insure are items that you own in the property but which may become damaged such as carpets, sofas, tables, chairs and pictures if you are renting the property as furnished. Many insurers also insure communal contents which will cover contents such as those names above which are situated in communal areas in blocks of flats, or properties with multiple types of tenants.

Landlord Liability: As a landlord you are responsible for the safety of the property that your tenants are living in. This means that should a tenant harm themselves due to something dangerous in the property they can make a claim against you for damages. For example, a tenant may electrocute themselves on a faulty light switch and badly burn their hand as a result. The Landlord Liability cover will pay for any damages that are awarded to the tenant as well as all legal costs.

Frequently Asked Questions:

Why can’t I buy normal home insurance for a buy to let property?
By renting a property out to a tenant, you are effectively operating as a business, even if the income is very small. For this reason you must purchase business insurance, of which Landlord Liability is a subset. As a landlord you have legal responsibilities towards your tenants in a way that you do not have for your own home. A landlord insurance policy covers you for this.

Can I insure my tenant’s contents on my landlord insurance policy?
No. You can only insure your own contents on your landlord insurance policy; your tenants must take out their own insurance should they wish to protect their contents. The reason for this goes back to one of the principal rules of insurance, which is that the entity that is being insured must be owned or directly effect the person who is taking out the insurance contract. If this rule is not strictly adhered to, the insurance contract can develop a moral hazard and end up more like speculation/gambling.