Do I need to get a new landlord building Insurance?

[kai41314]

Hi everyone,

We are going to turn our owner occupied home to an investment property. We currently have a building insurance with our home. Do we need to get a new landlord building Insurance once we lease the property to tenants or we can continue to use the current building insurance? Thanks for any help you can give.


Cheers,
Kai

 

[mattysavager]

Your current building insurance will suffice - however damage caused to the building by tenants will likely not be covered.

Landlord insurance covers loss of rental income, as well as damage to to the property and internal fittings such as carpets, light fixtures etc. It is separate cover to your building insurance.

I know from experience that it's worth having, and I use Terri Scheer and Allianz for my properties, but do your own research.

 

[SeafordSunshine]

Landlord insurance!

Hello,
As Matty said,
your current insurance will sufffice, but I think 'malicious damage coverage' is the coverage you don't get on normal insurance.
That is the one where the tenants punch holes in the walls..
and other stuff....
I hope this helps

 

[Lil Skater]

Landlord insurance is a must!

Your building insurance will suffice, but you will want cover for malicious damage and rental arrears. May also consider public liability if it's not covered in the current insurance.

 

[brettc]

Landlord insurance is a must!

Your building insurance will suffice, but you will want cover for malicious damage and rental arrears. May also consider public liability if it's not covered in the current insurance.

At the very least you MUST advise your current insurer that the property is now going to be tenanted. Should you not do this they may potentially deny a claim (any claim) due to non-disclosure. The risk to the insurer is completely different in a tenanted property and you are likely to need to change the policy, the premium may certainly be affected.

This is not simply due to potential tenant damage and loss of rent etc. (which would not be covered with your current policy), the insurer needs to consider the entire risk including liability etc. It can vary from one insurer to the next on how they will treat it, but certainly advise them and take it from there.

 

[kai41314]

Thanks for all the replies. I really appreciate the effort of all you guys. I will contact my current insurer about the building insurance and also get a separate landlord insurance.

 

[brettc]

Thanks for all the replies. I really appreciate the effort of all you guys. I will contact my current insurer about the building insurance and also get a separate landlord insurance.

You may not need a separate landlord policy, your current insurer may have a landlord policy that includes the building as well, so you can get it all in one. Just take care to check not just the cost but excesses, level of cover etc., as they can vary greatly. What I am referring to is something similar to ourt RentCoverPlatinum policy that includes building, contents and landlords. But "similar" policies are available elsewhere.