Typically, contents insurance for landlords is only necessary where a property is furnished or part-furnished. Landlord insurance can also provide for other eventualities, such as rent protection cover if tenants fail to pay. But generally, insurance does not cover the permanent fixtures within the home.
Now Direct Line for Business has revealed a new “Fixtures and Fittings” insurance that plugs this gap. It is specifically for leasehold landlords and includes internal permanent fixtures that are not covered through the existing buildings insurance
What does the insurance cover?
Bathrooms, fitted kitchens, built-in units, skirting boards and doors all come under the Fixtures and Fittings insurance. It also includes number of floor coverings, such as carpets, tiles and vinyl floors. However, the insurance excludes walls, ceilings, concrete flooring and floorboards, external doors and windows, pipes, cables and services. The freeholder’s buildings insurance should cover this.
The landlord insurance should pay out in the event of fire, theft, flood or escape of water. According to householdquotes.co.uk, the average bathroom suite costs around £1,000, so it’s an expensive item to replace if it gets severely damaged during a tenancy.
Jamie Chaplin, landlord business manager at Direct Line for Business, said: “We are continually evolving our landlord insurance product to meet the needs of customers.
For most people, their property (or properties) are their biggest and most expensive asset. For landlords it is an investment that provides some if not all of their income.
Renting out a property comes with its own set of risks, whether related to the tenant or external events. Normal homeowner insurance doesn’t provide full cover for this. What’s more, many insurers simply won’t cover properties that are rented out with a standard, non-landlord policy. This leaves the owner fully exposed to risk.
Some may baulk at the added expense of comprehensive cover. However, when calculating how much could be lost if the tenant stops paying rent, for example, most will find that it is actually worth the cost.