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Do landlords need to be protected by insurance? We asked industry leaders www.smartlandlord.co.uk the question to put together an answer for you! Well that’s a very good question, which may have a few different answers depending on your view on risk taking. I would say that if you are a sensible kind of person – one who doesn’t take un-necessary risks and someone who doesn’t want to be faced with unexpected expenses then you should definitely take out landlord insurance. It’s the only way you can avoid being out of pocket. Imagine how you would feel if your tenants caused some type of damage to the property, accidentally, but nevertheless damage, which would cost thousands of pounds to put right before you could re-let it. It’s not exactly going to put a smile on your face.
Other landlords may just take out the most basic insurance policy available just to save a few pounds in the short term, but then may be left seriously out of pocket if it doesn’t quite cover a range of different events. Of course, if you aren’t lucky enough to own the property outright but have a mortgage on it, then your lender is going to insist you at least take out building insurance, if only to protect their interest. You’ll be able to save money here if you search online for a better deal instead of taking the policy they offer you, as it’s very unlikely it will be competitive. I would advise any landlord to take out the most comprehensive insurance you can find within your budget. As well as the more basic items, it’s going to cover a larger number of events with a higher level of cover, and may include things such as central heating boiler repair or replacement and even cover you for loss of income if the property remains empty for a number of weeks between tenants. It’s false economy to not purchase it.