paulry

I'm letting my property out and am thinking of taking all three components of landlord insurance:

1. The property insurance (compulsory if you have a mortgage)
2. Payment protection insurance (optional)
3. Legal expenses insurance (optional)

The thing is it all adds up cost-wise which I've been fine with but recently I've read this article and am thinking again whether it's worth bothering.

Has anyone have any good/bad experiences with landlord insurance? Any recommendations?

Kingseat

Just make sure any policy you have has malicious damage cover. Most don't as it is an add on. You are screwed if a tenant goes on the rampage and you don't have it.

paulry

Thanks Kingseat . My thoughts were to have cover for everything but the link suggests that the insurers give themselves unreasonable room to wriggle out of claims. Will definately study the small print very carefully.

Kingseat

When I first rented out a property I was caught out by not having the additional cover. The place was trashed and the insurance didn't pay out for anything. Cost me about £3,000 to put it all right. Lesson learnt so I always advise people about it.

When we had a second incident when in Australia last year, I made 1 phone call and it was sorted. Insurance were happy to use my builder who arranged everthing. Flat was brand new within 3 weeks.

paulry

It happened to you twice

Looks like we can't afford to be without it. Can you recommend an insurer? Thanks

Kingseat

Mine is in the container! I think it is Aviva from memory!

Kingseat

Yes twice, 8 years apart and different properties. First one was the son of a leading politician. Got involved with drugs and the second one was a young couple whose party on a Saturday night got out of control.

Scotty1

Would agree with the article that the rent payment insurance is a clear candidate for savings. If you employ a half decent agent in the first place you should ensure you get a tenant that pays the rent and does not allow any arrears to build up. Key issue is how much deposit you have and not allowing any arrears to exceed this - ever.
Would agree that malicious damage insurance a good thing too. Wouldn't bother with the legal expenses cover - if you end up in court you are well stuffed cost wise.

paulry

Thanks, I've just tried Aviva and their quote looks good - malicious damage included . Just need to check through the fine print before I sign up with them.

Agreed, the payment insurance is optional for the reason that you've stated. I would think that legal expenses cover is probably necessary though.

paulry

The house has been advertised to let for nearly 3 weeks and we've had 4 viewings so far. Two were yesterday and what a "fun" experience it was too . They had "nightmare tenants" written all over them .

I suppose the EA has little way of knowing up-front the suitabily of it's applicants - especially if they are fresh leads . Giving ourselves the benefit of any doubt and engaging an additional EA on Monday.