Landlord Building Insurance
Building insurance will help to protect your property in the event that it gets damaged. The coverage would include the insurance company rebuilding your property to its standard and size before the accident. This kind of insurance, however, does not cover the replacement of your possessions that may get damaged, including furniture, flooring, carpets, and so on. This insurance will also not cover the damage to the possessions of your tenants.
Landlord building insurance requires an individual approach, which will depend on your particular needs. A common mistake is to assume that this insurance covers any kind of damage to your property. Generally, only some types of damage are covered by default (e.g. fires, storms), while others are not covered (e.g. terrorist acts, or any kind of damage that you may accidentally cause to your building).
However, the events that are covered by your insurance will cover you well. Your policies will generally include the so-called complete replacement cover, which means that the company will repair or rebuild your insured landlord properties with new materials, quality workmanship, and to the same standard and size as your current building. Now, that's a peace of mind.
There are ways to reduce your premium, while maintaining an appropriate level of protection. One of the common ways is to use the re-building cost of your property, rather than its actual market value. You will simply need to ensure that your premiums depend on how much it would cost to rebuild the damaged property rather than the market value of your buildings. The amount in this case will be much lower than the appraised value of your property, making your premiums much lower.
Building Insurance Is A Must
It is important to note that insuring the building of the landlord is often not enough to receive appropriate protection. For instance, if you have furniture on your property, you will need landlord contents insurance. If you have tenants on your property, you will need public liability insurance to cover any unexpected medical expenses. If you have workers on your property, you will also need employer liability insurance.
If there are several co-owners of the property, such as in the case of a few people investing into the same property for vacations or for renting this property out for income, it is important to make sure that the co-owner responsible for insurance has obtained the proper coverage.
If you were not the person responsible for the insurance, you may want to ask your partner to show you the paperwork, in order for you to ensure that this policy properly covers everything you need. It is very important make sure that you are not under-insured, and that you are not overpaying for your insurance.