Insurance policies which are specifically designed for landlords are often very similar to standard home policies. One area where they differ however is that they will also include provision for ‘loss of rent’. But landlords should be aware that this does not provide cover if your tenant defaults.
Standard home policies and landlords’ policies cover many similar items but differ in one vital aspect: while standard home insurance policies will include ‘alternative accommodation cover’, landlords’ insurance policies will include ‘loss of rent’. However, this is purely provided if rent payments stop because of an insured peril such as a fire or flood. It will not cover a landlord if a tenant defaults on payments.
A different type of policy is need for this: this is typically called a ‘rent guarantee’ policy. You should find out more about obtaining this type of cover by contacting your insurer or broker.
Morgan Clark has worked on behalf of a number of landlords who have suffered a disaster such as a fire or flood in a property they own, and have achieved good settlements for them under the terms of their insurance policies. You can find out more about our services by visiting here.