Letting a Flat, what type of Landlord Insurance?

[98elise]

I'm about to let a flat out, in a purpose built block. The block structure is insured by the freeholder, and the tenant will need to insure their contents.

Do I need to take out additional cover? for example what would happen if say a water leak happened in my flat, and it damaged another flat. I assume this would not be covered by the freeholders insurance?

[Simpo Two]

You have a 'Landlord's Policy'. Not expensive.

[jimmyjam]

Yes, your freeholders buildings insurance covers this, however you need to validate it by telling freeholder and their buildings insurers that the flat is rented.
You should also have your own contents insurance to cover your white goods, carpets, curtains etc. Again, inform them that a tenant is occupying.

[98elise]

Simpo Two said:

You have a 'Landlord's Policy'. Not expensive.

Going through the quote websites they still want to know if its Buildings, or Contents, or both.

Both of those seem to be covered by the Freeholder and Tenant, so how do I insure against any third party risks, or is that covered by the freeholders buildings policy?

Is it that I just need to take out an additional Buildings policy?

[98elise]

jimmyjam said:

Yes, your freeholders buildings insurance covers this, however you need to validate it by telling freeholder and their buildings insurers that the flat is rented.
You should also have your own contents insurance to cover your white goods, carpets, curtains etc. Again, inform them that a tenant is occupying.

Thanks, the block has a lot of rented flats so it should be easy if thats the standard way of doing it.

I did try the selecting buildings insurance, but the next question was the rebuild cost which obviously doesn't apply to a leaseholder.

I want to make sure there are no major uninsured risks, especially in the event of something happening that effects other people in the block such as fire flood etc. I wouldn't want to be liable for 100 peoples hotel bills while the freeholder rebuilt the block

[jimmyjam]

98elise said:

Going through the quote websites they still want to know if its Buildings, or Contents, or both.

Both of those seem to be covered by the Freeholder and Tenant, so how do I insure against any third party risks, or is that covered by the freeholders buildings policy?

Is it that I just need to take out an additional Buildings policy?

No, you cannot take out 2 sets of buildings insurance. Your freeholders buildings insurance will cover the structure of your building and any 3rd party claims related to that. You just need to notify your freeholder that it will be rented and they need to notify the buildings insurers. You need to take out a contents insurance only which will then cover everything. This is only for your contents, not the tenants. They must take out their own insurance to cover their TV etc.
There is landlord insurance which safeguards against non payment of rent and tenants legal claims. I don't find its worth it unless your renting to a risky tenant in which case don't put him in there in the first place

[Simpo Two]

98elise said:

Going through the quote websites they still want to know if its Buildings, or Contents, or both.

Both of those seem to be covered by the Freeholder and Tenant, so how do I insure against any third party risks, or is that covered by the freeholders buildings policy?

Is it that I just need to take out an additional Buildings policy?

I let the house unfurnished so mine is buildings only. If the tenant destroys their own belongings that's up to them!

[jimmyjam]

Simpo Two said:

I let the house unfurnished so mine is buildings only. If the tenant destroys their own belongings that's up to them!

Even unfurnished should still have contents cover assuming you have left behind the fridge, cooker, washing machine, curtains etc.
I've had houses empty between tenancies where they've been broken into and appliances nicked. Obviously though you can reduce the cover to a minimum because the value is much less. I have heard but not 100% that also within your contents insurance there is a degree of 3rd party cover against any claims on your contents causing injury or damage.

[98elise]

jimmyjam said:

98elise said:

Going through the quote websites they still want to know if its Buildings, or Contents, or both.

Both of those seem to be covered by the Freeholder and Tenant, so how do I insure against any third party risks, or is that covered by the freeholders buildings policy?

Is it that I just need to take out an additional Buildings policy?

No, you cannot take out 2 sets of buildings insurance. Your freeholders buildings insurance will cover the structure of your building and any 3rd party claims related to that. You just need to notify your freeholder that it will be rented and they need to notify the buildings insurers. You need to take out a contents insurance only which will then cover everything. This is only for your contents, not the tenants. They must take out their own insurance to cover their TV etc.
There is landlord insurance which safeguards against non payment of rent and tenants legal claims. I don't find its worth it unless your renting to a risky tenant in which case don't put him in there in the first place

Thanks, its really only large risks I want to be sure I'm covered for. There are no contents of any value in the flat, its totally unfurnished. If I wasn't going to rent it out, I would be replacing the carpets and curtains. The tenant is happy for them to stay as they are, as long as they don't have to clean/repair/replace etc when they leave.

[98elise]

Simpo Two said:

98elise said:

Going through the quote websites they still want to know if its Buildings, or Contents, or both.

Both of those seem to be covered by the Freeholder and Tenant, so how do I insure against any third party risks, or is that covered by the freeholders buildings policy?

Is it that I just need to take out an additional Buildings policy?

I let the house unfurnished so mine is buildings only. If the tenant destroys their own belongings that's up to them!

Its easy on a freehold property, as you insure the building, and there is little risk to other properties. In a block of flats you could cause damage to loads of other flats with a leak etc.

[voicey]

I rent out a 2 bed flat in a purpose built block in London - I'm insured with these guys. Cost £70 for the year.

[Simpo Two]

jimmyjam said:

Even unfurnished should still have contents cover assuming you have left behind the fridge, cooker, washing machine, curtains etc.
I've had houses empty between tenancies where they've been broken into and appliances nicked. Obviously though you can reduce the cover to a minimum because the value is much less. I have heard but not 100% that also within your contents insurance there is a degree of 3rd party cover against any claims on your contents causing injury or damage.

Interesting points, and there are washing machine, cooker, fridge and freezer in the house but excluded from the contract. In other words, they're mine and the tenant can use them as a favour, but if they break the favour ends They're all 20 years old and big and heavy so not very nickable...

98elise said:

Its easy on a freehold property, as you insure the building, and there is little risk to other properties. In a block of flats you could cause damage to loads of other flats with a leak etc.

Third party risk, true.