Insurance for residential landlords
As a home-owner with a spare room or other unused section of your home, you have the ideal opportunity to generate an extra income by renting that space to a lodger. This would make you a live-in or a residential landlord and you could earn up to £7,500 a year tax free with the Rent a Room scheme.
Sharing your home with someone else – especially someone who pays you to reside in your property – can bring with it problems and disputes that can sometimes lead to legal action. In the event of a dispute, you’ll both have your own rights which differ to those of a standard private let.
There are fewer legal requirements with sharing your home than letting a whole property but you may want to have a written agreement for reference in case a disagreement arises (Find a sample document here).
What is landlord in residence insurance?
If you are considering renting out a room or part of your home, it is worth checking with your current home insurance provider as your current policy might not be valid. If the amendment invalidates your standard policy, you may need a specific landlord in residence policy to protect your property.
At constructaquote.com, we offer a landlord in residence insurance policy which can cover your physical property, and contents, if it is damaged by:
- Fire, explosion, lightning and earthquake
- Riot and civil commotion
- Storm or flood
- Impact from a vehicle or animal
- Falling trees, lamp-posts, telegraph poles
- Escape of water
Landlord in residence insurance can cover the cost of damages, whether accidental or naturally occurring. If a fire or flood were to damage your property, it could be costly to repair structural issues.
Disruption caused by repairing structural damage may force your lodger to look for an alternative place to live which could affect your income. This policy can also cover loss of rental income should your lodger have to leave due to the damage caused to the property.
With landlord in residence insurance, the contents that you own and keep in your home are included in the policy too. It can cover a single item up to £5,000 and a combined value of contents up to £7,500.
With another person sharing your property, it is important to consider your responsibilities if they were to be injured in your home. A loose tile or a trailing wire could cause serious injury to your lodger.
As the landlord, and person responsible for property maintenance, you could be liable and your lodger could sue you for negligence. With landlord in residence insurance, you can cover your liability as the property owner.
In the rare event that you need to take action to evict a lodger, you may incur legal fees fighting your case – even if the law is on your side. Up to a £25,000 limit, landlord in residence insurance can cover the legal costs involved in the eviction process, or those incurred if your lodger fails to pay any outstanding money they owe.
Why do I need landlord in residence insurance?
There is no legal requirement to have landlord in residence insurance but it definitely makes sense to consider it. The cost of a monthly insurance premium is likely to be less than the amount payable for making repairs and not having insurance in place. No one expects to make a claim, but having landlord in residence insurance in place, can offer peace of mind and security if the need arises.
How much does landlord in residence insurance cost?
There are a variety of factors which influence the cost of an insurance policy. But, here at constructaquote.com, we aim to help you find the most cost-effective cover for your needs.
The cost of a premium can be influenced by:
- Property type
- Level of policy and optional extras
- Property location
- Background of tenants
- Your insurance history
Want to know more about our landlord in residence insurance? Call our friendly team for free on 08081 68 68 68 or start your online quote below.