Landlords Insurance

Fineholm's Guide to Landlords Insurance

Why do I need specific Landlord Building Insurance?

We strongly advise you to get proper landlord insurance before you rent out your property. It’s so important to get good cover to protect yourself against various eventualities that you might not even have considered and although having buildings insurance is mandatory if you have a mortgage a regular policy will not cover you as a landlord.

Would you like to speak to a specialist broker? We recommend speaking to Bruce Stevenson who can offer specialist advice at reasonable rates. Email the team there: fineholm@brucestevenson.co.uk

The Tenemental (Scotland) Act 2004 under Section 18 places a statutory duty on each owner in a tenement to effect and keep in force a contract of insurance against risk for his / her own property and the common property.

This responsibility extends to common areas such as the stairwells, roof, close wall entrances etc.

One of the reasons we would encourage owners to participate in our Landlord Insurance Policy is to ensure that their responsibilities for the common parts/common property and any associated liabilities are protected by insurance. For example, it is often the case that when owners arrange their own property building insurance cover elsewhere, that the cover will be effective over the structure of their dwelling but will not include common property areas such as the roof, close stairwells etc.

Given this statutory responsibility and this liability for common property areas, owners must ensure that in the event that they arrange their own property building insurance this must include for the reinstatement of the common property areas otherwise the owner may be liable for works costs not covered by their insurance cover.

Property Owners Liability Insurance

As mentioned previously, owners must also ensure that they have taken out a Liability Insurance cover. In the event of accidental

a) Injury to any person
b) physical loss of or physical damage to material property
c) obstruction trespass nuisance or interference with any right of way light air or water
d) wrongful arrest detention imprisonment or eviction of any person malicious prosecution or invasion of the right of privacy occurring within the Territorial Limits during the Period of Insurance and arising out of ownership of the Premises the Insurer will indemnify the Insured in respect of all sums which the Insured become legally liable to pay as compensation and claimant’s costs and expenses
The Insurer will also pay Legal Costs and Solicitors’ Fees.

Why do I need Landlords Contents Insurance?

If you are providing furnishings and white goods for the use of prospective tenants, you should insure them against damage. Even if you are not providing a furnished property, you are probably providing carpeting and the like and many building insurers do not consider carpeting to be part of the building but, instead are contents. Another important consideration is in relation to any liability attaching to you as a landlord, including any liabilities associated with the goods and furnishings provided to your tenants.

Would you like to speak to a specialist broker? We recommend speaking to Bruce Stevenson who can offer specialist advice at reasonable rates. Email the team there: fineholm@brucestevenson.co.uk

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