Landlord Insurance for rental void periods

Posted under Advice by Alan

A rental void period is when your property stands vacant, and there is no rental income coming in. This could happen when you fail to find a tenant.

It could also be the case when the tenant defaults on rent or the property is damaged by flooding, fire or other natural calamities like lightning, earthquake and storms. To safeguard yourself from this hazard, invest in appropriate landlord insurance. Make sure that compensation for such damages is specified in your policy.

The law does not require you to have landlord insurance, but it would be wise to do so. Approach an insurer who specialises in these types of insurance and get the right cover. A single policy can cover both tenant default cover and loss of rent cover. You can also include buildings and contents cover. This is useful when a tenant either fails to pay rent or violates other obligations, and the landlord needs to use legal steps to evict him or her. The insurance cover should provide for your legal fees.

Insurance companies do not provide cover for certain types of tenant. This could be students, more than one single sharers and people receiving state benefits. Often, rental voids cannot be avoided, but insurance will help against loss of rent due to tenant defaults or serious damage to the property.