Loss of Rent Insurance for Landlords

Loss of rent insurance can cover the financial loss you may incur during a period of not being able to rent out your property. Find out more about how this works and whether it might be right for you.

What is the difference between landlord and standard home insurance?

When it comes to commercial property, you will typically need dedicated landlord insurance to be sure that you are fully covered. There are specific risks you face as a landlord which would not be covered by a traditional home insurance policy and therefore it is important that you take out specialist insurance. 

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What is loss of rent insurance?

If the property you rent out becomes uninhabitable you would lose the income from renting. With landlord insurance, you can be covered for this eventuality under loss of rent insurance. This is one of the main differences between landlord insurance and standard home insurance.

Different policies calculate loss of rent cover differently, so it is worth speaking to your insurance adviser to ensure that your policy is sufficient enough to cover your income in the case of the property becoming uninhabitable.

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Why is loss of rent insurance important?

If your property was destroyed by a fire, for example, there could be a long period of time during the rebuild that you would not be receiving any rental income. During the time when the debris is being cleared, the new build is being planned, the structure is going up and the property is being decorated you will obviously not be able to rent the property out.

You need to be confident that your buildings insurance covers you for the full amount to re-build and that your loss of rent insurance is enough to cover your income for the duration of the rebuild.

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Landlord insurance from Towergate

Having the correct insurance in place as a landlord is crucial due to the specific risks of renting out a property. For more information visit our dedicated landlord insurance page or call us on 0344 892 1384.