Hi, my name is Lorna, and I’m and advisor for Towergate.
In this video I’m going to talk about the different types of tenants recognised by your landlord insurance.
People today rent for many different reasons:
They may be saving for a deposit on a mortgage or could be new to the area. They could be a student or renting a second property and some people simply don’t want the commitment of buying.
Whatever the reasons tenants fall into different categories stipulated in your landlord insurance and it’s important you understand who your policy covers to rent to and why these groups pose different risks.
Landlord insurance for professionals
This is the umbrella term for anyone you rent to who is in employment. In terms of risk these are the people who have a regular income and are therefore considered to be low risk in falling behind with rent payments.
Landlord insurance for students
Whilst no two students’ situations are the same the general assumption is that young students who have low wages and only part-time employment may have more difficulty in making rent payments consistently. Some policies will automatically cover landlord insurance for students.
Landlord insurance for DSS tenants
Tenants who are on housing benefits, meaning they claim benefit money to pay their rent face a similar discrimination as students. Some insurers will not cover you to rent to these two groups which means you may have to shop around for the best landlord insurance for DSS tenants. Make sure you’re aware what your policy permits as a mistake could invalidate your policy.
Landlord insurance for Lodgers
Lodger are tenants who live in your house with you - in a spare room for example. In some cases, having lodgers does not class you as a landlord and can be covered by having the arrangement noted on your standard home insurance, rather than taking out specific landlord insurance. But make sure you speak with your insurer before you assume you’re covered.
Landlord insurance for family members
A common question from new landlords is “Do I need landlord insurance if renting to a family member?”. Renting to a family member doesn’t always make you a landlord in terms of your insurance. If they stay there without a rental agreement a standard home policy may be sufficient. This can differ between landlord insurance policies though so make sure you check with your provider.
Towergate’s landlord insurance policies allow you to dictate who you rent to whether they be family, students or professionals and can remain flexible should that tenant group change but in order to remain protected it’s important you understand what you are covered for at any one time.
For more information on landlord insurance browse our site or give us a call.