Is Landlord Emergency Cover Worth It?

The biggest paradox landlords face is to expect the unexpected. From sudden breakdowns to emergency repairs, the challenges can come thick and fast, and often at the least opportune moment.

Having the right protection in place is a great way around these issues - not only does it mean that problems get fixed quickly, but it also means your tenants are safe, comfortable and happy, and that your investment is protected against any unexpected financial strain.

Here, we’re going to talk about landlord emergency cover, explaining what it is, the protection it offers against certain types of emergency, and how it might just be the safety net you need to manage your rental property headache-free.

What is landlord emergency cover?

Landlord home emergency cover is there to give a helping hand when you least expect, but most need it. When problems come up, such as a burst pipe or a heating breakdown in the middle of winter, it means you’re not Googling to find a reliable contractor at the last minute, and you’re not at the mercy of steep repair costs. This type of cover gives you access to approved contractors that are ready to tackle emergencies quickly to keep you and your tenants happy.

Here’s how it works: You make a call, and an approved contractor heads over to your rental property to fix whatever emergency has sprung up. The cover is typically covers up to £500, covering the contractor’s fees, including the work they carry out and any parts or materials needed for the repairs linked to the emergency. It is important to note, however, that landlord insurance cover, terms and conditions varies depending on insurance provider and reference should be made to the policy wording.

Here are the emergencies that are typically covered:

• Heating system breakdowns: Complete failures leaving your property without heating
• Plumbing and drainage issues: Problems that could lead to water damage or loss of water access
• Security issues: Damage to locks and windows that might leave your property vulnerable
• Toilet malfunction: If the property’s only toilet isn’t working, which is more than just an inconvenience
• Power supply loss: When there’s a loss of electricity supply, affecting everything from lights to appliances
• Missing keys: Helps regain access to the property if keys are lost, avoiding lock-out situations
• Vermin infestation: Fast action against pests that pose health risks

Common exclusions can include damage due to wear and tear, issues that are known about before taking out the policy, and problems caused by lack of maintenance

If the emergency turns your rental into a place that's uninhabitable unsafe for your tenants, cover will typically extend for alternative accommodation costs. This means your tenants have a safe spot to stay while things are being sorted, making the situation a little easier for everyone involved. Remember that limits, cover, terms and conditions vary depending on your landlord insurance provider and reference should be made to the policy wordings and schedules.

Landlord emergency cover provides peace of mind for both landlords and tenants, so that if and when the unexpected happens, the impact is as minimal as possible.

What are the benefits of landlord emergency cover?

Having emergency cover in place can take much of the stress away from managing rental properties. Firstly, it's a financial buffer. When things go wrong, like a boiler conking out in the middle of winter, the cover steps in to handle costs up to £500. This means you're not left paying out of your own pocket for emergency fixes. Again, remember to check the limits, cover, terms and conditions for this in your landlord insurance policy wording and schedule.

Then there's the speed of repairs. Got an emergency? A quick call gets an approved contractor on the job, any time, day or night. This isn’t just good news for keeping the property in shape, but it also keeps tenants happy and stress levels down. No more panic searching for a last-minute plumber when disaster strikes.

Lastly, knowing there's a plan in place for those out-of-the-blue problems lets you sleep a bit easier. Not only can you quickly address any issues that crop up, but you’re also looking after your tenants' wellbeing along with your investment. Having coverage in place makes property management easier, allowing you to focus on the other aspects of being a landlord.

Are there any drawbacks to landlord emergency cover?

Landlord emergency cover has its upsides, but let's not skip over the aspects that might reduce the reasons for you to buy it. First up, there's the cost. Adding emergency cover onto your landlord insurance will add extra expense, as emergency cover is not automatically included in landlords policies. For some, this cost may seem unnecessary, especially if emergencies seem unlikely or if the property is new and less prone to issues.

Another aspect to think about is the exclusions within the policy. Not every emergency or repair scenario will be covered. Common exclusions can include damage due to wear and tear, issues that are known about before taking out the policy, and problems caused by lack of maintenance. Knowing the scenarios that aren’t covered is just as important as knowing the ones that are.

Lastly, think about your situation. There are scenarios where emergency cover might not offer the expected value. For properties in excellent condition or for landlords who have a network of reliable and affordable contractors, the benefits of emergency cover might not outweigh its costs. Also, properties left empty for extended periods might not qualify for cover or might require further stipulations, affecting the policy's usefulness.

How much does landlord emergency cover cost compared to out-of-pocket repairs?

Let's talk numbers and see how landlord emergency cover stacks up cost-wise. Generally, adding emergency cover to your insurance policy is an additional expense that needs to be considered.

On one hand, you've got the cost of the cover itself. As part of your insurance premium, it's a regular outgoing, and the exact amount depends on various factors like the size and location of your property, and the level of cover you choose. While it's an added cost, think of it as spreading the potential financial impact of emergencies over time, making it more predictable and manageable.

Now, compare that spread cost against dealing with an emergency without any cover. For example, if a pipe bursts or your boiler gives up unexpectedly. Without emergency cover, you're looking at covering the full cost of call-outs, repairs, or replacements on the spot. These expenses can be very steep, easily running into hundreds, if not more, depending on the severity of the issue.

When you compare the two, the idea is to balance the certainty of paying premiums against the risk and potential high costs of emergency repairs. In many cases, having the cover can save you from nasty financial surprises, especially if an emergency occurs and you need a quick, professional response without the added stress of a hefty bill.

When is landlord emergency cover most beneficial?

Emergency cover tends to be particularly useful in in a number of scenarios. If you've got older properties, you'll likely face more frequent issues like heating breakdowns or plumbing problems simply due to the age of the systems. Emergency cover can help manage these situations more smoothly by covering repair costs.

Properties in areas prone to extreme weather might also see more than their fair share of emergencies, such as storm damage or flooding. In these cases, having a plan in place to quickly address repairs can make a big difference in minimising damage and getting things back to normal.

For landlords with several properties, the benefits of emergency cover are clear. Juggling maintenance and unexpected repairs across multiple places can be overwhelming. Emergency cover offers a way to address problems as they happen, without the added stress of coordinating everything yourself or dealing with the financial impact all at once.

What are the alternatives to landlord emergency cover?

Though landlord emergency cover offers a solution to handling urgent repairs, there are alternatives out there. One option is self-insuring, meaning to set aside a portion of your rental income into a dedicated savings account specifically for emergency repairs. Over time, this fund can grow to provide a financial cushion that you can draw on when needed.

Starting a dedicated repair fund requires discipline and a good understanding of your property's maintenance needs. Start by estimating the annual costs of upkeep and unexpected repairs, then set aside a portion of your monthly rental income to this fund. The advantage here is flexibility and control over the funds, allowing you to manage how and when the money is spent.

The other approach is to build a network of trusted contractors that you can call in an emergency. While this doesn't lower the costs directly, having reliable tradespeople who can quickly respond to issues can reduce the overall impact and cost of emergencies. This requires upfront effort to build relationships and negotiate rates, but it can pay off in efficiency and quality of repairs.

Both of these alternatives to landlord emergency cover offer different benefits. The former offers financial control and potentially saves money in the long term, while the latter focuses on fast, quality repairs. However, both require a more hands-on approach to managing rental property.

Landlord home emergency cover from Towergate

If you’re looking for extra coverage against those unexpected emergencies, landlord emergency cover can be a game-changer, offering quick solutions, financial safety, and peace of mind when managing your rental properties. It's especially useful for older properties, those in risky areas, or if you manage multiple units.

At Towergate, our landlord home emergency cover can be added to an existing landlord insurance policy. When you opt for emergency cover with us, you’re covered against a host of emergency situations and can get urgent help 24 hours a day.

For more information or to add emergency cover to your policy, call us on 0344 892 1664 or request a callback.

Landlord insurance from Towergate

Towergate landlords insurance offers tailored cover options to support landlords in a variety of situations, from property damage to legal issues. See our landlords insurance page for more, get a quote online or call us on 0330 828 0108.

We provide landlord insurance for a wide range of properties and tenants including multi occupancy, students, local authority placements, unoccupied and much more.

Commercial property insurance from Towergate

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About the author

Alison Wild BCom (Hons), MAAT, MATT, Taxation Technician is a highly respected industry professional who has been working with and advising SMEs in areas including tax, pensions, insurance and marketing for over 25 years. She is a member of the Association of Accounting Technicians (AAT) and Association of Tax Technicians (ATT) and also has 20 years' experience as a residential landlord.

The information contained in this article is based on sources that we believe are reliable and should be understood as general information only. It is not intended to be taken as advice with respect to any specific or individual situation and cannot be relied upon as such.