Loss of Rent Insurance for Landlords

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.

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.

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.

Does landlord insurance cover loss of rent?

Yes. If something happens to your property, it may not be possible for your tenant to live in the premises, which of course means that you’re likely to lose out on some rent.

You can claim for that loss of rent if your building is uninhabitable as long as the damage or an accident (such as fire, storm, flood or escape of water) is covered by the rest of the policy.

Does Towergate's landlord insurance cover rent?

Yes, loss of rent is included as standard with Towergate landlord insurance.

Just let us know your annual rental income and an idea as to how long it would take to rebuild your property in the most serious of incidents.

Landlords insurance from Towergate

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

See our landlord insurance page, get a landlords insurance quote online or call 0333 060 0915 for more information.

About the author

Alison Wild BCom (Hons), FMAAT, 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 Fellow member of the Association of Accounting Technicians (AAT) and Association of Tax Technicians (ATT) and also has 20 years' experience as a residential landlord.

This is a marketing article by Towergate Insurance. Consistent with our policy when giving comment and advice on a non-specific basis, we cannot assume legal responsibility for the accuracy of any particular statement. In the case of specific problems we recommend that professional advice be sought.