What is Landlords’ Liability Insurance?

In a recent article, we looked at the difference between Landlords’ Insurance and Home Insurance, and why it’s always wise to have an insurance policy that is designed around your specific needs. In this article, we’re going to dig a little deeper and look at one particular aspect of Landlords’ insurance, and that’s Landlords’ Liability Insurance.

What is liability?

Simply put, liability means your legal responsibility for something. For instance, if your house has a broken or uneven doorstep and a visitor trips on it and injures themselves, you are legally responsible, or in other words, liable, for that injury. To take out a liability policy means that you are protecting yourself against that responsibility.

Should your visitor try to claim against you for their injury, a liability policy will protect you from that claim. That’s why most public buildings, such as hotels, restaurants or shops will have what’s known as Public Liability cover, which protects the business against claims made by the public for injury or harm.

What is Landlords’ Liability Insurance?

Landlords’ Liability is a type of insurance cover that is designed to protect landlords against claims made by tenants of, or visitors to, their rental property. It’s different from Public Liability in the way that it’s designed specifically for a landlord and tenant relationship, and to cover the unique risks a landlord faces when letting out properties. Landlords’ Liability is often an optional extra on most Landlords’ Insurance policies.

Let’s imagine you let a two storey property, and the carpet on the stairs comes loose, causing one of your tenants to fall and injure themselves. The tenant is well within their rights to make a claim against you for the injury because the condition of the carpet is your legal responsibility as a landlord and property owner. As a landlord you have a duty to ensure that the property or properties you let out are safe to live in and cause no harm to your tenants.

Why is Landlords’ Liability Insurance needed?

Should an accident unfortunately occur, a liability policy can not only protect you against claims made by tenants but also give you peace of mind. No matter how well-prepared you are, accidents and wear and tear do happen. For landlords, a compensation claim can be very expensive, and as such it can be financially dangerous. A liability policy gives you the knowledge that you’re covered should anything happen, leaving you to get on with the day-to-day running of your business.

Is Landlords’ Insurance compulsory?

Landlords’ Liability Insurance isn’t legally compulsory, however, not only can it keep you safe financially-speaking, it also provides peace of mind.

As a specialist insurer for the over 50s, Insure4Retirement can provide a bespoke insurance policy that is designed specifically for you and your needs. If you’re a landlord, you can find more information about our Landlords’ Insurance and get a quote online here.

Or, if you’re wondering what Landlords’ Insurance you need, why not call our friendly experts for advice? We are always happy to help. Call us on 0800 2988 707 today.