Renting out a house or apartment feels good. It is a smart way to make money. But being a landlord in Surrey also carries risks. You need to protect your investment. A standard home insurance policy often does not cover these rental risks.
This is why you need special landlord insurance. It protects you when things go wrong with your tenants or the property itself.
What Happens When You Rent Out Your Property?
When you rent a house, your standard home insurance changes. Your policy covers you, the owner, living there. When a tenant moves in, the risk changes. The insurance company sees it as a business arrangement, not just a personal residence.
Protecting Against Financial Loss
Rental income is important. If a serious event happens—like a flood or fire—the home might be unlivable for months. This means you lose all the rent money during repairs. Landlord insurance can cover this loss of income.
Also, think about damage. You need coverage for the actual building structure. This specific protection is a key part of Home Rental Insurance Surrey.
Liability Issues Are Common
Liability is about legal responsibility. A good landlord policy includes liability coverage. This protection pays for legal fees and damages if you are found responsible for someone’s injury. This is necessary protection for your savings and assets.
Differences from Homeowner Insurance
Some landlords think their regular policy is enough. They believe standard Home Owner Insurance in Surrey covers everything. It does not.
A typical homeowner’s policy covers your personal items inside the home. It covers the structure. But once you start collecting rent, the policy’s use changes. You need the extra coverage that specifically addresses tenant issues.
For example, homeowner’s insurance does not cover loss of rental income. It also does not cover damage caused by a tenant’s negligence in the same way. You must tell your insurer that the property is being rented out. If you don’t, they might refuse to pay any claim later.
Conclusion
Owning a rental property is a business. You should protect that business with the right kind of insurance. It covers the building, replaces lost income, and protects you from expensive liability claims. Do not rely on a standard homeowner’s policy when you are renting out your place.
For clear advice on policies that fit your needs as a landlord, you can contact Skyview Insurance Brokers.