What insurance do I need for a furnished property?

Being a landlord can expose you to risks not covered by standard home insurance – so no matter what kind of property you rent out, it’s sensible to safeguard your investment and protect yourself (and your tenants) from unnecessary hassle.

To protect your asset from risks such as fire and flood, landlords can take out landlord buildings insurance.

If you furnish your property, you may need landlord contents insurance in addition to your buildings insurance to protect the items you supply against fire, theft and other perils, such as escape of water, smoke damage or malicious damage. You can choose the level of cover you need as appropriate.

Contents cover includes furniture, household utensils, kitchen electrical equipment, white goods and soft furnishings, such as lampshades, curtains, blinds and carpets.

While you’re not responsible for your tenants’ contents, there are some advantages to making sure they have the appropriate cover in place.

Some tenants insurance policies include tenants’ liability insurance, which provides a level of protection for your tenants should they cause damage to your property. Without insurance, this would most likely come out of their security deposit and prove inconvenient for you to repair or replace. It could be in your interests as a landlord to check your tenants have purchased insurance cover, which may include some of the following:

  • Damage to the property caused by the tenant allowing the bath or shower to overflow
  • Accidental damage to glass and sanitary fittings fixed as part of your property
  • Replacement locks, keys and locksmith charges in the event of their keys being stolen

Ensuring that your tenants have the best cover in place will not only protect your investment, but also help reduce the risk of a deposit dispute at the end of the tenancy.