Landlords Liability Insurance – do flat owners need it?

It’s not a legal requirement for landlords to purchase landlords liability insurance for flats but I do so myself and strongly recommend it.

Many landlords make the mistake in thinking that the freeholders insurance will cover their landlords liability. This is rarely the case.

We have all seen the adverts from no win no fee claims companies on the TV with slogans such as “if there is blame there is a claim”. Let me give you some examples of what could go wrong.

• Tenant or even a visitor to the tenants home trips and injures themselves of a carpet you didn’t even know was loose.
• A contractor falls off his ladder whilst working in the property for you and claims it was due to the wet floor
• Tenants property is flood or fire damaged and claims that you should pay for alternative accommodation as well as replacing carpets, curtains etc. even though the accident was their fault

The list goes on.

The other thing that landlords rarely consider is the cost of defending claims. You may well have done nothing wrong but if you find yourself on the wrong end of a No Win No Fee lawyer you may well feel the need to get a lawyer of your own. If you have landlords liability insurance you are covered for that. If not, where is the money going to come from to pay for your legal advice?

I always purchase £10,000 of contents cover, even on unfurnished leasehold properties and bolt landlords liability insurance on to that policy. It’s so cheap it’s not worth taking the risk, I’d rather pay the premiums than risk paying the price if a claim ever did arise. I’ve not had a claim in over 20 years of being a landlord but one big accident claim could wipe me out so I’m not about to take the risk.

Source:  Property118