What is landlord liability insurance?

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Landlord liability insurance is protection to cover the legal costs if a third party files a claim against the landlord. This type of claim is made when a third party states they have been injured on the property or are injured due to neglect of the landlord. This is similar to public liability insurance other businesses have for this same type of cover from third party claims.

In the UK, landlord liability cover is not mandatory by law. What is required is if a claim is made against a landlord and the magistrate sides with the plaintiff, the costs of the settlement, court fees and legal fees are the responsibility of the landlord to pay.

This type of cover can be included in multi property landlord insurance as one of the add-on for multi landlord insurance also referred to as portfolio insurance.

What does landlord liability insurance cover?

When a third party files a claim with the local civil authority, there will be court costs, legal fees for representation along with compensation to the victim if the case is resolved in favour of the plaintiff. All of these costs are covered with this type of policy.

The types of cases that can be filed include the following but not limited to;

  • A person slips, falls and is injured on your property
  • A person becomes ill due to black mold or other contaminants in the building.List Element
  • A part of the building’s structure gives way and a person becomes injured like a loose handrail
  • A prospective tenant claims discrimination for a unit not been lent to them.
  • The building becomes uninhabitable

What level of landlord liability insurance is required?

At the lower end, there are policies for a landlord that has £2 million worth of cover. The other common levels of cover include £5, £10 and £20 million. The level of cover should be determined by the need of the landlord with the value of the land and property the policy is protecting.

Holding a landlord liability insurance policy is advisable so there is financial protection against the unknown. Without it, the landlord will be financially responsible for any and all settlements along with all associated costs of a claim against them. To assist you there is the quote page landlord where your options can be sent to you for review.

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