Property owner liability insurance
Another critical element of cover is property owner liability insurance coverage. You are protected financially from any claim for injury to person or damage to property that is brought against you by your tenant, a visitor to the property or the public.
For example:
- Your tenant trips and hurts themselves on a loose tile on the bathroom floor that you have failed to repair
- A courier falls on a damaged step outside the property that you have not fixed, and they sue you for the injury caused
Your legal responsibilities as a property owner include:
- Keeping the property safe and free from health-related hazards
- Ensuring that gas and electrical equipment are safe and adequately maintained
- Fitting smoke/ carbon monoxide alarms and testing regularly
- Following appropriate fire safety regulations
Property owner liability insurance covers your legal costs if a tenant makes a claim that you have not met the legal requirements surrounding the safety of the property, even if no injury has occurred.
Other frequently asked questions
Can you get Property Owners’ Insurance for commercial properties?
Property owners’ insurance isn’t just available for landlords who rent out houses, flats and holiday homes. Commercial property owners’ insurance is also available for the likes of office buildings, shops and other commercial properties.
Some properties contain both commercial and residential sections – for example, there may be a flat above a shop. An insurer will be able to bring these two together under one policy, but they will be treated differently in terms of cover.
What is Commercial Property Owners’ Insurance and do I need It?
Commercial property owners’ insurance is a form of landlord insurance relating to commercial rather than residential properties. It is the insurance that the property owner can take out when they plan to rent their building out to tenants for commercial use.
If you are the owner of a commercial property, your tenants are responsible for securing their own insurance to cover the likes of their stock, fixtures and fittings. Commercial property insurance allows you, as the owner, to protect the building against:
- Fire
- Floods
- Storm damage
- Third party claims for injury or personal property damage due to neglect of the building
What type of Property Owner Insurance do I need?
Naturally, this will depend on the types of property you own within your portfolio. An insurer will tailor your property owner insurance policy by taking into consideration:
- The type of property you have, including whether it is a novel building such as a theatre or church
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- The size of the property
- Its location
- Whether you want only buildings cover or contents cover as well
- The level of income you make from it
If your portfolio features both commercial and residential properties, you can ask to cover them under one policy. This is usually possible if they are all owned by the same named person.
As the owner, do I need both Buildings and Contents Insurance?
Your insurance should include buildings cover as this protects the physical property against risks such as adverse weather and fire. Even if you rent out the property to residential or commercial tenants, it is still the landlord’s responsibility to ensure the building is insured. Otherwise, the cost of any repairs will fall entirely upon your shoulders.
Tenants will need to protect their own contents, such as their furniture and technology in a rented home or the stock in a shop. If you, as the owner, have contents of notable valuable held within the building, you may wish to add contents insurance to your policy.
What is Property Owners’ Liability Insurance?
Property owners’ liability insurance is a type of insurance that combines employers’ liability insurance and public liability. This duo of cover protects you should a member of the public, a tenant or an employee become injured or their personal property damaged as a result of your building.
Does Property Owner Insurance cover unoccupied buildings?
Whether it’s a residential or a commercial property, you must be careful about the length of time a building sits unoccupied. Too long and your property owner’s insurance may become void. If you know the building will sit empty for a prolonged period, ask to modify your policy to reflect this.