If you own a flat or apartment within a block and pay an administration fee to the outright owner of the building, you will get standard buildings insurance: this will not insure you as the owner.
Homeowners insurance is widely available to homeowners who insure their residential rental properties; however, if you own an apartment within a block, your administration fee will only cover brick and mortar insurance, a standard policy. Owners need to make sure they cover their legal liabilities.
Policies are available to cover this situation, although they are not widely advertised. Public liability, property owner liability, landlords liability, and employers/businessmen liability are all things landlords should consider as a separate issue if you are an apartment owner. As stated, the administration fee paid to the building’s freehold owner will only include standard buildings insurance and will not cover legal liabilities of owners or public liabilities.
If there are carpeting and appliances installed in the apartment, you may want to cover those as well, many home fires caused by faulty appliances, and this is where the legal responsibilities of landlords, both to the tenant and to the public. featured again.
A renter should have a policy to cover their own belongings, and the landlord should have insurance to cover theirs, but it is essential that legal responsibilities and the landlord’s duty of care are not overlooked. A tenant is likely to invite guests to his house; the owner is also responsible for your safety as it relates to owner-provided furnishings and the property itself, you may use a plumber or electrician to perform maintenance on the property, the owner is again responsible for the safety of these merchants while they are on site.
Owners must have insurance against:
all dangers – These are Fire, Storm, Flood, Subsidence, Uplift, Landslide, Water/oil release, etc. These are pretty standard on most policies and will be on the standard policy provided by the management company.
Landlord Liability Protection – £2 million (on average) to cover the legal liabilities of the landlord towards the tenant and the public – this is what will NOT be included in the standard policy provided by the management company. This is vital coverage.
Accidental and malicious damage caused by tenants – this is optional, but worth considering when a tenant is new or a tenant who is known for not caring for the property to the best of standards. Owners may want to consider this as a simple precaution.
Rent guarantee and squatter eviction – This is also a good consideration for new tenants, or as a simple precaution.