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Landlord Insurance  – What You Need to Know as a Landlord in Ireland

As a landlord, it is important to carefully consider your insurance needs and to ensure that you have adequate protection in place, both to protect against possible financial loss and strain and to protect your assets and long-term rental investment. Property insurance for landlords in Ireland is generally referred to as ‘Landlord Insurance’.

What is Landlord Insurance

Landlord insurance is a specific type of insurance cover designed for rental properties and landlords. While various policies in the market will differ, many policies will offer certain protection for landlord-specific risks such as loss of rental income (due to an insured event such as fire ) and liability insurance, in addition to protection cover for the property/building itself.

Is Landlord Insurance compulsory in Ireland?

Whilst landlord insurance is not compulsory as of yet in Ireland, certain mortgage providers may require you to have certain cover, such as Buildings Insurance in place, so you should consult your lending institution for specific requirements as a landlord.

What factors should I consider?

It is always wise to consult an insurance or industry professional on your specific insurance requirements, but in general, many landlord insurance policies will entail:

Buildings Cover – protects the structure of your rental property from partial damage or total loss and generally includes fixtures such as kitchen units and bathroom units.

  • Before taking out cover, you’ll need to know the rebuild cost of your investment property. Online tools such as the House Rebuild Calculator provided by the Society of Chartered Surveyors Ireland (SCSI) can help you estimate the rebuild cost.

Remember that if you already have home insurance in place on your home but have recently decided to rent out your home or property since your last renewal– don’t forget to notify your insurance provider that you are now renting out the property. 

Underinsurance of Residential Properties in Ireland

A key issue for landlords to be aware of when insuring their letting property is the risk of underinsurance. Underinsurance occurs when the sum insured on your insurance policy is less than the rebuild cost of your property. In the event of a claim, having your property uninsured can potentially leave you exposed and liable for a portion of the rebuild or repair costs yourself, from your own funds (depending on the terms and conditions of your policy).

This is because many insurance policies will be subject to what is known as “the average clause,” which allows insurers to reduce the claims amount in proportion to the amount of underinsurance.  For a more detailed overview and examples of underinsurance and tips for avoiding, visit our recent blog on The Silent Risk of Underinsurance.

Public Liability Insurance

Many landlords will ensure that they have public liability cover in place to provide protection in the event of a claim from a tenant or member of the public arising in relation to their rental property; and it is important to discuss this aspect of your insurance cover with your provider to make you are satisfied with your level of cover in this regard. Public liability insurance can provide potential cover when accidents occur on your property either to tenants or members of the public.

Apartment Owners & Public Liability Insurance

If you own an apartment property in Ireland, it is important not to assume that public liability cover is included with the Block Policy of the apartment building, as this is often not the case. As mentioned above, you should always query the level of cover in place with your insurance provided (or management company) and satisfy yourself you have adequate cover in place to protect against unforeseen events.

Loss of Rental Income

Certain policies will offer financial protection against loss of rental income if the letting property becomes uninhabitable due to an insured event (e.g. fire), but is often subject to certain policy limits – again it is prudent to discuss these aspects in detail with your provider so that you fully understand the level of cover you have.

Contents Cover

If your rental property is let to the market fully or partially furnished, you may wish to add contents cover to your policy (which is often not included in your policy as standard and is often an optional extra).

  • After purchasing new items such as dining toom furniture or sofas, you may need to re-evaluate the level of cover needed from time to time.
  • Again, if you own an apartment rental property, Contents Cover will generally be something you need to provide for as a landlord, separate to the block insurance policy already in place for the building.

Benefits of Loss Assessor

In the event that your property suffers damage or total loss, you will have the option to hire a loss assessor to act on your behalf, who will conduct an investigation of the damage and prepare the insurance claim on behalf of you, the policyholder.

  • A professional loss assessor is specially trained in this area and can ensure that all aspects of the claim are fully assessed and taken into account, protecting your interests.
  • The loss assessor will conduct the negotiations on your behalf directly with the insurance company and act as your representative throughout the claims process.

Being a Landlord can be a rewarding venture, but also entails many legal, compliance and financial considerations, which can feel overwhelming at times. The specialist Property Lettings & Management Team at Herbert and Lansdowne are here to guide and advise you through the process, helping you to protect and maximise value from your investment assets and property portfolio.

Herbert & Lansdowne works extensively with Landlords & investors across the Dublin and Irish property markets and also has deep experience and expertise working with overseas landlords.

This article is for general information purposes only and does not constitute legal, tax, or investment advice.

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