Landlord insurance Ireland
Landlord insurance in Ireland is designed specifically for property owners who rent out residential property. It protects the building, rental income and landlord liability risks associated with letting.
Having landlord insurance in Ireland isn’t compulsory, but it will provide peace of mind, knowing their investment is secure. Every year, properties experience water damage, vehicle strikes, fires or other unexpected catastrophes. Landlord insurance is designed to help you and your business recover from these and continue to thrive.
You may also require landlord insurance in order to take out a buy-to-let mortgage from an Irish lender.
The following is a comprehensive guide to how landlord insurance in Ireland operates, its limits and opportunities and how to choose the right policy provider for you.
What is Landlord Insurance?
Landlord insurance is similar to private home insurance. It protects the property owner’s financial liability in a rental property – covering structural damage, liability risks, and potential loss of rental income.
What Does Landlord Insurance Cover?
Landlord insurance protects the structural integrity of your rental home and limits your financial responsibility for damages to your rental property.
A standard landlord insurance policy in Ireland will cover:
Fire or flood damage: Damage caused by storms and/or other insured events to the physical structure of your rental home.
Unintended damage: To the physical structure of your rental home.
Theft/vandalism: To the physical structure of your rental home.
Integral Fixtures and fittings: That are an part of the rental property (e.g., doors, windows, fitted kitchen & bathrooms).
Landlord liability cover: For injury claims The level of liability cover depends on the insurer and policy terms.
Yes, landlord insurance does cover loss of rent following insured damage that makes the property uninhabitable.. As well as covering the costs of rebuilding or repairing the structure, landlord insurance is designed to cover the loss of rental income that results. The amount of rent covered is limited and usually a percentage of the total value of the insurance policy – often 15% of the building sums insured.
Landlord insurance does not cover the cost of replacing or repairing the tenant’s personal belongings, or normal wear and tear. It is the tenant’s responsibility to ensure they have adequate renters’ insurance to cover their personal possessions.
If a higher level of cover is required, a policyholder can purchase add-ons to tailor their landlord insurance. These include:
Enhanced liability: It’s possible to purchase additional cover for liability against someone being injured on your property.
Legal expenses: If a future tenant dispute is a concern, some landlords choose to take additional legal expenses.
Home emergency cover: Not all providers offer a dedicated emergency service for repairs, so it’s worth considering taking out cover for this. It is particularly useful for landlords who do not live near the property.
Unoccupied property cover: If a property is left unoccupied for an extended period, it triggers exclusions to normal cover. If a landlord suspects that there will be periods when a property is unoccupied, it is useful to purchase extended cover to protect these periods.
Types of Landlord Insurance Policies
Most residential landlords choose between buildings-only cover or a combined buildings and contents policy.
The right option depends on whether the property is let furnished or unfurnished and the level of protection required.
Buildings-only landlord insurance
Buildings-only landlord insurance covers the structure of the property. This includes the walls, roof and floors that form part of the building.
It is typically suitable where a property is let unfurnished, as it protects the building itself but does not cover furniture or appliances. It will protect the building’s structure, providing assurance that, in the event of an accident, fire, or flood, the property will be adequately protected for rebuild or repair.
It is solely focused on protecting the building or apartment as a structural asset.
Buildings & contents landlord insurance
Traditionally, rental properties in Ireland are offered fully furnished. While this trend is changing, many homes still fall into this bracket.
A building and contents landlord insurance policy is designed to protect this section of the market and covers both the structure of the property and furnishings supplied by the landlord as part of the tenancy. It’s a comprehensive policy that fully protects the investment.
It does not cover tenants’ personal belongings – and is generally chosen where a property is let furnished.
Single-Property Vs Portfolio Landlord Insurance
A single landlord may own multiple properties. In this case, it’s useful to take out a blanket policy to cover multiple properties rather than managing multiple individual policies. This is known as portfolio cover and is a common approach for larger landlords. A single policy can cover up to 10 properties. Suitable for landlords owning multiple residential rental properties.
Cost of Insurance For Rental Property Owners
Insurance for rental property owners in Ireland can range from €100 to €800 per property per year. While this is a wide range, it reflects the complexity of rental types. Costs vary depending on property type, tenant profile, and location.
There are many landlord insurance providers in Ireland, each offering a range of tailored insurance solutions. It pays to shop around and compare policies and their specific inclusions and exclusions.
Insurance costs can be reduced by demonstrating that your property is well maintained, that security features such as lighting and alarms are up-to-date and function properly and that the property is occupied by the correct number of tenants.
Landlord Insurance Providers
There are quite a number of independent insurance providers in Ireland offer specialist landlord cover.
They include Allianz Ireland, 123.ie, Out Insurance, Chill Insurance, Redclick Insurance, Zurich, An Post Insurance and Aviva.
Mandatory Insurance Requirements for Landlords
Insurance requirements for landlords vary in Ireland. While Landlord insurance is not compulsory in Ireland, it is strongly advised. Additionally, if you are taking a buy-to-let mortgage from a financial provider, landlord insurance may be a requirement to access finance.
There is a legal requirement to maintain buildings and individual properties, as well as ensuring public liability cover for each property. One way to make sure that the funds will exist in the face of repair after accidental damage is to hold landlord insurance for each property you own.
Loss of rent landlord insurance is also a sensible business cover that many landlords value.
Landlord Insurance for Different Property Types
Insurance needs for a single apartment differ from those needed by the owner of an entire building or a single house. Insurance providers can tailor policies to suit each type of property owner, and the costs and coverage provided vary.
Some property types may require specialist landlord insurance, including:
Student accommodation
Student accommodation is sometimes considered to have different risk factors due to students’ age and transient nature. It generally covers the structure and contents of a rental property, but not the personal possessions of the student tenants.
Short-term holiday lets
These holiday lets generally require a specific insurance policy that is wider than standard landlord insurance. It provides coverage for properties that host multiple tenants for short periods.
Multi-unit properties
If you own many properties, you can take a single policy that will cover multiple units. Each policy is limited to 10 properties.
Landlord Insurance FAQs
Landlord insurance does cover liability for landlords in times of dispute up to a specified limit, but doesn’t necessarily cover specific or defined legal costs. If this is a concern, it is possible to purchase additional add-ons that do include legal costs as a listed item on the policy schedule.
Short-term letting arrangements such as Airbnb aren’t normally covered by standard landlord insurance. For this type of property, you will need a dedicated Airbnb host insurance policy, designed to reflect the multiple short-term tenants that a holiday let hosts.
You can lower the cost of your property insurance by installing a recognised alarm system, demonstrating, by certification or otherwise, that the property is well maintained for electrical or water services, and by keeping doors, access points, and locks in good repair.
Keeping the number of tenants in a property within safe limits also helps reduce costs.
Landlord insurance is a dedicated insurance policy that covers the structure and contents of a rental property. It is designed to protect a business investment and provide assurance that, in the face of damage such as fire, flood or accident, the property can be repaired or replaced. Landlord insurance is held by the owner of the property. Tenants insurance, on the other hand, is designed to cover the personal possessions of a tenant.
