Landlord Insurance

Landlords need to stay protected around the clock - whether that’s with emergencies, troublesome tenants, or damage to contents. Keep yourself safe from the dangers with Mashroom’s comprehensive  landlord insurance packages

Home Emergency Insurance

Cover your tenanted property against unforeseen circumstances that make it uninhabitable.

Rent Guarantee Insurance

Even the best tenants can run into problems which make it hard to pay rent. Protect your rent up to £3,000 per month.

Landlords Contents Insurance

Cover your tenanted property against unforeseen circumstances that make it uninhabitable.

Landlords Building Insurance

Protect your rental property against damage to the building structure itself, as well as the contents.

Home Emergency Insurance

Cover your tenanted property against unforeseen circumstances that make it uninhabitable.

Rent Guarantee Insurance

Even the best tenants can run into problems which make it hard to pay rent. Protect your rent up to £3,000 per month.

Landlords Contents Insurance

Cover your tenanted property against unforeseen circumstances that make it uninhabitable.

Landlords Building Insurance

Protect your rental property against damage to the building structure itself, as well as the contents.

Why does a landlord need insurance?

Recent years have seen huge changes for landlords in the UK. There have been lots of rule changes and new regulations to follow in the wake of struggles during the Covid-19 pandemic, making it harder for landlords to guarantee their revenue and protect themselves when issues arise. In line with this, it’s become increasingly apparent that landlords require insurance that’s tailored to their assets and their role in providing homes in the private sector. Not every landlord operates in the same way, so neither should the insurance that’s available. Here at Mashroom, we believe that the best insurance packages offer you flexibility in tandem with effective cover, which is exactly why we’ve developed our insurance products in the way that we have.

If you’re a landlord that’s looking into new insurance options, or a prospective landlord seeking information about the process and the protection that you need, then you’re in the right place – Mashroom’s guide to landlord insurance is here to answer all of your questions and provide you with all of the information you’ll need to make an informed decision. In this guide, we’ll be detailing everything from the process of becoming a landlord, whether intentional or accidentally, all the way through to finding the right policies for the homes that you’ll be renting out to tenants, leaving no stone unturned, to keep you up to speed with everything that you need to know.

To get started on your journey towards becoming a stress-free landlord in the UK, be sure to get in touch with a member of the Mashroom team – we’ve got a wealth of experience at our disposal to help answer your questions and structure your insurance to suit your needs, and we’re always friendly, approachable, and jargon-free too! To get in touch, all you need to do is fill out our handy contact form, or send us an email at info@mashroom.com, where we’ll be able to respond to general information enquiries or questions about our insurance products.

How do you become a landlord?

Before we start, let’s take a look at what exactly it means to be a landlord. Once you know the role you’ll play and the responsibilities that this carries, it’ll become much more obvious what exactly you need to insure yourself against. Whilst many have a predetermined image of what a landlord might be, this is very rarely the case. Whilst in some cases, a landlord may take on this role as a business decision, others may do so out of necessity or circumstance.

There are landlords who invest in multiple properties with the intention of renting these properties out to tenants on fixed or flexible lease terms. For these landlords, this is a full-time job and will be something that they are heavily reliant on in order to live their own lives comfortably. For these landlords, securing rental payments on a regular basis will be of the highest importance due to the impact that this income directly has on their livelihood – this can, in part, be secured using Rent Guarantee Insurance, which is something we’ll explain in more detail later on in our guide.

On the other hand, we have landlords who may have stumbled into the role through circumstance; these landlords often have no prior knowledge of how to function effectively as a landlord and require more support in doing so. An example of this is when a property is inherited by a person after the passing of a loved one. This is an unexpected acquisition, however, it may hold sentimental value that makes it difficult to just sell on. In these situations, we often see the inherited property lived in, with the owner’s current property being rented out to another tenant.

Isn’t it time you ran for (insurance) cover?

Home Emergency Insurance isn’t so much a ‘nice to have’ as a necessity. Get in touch with us today so we can take care of the whole process on your behalf. We’ll cover you in the event of a (very) rainy day.

Home Emergency Insurance

Cover your tenanted property against unforeseen circumstances that make it uninhabitable.

The costs of becoming a landlord

If you’re thinking of entering the housing market as a landlord, one of the most important things that you need to understand is the costs of being a landlord.

Whilst many of these costs are obvious and easy to understand, there are other aspects that are much more intricate, requiring more research and investigation to understand completely.

Below, you can find a review of some of the most common costs that landlords face in their operations, giving you a clearer picture of the kind of infrastructure you’ll need to keep your property functional and profitable.

Property costs

The major costs that you’re likely to incur when starting out as a landlord are for the the properties that you’ll be renting out to tenants – these costs are a necessary part of the process and will need to be put down before any sustained income can be made.

Property costs can be split down into five specific categories, which are:

Mortgage costs
Maintenance costs
Refurbishment costs
Letting agents costs
Insurance costs

Mortgage costs

First of all, your main regular outgoing will be your mortgage cost, which will be billed on a monthly basis as part of your arranged mortgage agreement with the bank.

Unlike a residential mortgage, a buy-to-let mortgage is structured specifically for the purpose of letting out the property as a rental home; you’ll need a larger deposit to secure these properties, but by putting down this larger deposit you’ll be reducing your monthly mortgage repayments significantly.

Mortgage payments are something that you’ll be paying for many years, so it’s important that this is the first cost that you have noted down on your balance sheet. If you don’t keep up with your repayments with the bank, you are at risk of falling into serious debt and may see the property repossessed, so maintaining a perfect mortgage repayment history is vital.

Of course, much of this mortgage payment will be covered by the rental fees that you’ll be charging your tenants, so you should find that it’s relatively easy to manage these payments. The biggest threat here is that of unpaid rent from your tenants, but this is where rent guarantee insurance becomes such an important safety net – you can learn more about Rent Guarantee Insurance by heading over to our guide!

Property maintenance costs

The next ongoing expense that you’ll be looking to deal with is property maintenance – this is different to refurbishment, which we’ll discuss next, and is essentially the money that you’ll need to spend every now and again to fix, repair, and upgrade your property to meet tenant expectations and keep them safe and comfortable in their home.

Maintenance costs can be a frustrating one for landlords, but it’s recommended that you budget on a ‘little and often’ approach, where you’ll put away small amounts each month as a precautionary measure, which means the money is already there when it’s required, rather than having to panic to find the funds in an emergency.

It’s estimated that around £250 per year per property is enough to handle the general maintenance, but this could be much lower or much higher depending on the current state of the property, the usage of certain facilities, and external factors such as environmental impact and location. The types of maintenance that you may need to cover include things such as:

Decorating
Carpet replacement
Exterior repairs (guttering, roof, windows, drains)
Basins, sinks, baths, showers, toilets, and pipework
Water, gas, and electricity
Heating, such as gas fires, wood fires, radiators, electric fires, and fitted heaters

Refurbishment costs

One of the first things you’ll probably be looking to do once your property purchase is complete is the larger renovation and refurbishment that the building is in need of – this is particularly common for properties bought as low-cost investments, as these properties tend to be a little worse for wear and in need of more substantial repairs than just a coat of paint.

The initial cost of refurbishment will be dictated by two major factors: the current state of the building and the size of the property. For smaller properties, you will likely have less to refurbish as there are simply fewer parts of the property in need of repair, whereas larger buildings may require wide-scale renovation that could be incredibly costly.

Of course, the need for renovation will likely have been accounted for within your purchase price, and the money that you could potentially earn through rent payments over the years should massively offset these costs. Once your initial renovations have been completed, it’s important that you don’t become complacent with your property and allow standards to slip; by keeping on top of renovations and ensuring your property is in pristine condition, you’ll be maximising the appeal of the property, which will, in turn, attract higher-quality tenants to live there.

With these reliable, trustworthy tenants in your home, you can feel confident that your rental payments will be made on time each and every month.

Letting agent fees

Finding a tenant can be a tough process. The market has never been more competitive than it is right now, and as a result of that, it’s incredibly difficult to find acceptable tenants to offer your property to.

Of course, there are ways that you can maximise the chance of your property being found by the best tenants, but these often come at a cost to landlords. One of the most common ways to find tenancy applicants for your property is by working with a letting agent – these agents can connect you with a pool of suitable candidates, which you will then be able to meet, review, and, ultimately, select as your tenant should both parties find the terms and conditions of the agreement acceptable.

If you do choose a letting agent to find a tenant for your property, you can expect to have to pay for this service and the cost can vary from agent to agent.

If you’re looking for a way to simplify the process of finding, managing, and reviewing tenants, then our platform here at Mashroom may be the perfect solution. We’ve designed an all-in-one platform for landlords to use for every aspect of their operations, whether that’s finding tenants to view your property, vetting applicants, managing viewings, or simply getting their property listed to more potential candidates.

If you’d like to learn more about our landlord platform and the benefits that you can expect to feel as a user, be sure to get in touch with a member of our team today!

Investing in landlord insurance policies

Perhaps the most important thing you can do as a new or existing landlord is to invest in a comprehensive insurance plan that meets your needs and protects you against the potential issues that can arise as a landlord.

In simple terms, you need to protect your income and your assets, both of which are entirely at the mercy of a third party in a rental agreement – whilst this can be a scary proposition to find yourself in, having the right insurance policy can help to ensure that you’ve got everything you need to deal with whatever comes your way. Whether it’s unpaid rent, home emergencies, or anything in between, the Mashroom team is on hand to offer support, advice, and solutions to any landlord in need, so be sure to give us a call or get in touch online if you have anything you’d like to discuss.

One of our specialities is our tailored landlord insurance plans, which are designed to give landlords the cover they need, when they need it, all at an affordable price. Unlike with comparison sites, Mashroom cuts out the middleman, giving landlords access to our own private deals with no added commission between the lines – this helps you to keep your insurance costs at a minimum without having to sacrifice quality service or cover in the process.

Two of our most important insurance pillars are our Rent Guarantee Insurance and Home Emergency Insurance products. Both are tailored to protect landlords by securing income and covering any urgent emergency repair fees that may pop up at an unexpected time – this not only benefits you as a landlord, but it helps you to provide a better service to your tenant too, so everyone’s a winner.

Excellent service. Respectful & attentive, we are very satisfied! Very valuable advice was given. Thanks!

Allen Panter

What responsibilities does a landlord have?

Understanding the responsibilities that you have as a landlord is something that’ll ensure you’re able to offer the best service to your tenants and avoid legal disputes relating to your property, improving the experience for every person involved in the agreement.

To help out any landlords that are confused about what their responsibilities are, or feel that their tenants are asking too much of them, we’ve put together this handy list of responsibilities that landlords are obliged to fulfil for their tenants. Of course, the responsibilities that you have will be dictated by the wording of your tenancy agreement, so it’s useful to have this to hand any time you’re dealing with a tenant request, as this will give you the grounds to reject their request or give you the assurance that you’re undertaking tasks that are your obligation.

Maintenance

Maintenance is usually something that will be the responsibility of the landlord, as they are the owner of the property. This will tend to include most physical parts of the building itself, as well as the outer grounds such as the yard or the garden, if applicable. If stated in the tenancy agreement, the landlord will not be able to pass this responsibility over to the tenant, nor will they be able to pass over the financial burden; all maintenance and repairs required will be conducted and funded by the landlord, as part of their duties laid out in the tenancy agreement.

Of course, in situations where tenant negligence is apparent, there may be a case to dispute this, but these situations will be reviewed on a case by case basis to ensure that the correct decision is reached, resulting in a fair outcome for all parties involved. A key point when it comes to repairs is that the landlord only becomes liable to take action if they are aware of the issue with the property, so it’s vital that tenants are making their landlord aware of any problems as soon as possible so that they’re able to rectify this as quickly as they can.

If the tenancy in question began on or after 15th January 1989, the landlord will also be responsible for repairs in the common parts of any property that they own – this is mostly relevant in buildings where shared accommodation is occurring, which is also known as an HMO (Houses in Multiple Occupation).

Safety in the property

Another key aspect that landlords will be responsible for is the overall safety of the property that they are offering tenancy in. This will also include the shared and communal areas of any buildings that feature multiple tenants. By law, landlords must ensure that the property is ‘fit for human habitation’, which essentially means that the property poses no danger to the person living there and that safe habitation is not only possible, but encouraged. If a property does not meet the minimum habitation requirements, tenants may need to seek advice from an entity such as the Citizens Advice Bureau, who will be able to assist in ensuring that this issue is resolved as quickly and effectively as possible. A few things that landlords will need to consider as part of their duty to facilitate safe habitation are:

Damp and mould. These pose a serious threat to the health of the occupant and any evidence of mould or damp must be taken into consideration and rectified by the landlord. Failure to do so will likely result in the tenancy agreement being made void, and a potential court case. To avoid these actions being taken, landlords should look to refurbish and renovate these areas as soon as they become aware of the problem.
Climate. If the property frequently becomes too hot and too cold during seasonal climate changes, the property may not meet safe habitation guidelines. By ensuring that the necessary precautions are taken to ensure that a safe climate can be maintained within the property, such as installing new windows and ensuring that heating systems are in full working order, you’ll be able to mitigate these issues arising.
Exceeding maximum capacity. It is the landlord’s duty to ensure that the maximum capacity for their rental property is not exceeded at any point. This may require regular checks on behalf of the landlord, monitoring any activity that may suggest that extra tenants have moved into the property without request or approval.
Infestations. As you’d expect, infestations are a major concern for both tenants and landlords, but the responsibility to handle this will fall to the landlord. If pests such as rats, cockroaches, or mice are found to have made their way into the property, the landlord will be bound by the tenancy agreement signed by both parties to take the necessary actions to resolve this issue.
Water supply. By law, the landlord must ensure that the property that they offer to their tenants has a functional water supply that offers safe, regulated water to the tenants. If this is not the case, the landlord must ensure that actions are taken to implement adequate water supply facilities to the property.

No matter whether the problem existed before the tenant moved into the property or during their tenancy, the issue must still be resolved as a matter of urgency. If a repair is needed, a tenant must inform their landlord immediately. The only instance where the landlord will not be responsible for rectifying an issue that is restricting safe human habitation is in situations where the tenant has caused the issue, either by not looking after the property properly or by doing something that is deemed to be ‘unreasonable’, such as a fire caused by leaving a gas hob on when leaving the property.

Preventing negligence

If a tenant finds themself to be injured or suffering damages as a result of careless or negligent behaviour from their landlord, then the landlord may find themselves in a troublesome situation. Negligence can be evidenced in a number of ways, such as necessary repair work being ignored or refused without cause, or completing repairs to a standard that does not meet the necessary requirements to facilitate safe human habitation.

This can be easily avoided for most landlords by simply paying attention to the requests of the tenant and monitoring the status and condition of the premises on a regular basis, making the repairs as and when they are required.

Nuisance complaints

A landlord can be found to have caused a ‘nuisance’ for a tenant in two different ways. These are:

Private nuisance
Statutory nuisance

A private nuisance occurs when someone or something in another property or in a common area of a building owned by your landlord interferes with your enjoyment of your home. For instance, if your landlord failed to maintain the pipes in your roof space, causing water to leak into your flat, this would be recognised as a ‘private nuisance’. In this instance, a tenant can take action against their landlord, which may accrue further costs in the form of legal expenses and potential damage payments or compensation.

A statutory nuisance is a more serious offence and is related back to safe habitation. If your home is in a state that is deemed to be harmful to your health or safety, your landlord has caused a statutory nuisance’. These situations are often rectified through local authority action from local housing bodies that control the area where the property is located.

Houses of multiple occupation

For properties that are recognised as a HMO, landlords are given further responsibilities on top of those that they have with normal residential properties that they are in control of. In particular, the landlord will need to pay attention to the fire safety and general safety precautions that are in place within the property, as well as water, drainage, gas, waste disposal, and the overall upkeep of the property to ensure that tenants are kept safe, healthy and comfortable.

An HMO is usually recognised as a house that’s divided into separate bedsit rooms with shared facilities, including shared houses, flats, hostels, and even bed and breakfast hotels that accommodate more than one household at a time. With multiple occupants living in the same shared space, the risk associated with the property increases considerably, so it’s important that landlords remain alert, vigilant, and responsive to any issues that are identified by themselves or their tenants.

If you’re a landlord seeking help with tenant disputes, or you’re looking for new tenants to bring into one of your available properties, the Mashroom team is on hand to assist you. We’ll use our market expertise and our handy online landlord platform to make things as easy as possible to manage for you around the clock, removing the stress so that you can manage your properties as efficiently as possible.

Nothing is certain except rent and taxes

Ok, that’s not exactly the quote, but with the help of our Rent Guarantee Insurance experts, it will absolutely ring true. Get in touch with us today to take away all the uncertainty, stress and worry of receiving your rental payments.

Rent Guarantee Insurance

Even the best tenants can run into problems which make it hard to pay rent. Protect your rent up to £3,000 per month.

Landlord Insurance: Why do you need it?

As with any profession where assets are being utilised by another entity, insurance is a vital component that you’ll require as part of your operations. Without insurance in place, the risk that you face is huge, with missed rent and home damages resulting in considerable losses of revenue and additional costs to you as the owner of the property. Whilst these damages or instances of unpaid rent may be unavoidable, even with the best tenants, don’t avoid a comprehensive insurance plan. By investing in an insurance plan that covers you in these circumstances, you ensure that your income is assured at all times – this keeps you and your family safe, even when disaster strikes.

Here are a few reasons why you need to ensure that you’ve got adequate insurance in place as a landlord in the UK.

Tenants may miss their rent payments

There are times as a landlord where things don’t quite go to plan. Whether it’s a recession hitting, the job market crashing, or even a global health crisis, it’s hard to plan for every eventuality.

Of course, if one of these unforeseen events does happen, it may mean that a tenant may miss a rent payment or be unable to make their rent payments in full. In these instances, it’s vital that you know what your options are and how you’ll be able to control the situation in the most productive and professional manner possible. By doing this, you’ll maintain a good relationship with your tenant and ensure that you’re offering the support that your tenant needs during a difficult time.

In many situations where a tenant can no longer afford to make a rent payment in a given month, it’s likely that their circumstances have changed in an instant, from a redundancy to family illness. It’s important to understand your tenant’s reasoning for their rent arrears before taking drastic action – one missed payment does not automatically make your tenant a bad one, but one rash decision could make you a bad landlord.

By having insurance such as Rent Guarantee Insurance in place to cover these situations, you’ll be ensuring that you’re in a place to help understand and support your tenant during this difficult time without losing out on your regular monthly income. This removes the stress and apprehension from the situation and will allow you to do the right thing.

You may need to evict a tenant

However, there are times when your tenant may have repeatedly shown that they are not an adequate tenant for your property and, in these circumstances, eviction is usually the last resort.

Unfortunately, this can be quite a costly, time-consuming, and generally unpleasant process to have to set in motion, especially if you have grown fond of the tenants as people. It’s important to remember that your property is also your business and you need to protect your assets and income, so whilst it may be unpleasant to have to evict a tenant, it will more than likely be necessary to protect yourself and your property.

If you’re evicting your tenant, you’ll then be faced with the costs that come along with the eviction process – from repossession fees to legal costs. These fees can very easily cause a large dent in your revenue for the month. Our landlord insurance policies will ensure that you’re able to remain financially stable during the eviction process, with legal costs and eviction fees covered as part of our service to you. When evicting a tenant, just let us know and we’ll be able to ensure that you know exactly how to proceed using our expert guidance.

Disaster could strike at any time

For landlords, there are lots of disasters that could strike a property, many of which are extremely costly if you have not been able to prepare for them. From environmental events such as storms and hurricanes, to freak accidents such as faulty boilers and blocked water systems, you can never foresee which issues may crop up.

Unfortunately, if these problems do arise, you’ll need to fix them as a matter of urgency, especially if they put the premises in breach of safe human habitation guidelines. Depending on the extent of the damage, you may be facing a huge bill to rectify and repair your property – for example, a falling branch causing structural damage to the roof of the house in which your tenants live.

Instances of structural damage also hold a degree of double jeopardy too, as you’ll not only have to pay to repair the damage, but you’ll also likely be without rental payments during this time, as your tenant won’t be able to live at the property.

If you have not already taken out a Home Emergency Insurance policy, this could be devastating. However, for landlords that have taken out one of our fantastic, comprehensive policies, the costs of this will be covered, or at least far more than they would have been if you were uninsured. In these cases, having the right insurance policy could potentially save you from having to pay thousands of pounds worth of repairs on your property at a moment’s notice.

For those who are curious as to what exactly our policies will cover, and the cost of our insurance policies, you can check our online quote process today! Simply follow the process right here on our website and we’ll be able to deliver a quick quote to you as soon as possible, getting you fully protected in no time at all.

Instances where you may need to use your insurance policy

If you’re still wondering what scenarios you may find yourself in where your insurance could be crucial, don’t worry, we’ve compiled some of the most common problems for landlords and an explanation of how our insurance policies will help to mitigate these issues right here in our guide.

Rental arrears

Rental arrears is perhaps the biggest fear for landlords in the UK. Missed rent will have a huge impact on your monthly revenue stream, and this can often impact your ability to do the things that you intended to do. In recent years, many regulations have been introduced to protect rental tenants, making it much harder to evict due to the protection that they now have.

This was highlighted during the coronavirus pandemic, where tenants were given immunity from evictions, regardless of rent arrears. Whilst this is a gesture that was hugely beneficial to the tenant, landlords have been left in a very difficult situation where they are unable to collect rental payments, but also cannot evict the tenant and replace them with somebody who is able to make payment. For this reason, there has been a large increase in demand for Rent Guarantee Insurance from landlords looking to protect themselves in the future.

With a Rent Guarantee Insurance policy for landlords, your rental income will be guaranteed, whether the tenant makes payment or not. This ensures that you will be able to maintain your revenue stream and your business operations will not be affected by rental arrears from your property.

Legal costs for evictions

As you’d expect with such a lengthy legal process, the costs of evicting one of your existing tenants can be considerable, which is why it’s so important to choose an insurance policy that covers the legal fees associated with removing a tenant from your property.

It’s estimated that the average cost of evicting a tenant in the UK is between £1,300 and £2,000, which is no small fee to have to pay just to reclaim your own property. The price that you ultimately end up having to pay will be, for the most part, dictated by the route that you choose to take. There are two options that you can choose from, which are:

County court Evictions
High Court Evictions

A county court eviction is likely to be your cheapest method of evicting a tenant, however, it is a much slower process that can take a number of weeks in smaller towns, with the average wait time sitting at around 6 weeks. In a large city, on the other hand, you could be looking at a wait of up to 10-12 weeks to evict your tenant from a rental property, with these courts often finding themselves much busier with higher-profile cases.

The costs associated with a county court eviction are as follows:

Serving notice: £99
Possession order: £833
Bailiff who can enforce the possession order: £348

For debts that are less than £600, the county court route is the only available option for eviction. However, disputes for amounts between £600 and £5,000 can be transferred to the High Court, following the use of a country court. Once the rent owed exceeds the amount of £5,000, you will be required to take the case directly to the High Court, due to the high-value nature of your claim.

The costs of a High Court eviction are:

Serving notice: £99
Possession order: £833
Bailiff to enforce the possession order: £1,219

As you can see, the only difference in cost between county court and High Court evictions is the amount that you’ll be obliged to pay the bailiff. This is due to the different bailiffs that are utilised in High Court cases; these are called High Court Enforcement Officers and typically cost between £250 and £300 per hour. During evictions, two bailiffs will be sent to the property to repossess the premises.

Pursuing a tenant

One commonly overlooked cost that landlords often face is the cost of pursuing a tenant to recover rent that is owed – this is a different cost to that of the eviction process and is something that costs you in terms of time, as well as money.

If your tenant has rental arrears that are yet to be paid, the first instinct that you will have is to pursue them in a way that’s clear, effective, and legal. If you are to overstep a boundary when doing this, you may find yourself in trouble due to tight regulations, so it’s important to proceed with caution when dealing with matters of unpaid rent.

Here at Mashroom, we’re looking to make client interactions as simple as possible using our online platform. We’ll assist you in pursuing tenants who have failed to pay their rent on time, ensuring that you are able to receive payment in one way or another. If your tenant still cannot pay their rent following this pursuit, our Rent Guarantee Insurance is the perfect solution to your problems; these packages are essentially your last form of defence to protect your rental income, providing you with a regular rent payment for your property as standard when your tenant fails to pay the money in full. Rent Guarantee Insurance for landlords doesn’t just cover missed rental payments, it covers a number of frustrating fees that you may encounter as a landlord too, so be sure to read up on our Rent Guarantee Insurance (RGI) policies to find out more about the things that are covered as standard as part of our service.

Alternate accommodation

In the event of serious damage or malfunction in your property, you may find that the premises are deemed unfit for human habitation until the necessary repairs are completed to the proper standard. Depending on the amount of damage that needs to be rectified, this could be a long time for your tenants to be without a place to live, but you may be obliged to offer them alternate accommodation until the house is repaired if this is stated in your tenancy agreement.

This is a common clause in most tenancy agreements but is something that is only ever used in extreme circumstances where the property has become uninhabitable, such as during a flood, fire, or environmental damage such as a fallen tree collapsing through the property or a hurricane causing structural damage.

With an obligation to find your tenant adequate accommodation for the period that they’ll be without their home, you may find that you’re about to have to pay an expensive bill on top of what you’re paying for the property repairs. For an uninsured landlord, this could be a devastatingly expensive process that leaves them without any extra cash to fix the property in a timely manner, but for a landlord that’s insured with Mashroom’s landlord insurance policies, there’s nothing to worry about.

What are the different types of insurance for landlords?

There are multiple types of insurance available to landlords, allowing you to tailor your package to suit your needs. Everyone’s circumstances are different, and it’s important that you’ve got an insurance plan that suits you. In our experience with landlords, the best way to relieve stress and remain protected is to weigh up each of the dangers that you could potentially face and compare that to the relatively inconsiderable cost of an insurance plan. Whilst you may be paying a small amount for your different types of insurance each month, this is nothing compared to the astronomical fees and loss of income that you could experience in times of emergency.

Here at Mashroom, we offer landlords effective, comprehensive, and affordable insurance deals. We believe that we’re creating an easier, more enjoyable experience for every landlord that we work with or who uses our platform.

The main types of insurance that we provide to our customers are:

Rent Guarantee Insurance

Rent Guarantee Insurance is something that we’ve frequently mentioned and for good reason too. It’s one of the single most important things that any landlord can invest in if they’re looking to protect their revenue and sustain their income through rental properties.

As with any industry where leasing or renting is involved, the risk of giving out an asset in return for monthly repayments is incredibly high. You’ll always run the risk of failing to receive payment. Whilst it’s unlikely that the house will ever be stolen, there is the chance that your tenant may try to live in the house that you own without paying their rent – it’s become harder and harder to evict tenants over the past decade, so tenants feel that they are in a powerful position when it comes to their living circumstances. This has led to an increase in instances of unpaid rent, resulting in landlords being less secure in their earnings and more fearful of how a missed rent payment could affect their lives.

Guaranteed rent insurance ensures that your rent is still paid each month, whether the tenant makes their payment in full or not. This protects your business and ensures that you do not fall on hard times due to the negligence of your tenant. With Mashroom’s RGI policy, you’ll find a number of benefits that set us apart from other insurers for landlords – here are a few examples of how our service goes above and beyond to support landlords and ensure that everything functions as smoothly as possible each month:

We’ll cover rent arrears up to £3,000 per month, with a cap of £30,000 per year. This high upper limit is sure to cover the full cost of almost any rental property in the UK, ensuring that you don’t lose a penny when your tenant doesn’t pay
With Mashroom, you’ll be able to claim on any instance where payment in full is not received. This is not the case with many other insurers, who deem any attempt to make payment as a form of payment, therefore voiding your claim
Our Rent Guarantee Insurance service is available for just £29 per month if paid as a recurring monthly payment over the course of a 12 month contract, or at a discounted price of £299 for 12 months if paid up-front!
Our legal cover is incredibly comprehensive, keeping you financially stable during legal disputes with your tenants. As standard, we provide cover for up to £25,000 included in our insurance packages for landlords over a 12 month period from your policy start date, giving you ample cover for the entire year, should it be required

Home Emergency Insurance

Our excellent Home Emergency Insurance is designed to help landlords deal with sudden emergency costs in the right way, without being left severely out of pocket as a result. As we all know, an emergency can happen at any time and it’s impossible to predict when, where, or how it might happen. This unpredictability is one of the most damaging aspects of being a landlord, as sudden disasters could completely change everything in terms of your incomings, your outgoings, and your business operations.

Here at Mashroom, we’ve looked to simplify home emergency cover for landlords, giving you the cover you need without the confusing jargon and frustrating limitations. With our comprehensive landlord insurance policy for home emergencies, your rental property is protected and so is your revenue. Our insurance will look to ensure that you’re covered when any emergencies arise, but it’s important to understand that this insurance is specifically designed to cover emergencies, not just general maintenance or wear and tear. Things that are deemed to be an emergency are events or instances that directly diminish the quality of habitation in the household:

A broken boiler
Failure in the plumbing or gas
Long-term electricity outage

These are all crucial to the health and safety of your tenants, meaning our emergency cover will be there to look after the costs.

If an emergency makes your property uninhabitable for your tenant, our home emergency cover will cover the cost of alternative accommodation for your tenants up to a cost of £100 per renter per night. This ensures that your tenants are safe and sound whilst you look to arrange for the necessary repairs to be made to the property.

Before you can purchase one of our fantastic insurance policies here at Mashroom, you’ll first need to obtain a quote from our team. This can be done right here on our website; all you’ll need to do is provide us with the relevant details about the property and the belongings that you’ll be looking to cover, and we’ll get back to you as soon as possible with a quote to insure this for you! Once you’ve received your quote and you’re ready to process it, all you’ll need to do is purchase your policy and select the date that you’d like your cover to start from, it really is that simple! Just like with our Home Emergency Insurance and Rent Guarantee Insurance policies, all the documents for your policy will be stored in your Mashroom account and you can access these at any time should you need to view them.

To make a claim, just follow the instructions within the Mashroom online portal and you’ll be given guidance and assistance wherever you might need it. If you have any questions regarding our policies and our online platform, don’t hesitate to get in touch with us by filling out our contact form or by giving us an email at info@mashroom.com!

Landlord Contents Insurance

An insurance policy that protects the belongings within a property is known as contents insurance; this is a very different process to insuring the property itself, as the physical structure is not insured as part of contents insurance. Contents insurance covers everything that the building contains, which can be a number of different household items. Of course, one of the largest points of contention within a rented property is who is responsible for insuring the items within the property; some items will belong to the landlord as part of the property, whereas others will belong to the tenant. Landlord Contents Insurance is specifically designed to keep the belongings of the landlord protected during a tenant’s time living in the property – this will usually be items such as furniture, utilities such as washing machines, and fittings such as carpets.

A Landlord Content Insurance policy will cover and, if needed, pay out the cost of repairing or replacing and items belonging to the landlord that are damaged during a period of occupancy. This essentially means that you’ll be covered in the event that your furnishings or items are damaged, either accidentally or with intent. In the UK, Landlord Contents Insurance is not a legal requirement, which means it is a totally optional extra, however, due to the low cost and high number of benefits, it’s always something that you should consider adding to your cover plan. If you’re planning to supply the house as ‘furnished’, then we’d recommend that you take out a Landlord Contents Insurance plan, as the risk of damage being caused to your items is massively increased in these circumstances.

If you’d like to discuss the availability of Landlord Contents Insurance or would like to discuss the options available, please get in touch with a member of the Mashroom team today!

Landlord Buildings Insurance

Whilst contents insurance may not be a legal requirement, Landlord Buildings Insurance certainly is. This is a fundamental level of protection that is required to ensure that both the property and the tenant is protected from major issues during their occupancy. This type of insurance will not cover any of the items within the property, but instead will look to cover any damage or issues relating to the physical structure and facilities of the property, such as the walls, roof, boiler, pipework, and plumbing – these can be caused by a number of different events, such as fires, floods, storms, or malicious attacks on the property.

As a landlord, your responsibilities are huge, as is your level of potential liability, so it’s vital to ensure that you’ve prepared yourself and your property with the right types of insurance. By investing in these policies, you create a safe, solid foundation from which to operate as a landlord, protecting both yourself and your tenants in the long run. Landlord Buildings Insurance policies are designed to deal with the most costly of issues that could arise during your time as a landlord – these issues are also commonly the most dangerous too, potentially putting tenants at risk if they are not fixed promptly and professionally. As you’d imagine, these repairs can be expensive and time-consuming, which can often leave tenants in a precarious position regarding their living situation. In these circumstances, a Landlord Buildings Insurance policy will cover the cost of alternate accommodation during the time that the property is inhabitable.

In many cases, you may also notice that public liability will be included within your Landlord Buildings Insurance; this is to cover you in instances where you may be the subject of legal action brought on by injury to a tenant, or damage to another property. This may sound far fetched, however, it is surprisingly common for this to occur, with events as small as a burst pipe having the potential to cause major damage to neighbouring properties, which can lead to large costs for repair if you aren’t covered with the right insurance policies.

The team here at Mashroom can help to guide you in the right direction and find the perfect insurance plans for your needs, so be sure to get in touch with us today if you’re looking to invest in a comprehensive Landlord Buildings Insurance plan!

Are you content with your contents insurance?

You can’t make sure your tenants look after the contents of your property, but you can make sure you’re protected if they don’t. Get in touch with us today to register your interest for this product - coming soon!

Landlord Contents Insurance

Cover the cost of repairing and replacing items in a property occupied by tenants.

Still have questions? We have answers.

Insurance policies can be really tough to understand, especially when it comes to the finer details, and this can often lead to landlords failing to utilise the cover that they pay for. To ensure that landlords have all the information they need to be able to confidently claim and protect themselves using the landlord insurance policies that we offer here at Mashroom, we’ve collated a list of the biggest questions asked by landlords and presented these to our expert insurance team. You can find their helpful responses to these FAQs below, but please get in touch with us if you have any other questions that aren’t answered on this page!

Will I still be covered by Rent Guarantee Insurance if I change my tenant?

If your tenant changes during your RGI cover period, your policy can continue as normal, but your new tenant must be successfully referenced in accordance with our strict tenant referencing criteria. Our referencing criteria is as follows:

A credit check against the tenant and any guarantor, obtained from a licenced credit referencing company showing:
No County Court Judgments in the past 3 years.
1. No outstanding County Court Judgments.
2. The tenant’s financial ability to meet the rent commitment, or the guarantor’s financial ability to meet the rent commitment if applicable.
3. That it is appropriate in the circumstances following receipt of the outcome of the credit check to grant a tenancy agreement to the tenant.
Copies of two forms of identification, one of which must contain a photograph where the tenant is an individual.

How many tenants will be covered by Rent Guarantee Insurance?

Mashroom’s policy operates on a per-tenancy-agreement basis. This means that if two tenants are living together under a single tenancy agreement then the landlord would need to purchase one single annual premium. If the landlord owned a property that was converted into two apartments, for example, with two separate tenancy agreements applying, then two separate annual premiums would be charged.

Does Rent Guarantee Insurance cover HMOs?

HMOs can be covered and would operate on a per-tenancy-agreement basis as outlined in the above question. As with any tenant, HMOs would also need to fulfil the tenancy referencing criteria that every tenant must be judged by, which is specified within the policy wording of all of our insurance policies.

I already have a tenant living in my property - can I take out Rent Guarantee Insurance for an active tenancy?

Yes, you will be able to take out a policy for an existing tenancy, but the tenant will still need to be successfully referenced in accordance with the tenant referencing criteria that are set out on this page and in the policy wording for our insurance products.

Please note that the policy includes a qualifying period where there is no cover for an event that occurs within the first 90 days of the first period of insurance if the tenancy agreement commenced before the tenant reference was obtained. This exclusion will not apply if you are able to prove that you had continuous equivalent cover with another insurer for the same tenancy agreement and tenant with no claims notified under that insurance.

Please refer to General Exclusions 18 in your insurance policy wording document for more information on the exclusions that may apply.

How many tenants do I need to insure on the Rent Guarantee Insurance policy?

Your Rent Guarantee Insurance policy will cover all of the tenants living at the property who are listed on the tenancy agreement. If a person is living in the property without consent and is not named on the tenancy agreement, then this will not be covered as part of your agreement with Mashroom.

What is the turnaround time for a contractor to visit the property once an emergency has been reported?

Whilst the response time for each incident may vary based on each individual circumstance that we encounter, our partnered contractors will look to visit the property and repair any problems in the quickest timeframe possible. Depending on the severity of the issue and the danger that it poses, the urgency in which the matter is dealt with will be adjusted. For example, loss of heating claims may be responded to within 24 hours; however, a high-risk claim such as an escape of water will ideally be visited within 4 hours of the report. As a home emergency policy provider, it is imperative that we work as quickly as possible to rectify any dangers to tenants as soon as possible, so if an issue has been identified, please notify us urgently.

What happens if the emergency costs more than £1000 as per the maximum allowed - does the landlord pay the extra on top?

If the costs of an emergency claim exceed the maximum cover amount that is outlined within the policy agreement, the landlord will need to fund the rest of the repairs for this emergency.

Does the landlord have to provide their boiler make and model so if a part is required to purchase they know which boiler it is?

When making a claim on your boiler, you may need to provide your make and model number to ensure that the correct parts are secured; however, this will not be an immediate requirement and you will be able to submit your claim without having this information to hand. This information may be required later in your claim, however, so if you can have this information ready that will save you time further down the road.

Are contractors available on weekends to come out?

Our helpline and emergency support are available around the clock, 24/7, 365 days a year, giving you unlimited access to the support that you and your tenants need whenever it’s required. Once in contact with our team, you’ll be given a timescale for emergency repairs to be carried out within, however, this may not always be achievable due to factors such as weather, traffic, and excessive demand. We will let you and your tenant know of any delays as soon as possible, but if a threat of injury or damage to the property is identified, you should contact the emergency services immediately.

Will a claim affect the following years premium, or can they take it out again at renewal for the same cost?

It’s natural to worry about claims having an impact on your renewal price, as this is something that can happen in other divisions of insurance such as with cars, however with Mashroom’s home emergency cover, you won’t be faced with a frightening premium for renewing your policy if you’ve had to make a claim. Our pricing will not be impacted by individual claims.

Are there any exceptions to the cover e.g.: the size of the property, number of radiators, age of the boiler, etc.?

Whilst there is a requirement for a boiler to be serviced annually in order to remain covered by our policy, there are no other exclusions when it comes to the size of a property, the number of heaters, or the age of the boiler that’s being used. By keeping the boiler in your property regularly maintained and assessed, you can ensure that our boiler cover remains active and that you’ll be able to claim for broken parts should the boiler ever start to malfunction.

How are the contractors sourced?

The contractors used for our repairs are sourced by our CPA claims supplier. As part of their process for selecting trusted contractors to complete repairs, each contractor is vetted and audited before they’re able to take on any work.

Does the cover work for HMOs, or are there restrictions on the number of tenants, the size of the property, etc.?

So long as the HMO is deemed to be a standard property, our home emergency insurance will be applicable to HMOs. There will be no restriction on the number of tenants or the size of the property as part of this, other than the restrictions set out in the safe human habitation guidelines.

If a landlord uses their own contractor to do the job, will home emergency insurance reimburse the costs for this?

All work that is carried out as part of our cover must be conducted by one of our approved contractors. Any work completed by another contractor will not be covered by our policy and the landlord will have to pay the full cost of this work themselves. Costs are only reimbursed for contractors that are instructed to carry out the work by Mashroom and our partners.

What evidence do you require from the landlords to show that their boiler has been serviced annually?

To ensure that your boiler meets our criteria for cover, we must be able to see evidence that the boiler has been regularly serviced within the correct timeframe. To evidence a service, we will need you to request a receipt from the gas service engineer who conducted the service, with no other form of documentation accepted as evidence of service.

What is the procedure for removing pests?

Any pest removal procedures that are carried out as part of our cover will be completely guided by the expertise of our partnered pest contractor assigned to the job. As an industry expert, our pest control partner will be trusted to select the most effective method of removal for all pests. As with our other contractors, our pest removal experts will have been vetted and audited to ensure that their service meets the required standards.

What does Landlord Contents Insurance cover?

In general, there are a few things that every policy covers, with a few additional things included with certain providers. Here are some of the things that you can expect your policy to cover:

Your furniture, including sofas, beds, and wardrobes
Kitchen appliances including your oven, sink, or fridge
Any soft furnishings such as curtains
Carpets throughout the property
Any artwork such as paintings and pictures
The light fixtures found on the walls, on the ceiling, or under kitchen cabinets
Your garden and any garden furniture/items

What will your Landlord Contents Insurance policy cover you against?

There are lots of different scenarios that you may encounter where you query whether your policy will cover you or not. To assist you in making the call, here are some of the most common use cases for this type of cover:

Loss of rent due to property damage
Theft by tenants
Intentional damage by tenants
Loss of metered water
Glass and lock damage
Escape of water
Alternative accommodation
Accidental damage
Storm damage
New for old replacements, value cap may be applicable

If you have any questions regarding the events that are covered by your policy, please get in touch with a member of our team.

What isn’t covered by a LCI policy?

There are certain circumstances where a Landlord Contents Insurance policy will not cover the damage or issue that has arisen. Examples of these situations are:

Damage caused by the escape of water in an unoccupied property
Damage, loss, and theft in an unoccupied property
Items of considerable value, such as electronics or expensive works of art
Damage caused by unreferenced tenants
Damage, theft, or loss caused by any illegal activity
General wear and tear

Do you need a Contents Insurance plan if you’re renting out an unfurnished property?

Whilst it may seem like this type of insurance isn’t needed when a property is unfurnished, this is not always the case. Whilst there will be a lack of items belonging to the landlord in the property, there may still be a few fundamental items such as carpets, curtains, dishwashers, and washing machines, which are all liable to damage, loss, and theft during the course of a tenancy agreements.

Does a landlord need to insure the tenant’s contents?

No, tenants contents do not need to be covered by the landlord. If a tenant would like to take out their own contents insurance policy, they are free to do so, and this should be encouraged for both parties. At Mashroom, we’re able to provide comprehensive cover for tenants contents, protecting their belongings against theft, loss, and damage during their rental period.

Why is Landlord Buildings Insurance important?

Landlords Building Insurance is designed to cover the costs of rebuilding or repairing your property if damage ever occurs. This can include many different types of events, such as fire, flooding, storms, or even vandalism. Most policies will cover the cost of rebuilding and repairs up to a specific amount, so it’s important to ensure that you choose a policy the offers the right level of cover for the value of the property that you will be renting to tenants.

What does Landlord Buildings Insurance cover?

Your Landlord Buildings Insurance policy will cover a wide range of different types of damage that could occur on your property. These can include intentional tenant damage, accidental damage, or even environmental damage. Here are some of the instances that will be covered:

Fire damage
Storms
Explosions
Collions or impact
Falling trees
Earthquakes
Theft, using force
Subsidence (landslides)
Ground heave
Riots or civil commotion
Flooding
Malicious acts such as vandalism
Oil leaks and water escapes

As you can see, there are many ways that damage can occur, so it’s important to stay vigilant and protected as best as possible.

What won’t be covered?

As with any policy, there are instances where you will not be covered; don’t worry, as these instances are very rare and if you’ve followed the proper processes as a landlord, you’ll probably be covered. Things that won’t be covered are:

General wear and tear
Frost damage
Vermin damage

For specific exclusions relating to your insurance policy, be sure to check your policy wording and chat to your insurer for clarity.

Is Landlord Buildings Insurance a legal requirement?

No, LBI is not a legal requirement in the UK and landlords may opt to proceed without this type of cover. Of course, this does heighten the risk considerably and may leave the landlord exposed to huge potential costs should any damage occur. If your buy-to-let property is funded by a mortgage, you may find that Buildings Insurance is a requirement as part of the mortgage terms – this is a standard stipulation that ensures the property is properly insured, protecting the lender’s investment.

Building the right policy for you

Every good building starts with solid foundations, and every good Building Insurance policy is the same. To make sure you’re covered in all the right places (and there aren’t any cracks that could leave you worse off), get in touch with us today to register your interest - product coming soon!

Landlords Building Insurance

Cover against damage to the building itself and and any fixtures or furnishings provided in a rental property.