Costs

POLICY CHECK SIX:
How are alternative accommodation and loss of rent costs calculated?
These are crucial to a good landlord insurance policy. If your tenants need to be re-housed after specific damage to the property, for example, then the right policy can pay out to compensate you. The total amount paid is normally based on the buildings sum insured – up to 10 per cent is a decent amount to expect. Loss of rent payments – equally important to landlords – are also based on the same buildings sum insured. In general if you don’t get paid rent due to a specific insured incident up to 20 per cent of the buildings figure can be paid to you over a 12 month period.