Landlord insurance in Cyprus in 2024. A complete guide.
Landlord insurance
If you own property that you rent on a short-term or long-term basis, you need more than a standard homeowners policy to protect your investment.
Landlord insurance includes landlord-specific coverage and protects your rental property in ways home insurance cannot.
This guide will examine property insurance for landlords in Cyprus, when you need it, what it covers, and what you can expect to pay for it.
By the end of this guide, you will know how to find the best landlord insurance in Cyprus and the most affordable contract.
Table of contents
- What is landlord insurance?
- What does landlord insurance cover?
- Landlord liability insurance
- Do I need landlord insurance in Cyprus?
- Homeowners insurance vs landlord insurance
- Who pays building insurance, landlord or tenant?
- Can I have landlord insurance for multiple properties?
- Landlord insurance comparison
- Best landlord insurance Cyprus
- Online landlord insurance in Cyprus
- Cheap landlord insurance in Cyprus
- How much is landlord insurance?
- How to save money on your landlord insurance
- What is the rebuild cost for insurance purposes?
- Landlord insurance in Cyprus quote
What is landlord insurance?
Landlord insurance is designed to protect a landlord’s property and provides dwelling and liability coverage that protects against damages and injuries sustained on the property.
As a landlord, it covers the property and your personal property like standard homeowners insurance.
However, in the event of damage which renders a rental property unusable, you will require the extra cover that standard homeowners insurance cannot provide.
The main difference in terms compared to homeowner insurance is that landlord insurance covers loss of rental income and includes public liability coverage.
What does landlord insurance cover?
Landlord insurance covers the rented home, unattached property structures, and your personal property (but not the tenant’s).
It also includes liability cover and loss of rental income in case your rental property becomes inhabitable due to covered damage.
A landlord property insurance policy typically includes the following coverage.
Dwelling coverage
This portion of landlord insurance covers physical damage to the rental property caused by insured issues such as fire and extreme weather events. It can help pay for repairs.
Other structures coverage
This part of the policy protects detached structures not connected to the property, such as fences, sheds, and garages. If a covered loss damages these structures, this coverage can pay for repairs or replacements.
Personal property coverage
This portion of landlord insurance protects the belongings you leave on-site to maintain the rental property, such as a lawnmower.
Landlord insurance can help to pay for damaged items such as a lawnmower. However, items not used for property maintenance likely won’t be covered.
Exclusions
Landlord insurance typically doesn’t cover the renter’s personal belongings.
For example, if a tenant’s furnishings and possessions get destroyed in a fire, they will need renters insurance to cover their losses.
It’s a good idea to inform your tenant that they are not covered under landlord insurance so they know to insure their belongings.
Landlord insurance typically doesn’t cover household appliance repairs either. The tenant is usually responsible for certain maintenance costs.
Landlord policies also have exclusions and limits, such as:
- Neglect and mould infestation
- Sewer backup and water damage
- Government action and war
- Earth movements, such as earthquakes and mudslides
All landlord insurance coverage is subject to deductibles and limits as stated in a policy.
Your deductible is the amount you’ll contribute toward a covered loss before your landlord insurance goes into effect to payout following a claim.
Each insurance (the coverages above) typically has separate deductibles and limits. The policy limit is the maximum amount your policy will pay after a covered loss.
Depending on your insurance provider, you may be able to set deductibles and limits for each coverage option.
Landlord liability insurance
All standard landlord insurance includes liability coverage. The liability portion of your landlord insurance works to protect you from injury or damage claims from third parties.
It can help cover medical bills or legal expenses following accidents and injuries that occurred on your rental property.
For example, suppose your tenant trips on broken flooring or your gardener injures themselves while working. If the court determines that you neglected to maintain your property which caused the accident, you could be held responsible for medical and legal costs.
In that case, landlord public liability insurance may help pay for any fees up to your policy’s limits. Liability claims typically don’t include a deductible.
Do I need landlord insurance in Cyprus?
Most lenders will encourage you to get it if you have a mortgage or are financing the property.
Furthermore, it’s legally required of you if you rent a property to carry a minimum limit of public liability of €100,000 to get a licence from the CTO (Cyprus Tourism Organization).
Any damage to the property you rent out and legal expenses will be on you without landlord insurance.
Homeowners insurance vs landlord insurance
Homeowner and landlord insurance share a few similarities, but your needs will determine which type of insurance will work for you. We will compare the differences here.
Homeowner insurance for rental property
This type of insurance might suit you if you occasionally rent out your home on a short-term basis. However, you might not be fully protected by a standard home policy.
Most homeowner insurance protects you if you periodically rent out your primary residence.
However, you may need extra protection if you rent your home for extended periods, as standard homeowners insurance provides limited coverage for rental properties.
Note: If you do periodically rent your home on a short-term basis, you should notify your insurance providers, who may need to add a rider to your home policy.
Landlord insurance for rental property
This type of insurance is best suited to long-term rental properties. Landlord insurance can cover you for periods like six months or more.
You may also require landlord insurance for short-term rentals, as most home insurance typically doesn’t cover short-term rentals either.
If you frequently rent out your home, you should ask your insurance provider about short-term rental insurance or landlord insurance.
Summary
Home insurance helps cover your home’s repair or rebuild costs when an insured event, like fire, flood, or burglary, damages it.
Most homeowner policies provide limited coverage for rental properties, which is why additional coverage or landlord insurance is usually necessary.
Landlord Insurance covers everything typically found in homeowners insurance but also includes specific cover suited to landlords and rental properties.
Loss of rent insurance protects your property if it becomes inhabitable and needs repairs, while additional coverage can pay for other damage caused by tenants.
Who pays building insurance, landlord or tenant?
As the property owner, you are responsible for arranging landlord building insurance. In general, landlords usually buy building insurance for commercially rented properties.
However, a landlord can pass the cost of building insurance to the tenant under some commercial lease agreements.
As the property owner, you have an insurable interest in the building.
You will suffer a loss if you are not adequately insured and can benefit from a successful claim, so it works to your advantage to get adequate coverage.
By arranging the insurance, you will have peace of mind that the policy is in force, and you can deal directly with your insurance provider if you face a claim.
Can I have landlord insurance for multiple properties?
Yes. Most landlord insurance providers allow landlords to insure multiple properties under a single multi-property insurance policy.
Not only can this save you time, but it’s often cheaper than taking out separate policies for each property. Having one policy means only one payment and one renewal per year.
If you have an existing landlord policy and are increasing your portfolio of rentals, you can usually take out multiple-property landlord insurance.
Sometimes referred to as portfolio insurance, this insurance usually covers landlords with over three rental properties.
Landlord insurance comparison
When comparing landlord insurance, you will come across all-risk or named perils contracts. It’s important to know the differences between each type of insurance contract.
All-risk contracts have few limitations and cover all risks and perils (that the policy doesn’t specifically exclude). They are also known as open perils contracts or policies.
In comparison, named perils contracts explicitly list the covered risks and perils. These policies only cover the listed events in the agreement; therefore, many perils may be excluded.
For example, a named perils policy that covers fire damage won’t pay for flood damage. In contrast, an all-risk contract may include both perils in one policy under the same coverage.
Landlord insurance quotes
Your needs as a landlord will be assessed by underwriters who will determine the risks of insuring you and your rental property.
Only international underwriters provide all-risk contracts, and companies based in Cyprus work with local and international underwriters.
At Pitsas Insurances, we cooperate with local and international underwriters allowing us to provide you with the best landlord insurance.
Best landlord insurance Cyprus
Pitsas Insurances can help you get the best landlord insurance in Cyprus. If affordable insurance is what you are searching for, we can help you find the cheapest landlord insurance.
Online landlord insurance in Cyprus
You don’t need to visit us physically to buy an insurance contract. Instead, you can visit us online.
Pitsas Insurances provide all insurance services online and you can get free quotations and cheap insurance contracts from us within minutes.
To acquire your contract, you will receive an application form online which you can sign electronically.
After receiving your details, we can work on preparing your quote. If you have any questions throughout the application process, you are welcome to arrange a free online consultation.
If you want to proceed with your quote, you can email us, and we will finalise your contract and send it to you via email.
Cheap landlord insurance in Cyprus
You won’t find cheaper insurance packages in Cyprus than our basic range, which include basic coverages like fire and theft.
Our consultants can analyse your needs free of charge to help you find the right insurance coverages, which is the most critical part of the process.
It’s worth noting that the cheapest contract is sometimes the one that ends up the most costly because it excludes risks likely to occur.
For example, fire, theft and earthquake damage risks must be included in contracts in Cyprus.
How much is landlord insurance?
The cost of landlord insurance depends on what you need from your coverage, but some general factors usually influence the rate of premiums.
The following factors affect the cost of insurance for landlords.
- Monthly rental income cost
- Your previous and current claims history
- The total rebuild cost of the rental property
- The value of insured belongings and contents
- The total built-up area of the property
- Property construction materials (e.g., brickwork)
- Year of construction (or the age of the building)
How to save money on your landlord insurance
Factors that reduce the premium of landlord insurance
Several methods can help you reduce the cost of your insurance. For affordable landlord insurance, consider making the following changes to your rental property.
Property maintenance. Ensuring your property is in good repair and condition will reduce the risk of claims and can lower your insurance costs.
Deductibles/excess. Also known as a deductible, the excess is the amount you contribute to a claim. If you are able to raise your excess, you will lower your premiums.
Annual payments. You can usually reduce your insurance costs by paying annually in one go, as monthly instalments are more expensive.
Combining policies. You can usually get discounts by combining policies with the same insurer. Buying certain coverages together under the same policy can save you money.
What is the rebuild cost for insurance purposes?
Until you need to calculate the rebuild cost of your property to get a landlord insurance quote, you may not know what it is.
We will explain the rebuild cost and how you can calculate it here.
If your rental property was damaged or destroyed beyond repair, the rebuild cost is the amount of money you would need to rebuild the property.
The total rebuild cost can be broken down into two main factors.
- Costs of labour
- Costs of materials
There are two ways to calculate the rebuild cost of your property.
- Costly option. You can hire a chartered surveyor to conduct an accurate assessment.
- Cheap option. You can use your area’s average construction cost per sq.m. in a calculation to estimate the cost.
To calculate the total rebuild cost of your property with the cheap option above, you need to find out the average construction cost per sq.m. in the area where the property is situated.
Once you know what that figure is, you can multiply the total area of your house by the average construction cost. That sum is the reconstruction value of your home (excluding content).
Note: The total rebuild cost is lower than the property’s market value, as it doesn’t account for the cost of the land on which the property is built.
Quote for landlord insurance
Without the correct landlord insurance, you could face financial difficulties alone in the event of theft or damage.
Pitsas Insurances can provide you with customisable landlord insurance packages to protect your investment.
Landlord insurance in Cyprus quote
Home insurance landlords
For more information about landlord insurance, please visit our website.
To get a personalised quote for landlord insurance in Cyprus, complete our questionnaire.
Property insurance landlords
Pitsas Insurances is part of a renowned group of companies, Amazon Group Services.
We work with many civil engineers who are able to calculate an estimated rebuild cost of your rental properties.
Pitsas Insurances Team