Rental Property Insurance Explained

Whether you’re a new or more experienced landlord, getting the right rental property insurance will protect your financial interests and the properties you own. When you first get the keys to your rental property, it can feel overwhelming with a long to-do list of priorities. 

According to recent research, there are 47.7 million private rental homes in Europe, with the number growing every year. In Malta, reports reveal there were around 47,879 private rental properties in 2022.

As Malta becomes ever more popular, it seems like a good time for property owners to consider the best landlord insurance options for their individual situation. If you’re looking for rental property insurance explained, exploring key issues around the topic can help you gain clarity. 

Here, we take a look at what is property insurance and answer questions, such as what is unoccupied property insurance to help you make the right property insurance choices.

Contents

• Rental property insurance explained. 
• Do I need rental property insurance?
• Protective rental property insurance with GasanMamo. 

Rental property insurance explained

If you own a property and let it to tenants, then this is a rental property. You have a range of responsibilities as a landlord of a rental property, including making sure there is adequate insurance coverage to keep the property and its tenants safe. 

This type of insurance provides cover against the risk of loss, damage or injury suffered by a tenant as a result of your property. Landlords generally need this coverage as a requirement of their mortgage lender in regard to rental properties. Unoccupied property insurance, on the other hand, protects properties that are uninhabited for a prolonged period of time.

Rental property insurance, like all other insurance policies, has slightly different components depending on which company you select. But there are similarities with most rental property insurance policies, such as:

• Rental income loss protection if the property is uninhabitable due to a covered event like a fire or storm. 
• Structural property damage cover protects when there’s an issue due to fires or flooding. 
• Legal expenses can be provided in the event of a legal dispute, such as eviction proceedings. 
• Contents insurance to replace or repair any belongings that are damaged at the property. 

Your selected rental property insurance provider will be able to take you through a policy that suits your needs and supports the protection of your property. It’s a good idea to research insurance providers and make sure you choose a reputable company that has experience in supporting landlords with comprehensive property insurance. 

Do I need rental property insurance?

With a rental property, home insurance is likely not valid for the adequate protection of both the premises and the tenants’ safety. Plus, if your tenants leave unexpectedly, you could be out of pocket by a significant amount. 

Always check your mortgage terms as these will specify the type of insurance you need for your rental property to ensure your mortgage is not invalidated in any way. Managing and reducing your risk as a landlord is sensible to secure your investment for the future. 

Here are four reasons why you might need rental property insurance:

1. Water leakage

Leaks and burst water pipes may cost thousands of euros to fix in Malta. Even a slight fracture to a pipe could result in the loss of large volumes of water. This can seriously impact your property and lead to a spiralling bill for repairs. Landlords who have rental property insurance can claim for flooding or water damage to help mitigate costs. 

2. Storm damage

Record-breaking rainfall and severe flooding affected large parts of Europe during 2024. As more adverse weather events occur, it can be extremely useful to have a comprehensive landlord insurance policy to support any covered incidents with compensation for storm damage. 

Media reports show that storm damage during February 2019 cost Malta around 9 million euros, giving an idea of the considerable cost involved if you’re not covered by an appropriate rental property insurance policy. 

3. Underground services

If you’re a landlord, are you responsible for the underground services that run from the street to your rental property, such as piping or electrical underground cables? Even though claims based on underground service damage are less common, making sure you’re covered if something goes wrong is very important. 

4. Rental income loss

When a problem arises at your rental property and the tenants can’t live there until things are fixed, you could experience a protracted period of rental income loss. This can be devastating for a landlord, particularly if you rely on that rental income to pay for another essential service or to cover the mortgage. 

A good rental property insurance policy from a reputable provider should enable you to claim back some or all of this lost income, depending on your policy terms and conditions. 

Protective rental property insurance with GasanMamo

Part of our service is to share our years of insurance experience with you so you get the right rental property insurance for your needs. Our friendly team is happy to talk through your situation and see how we can personalise your cover. 

Let us help you protect your property with a policy designed just for you. Contact GasanMamo today or get a quote online to enjoy peace of mind and unparalleled service.

GasanMamo Insurance is authorised under the Insurance Business Act and regulated by the MFSA.

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