Lessor’s insurance

Comprehensive insurance for your buy-to-let home
1

Cover for the parts of the apartment, surfaces and fixtures

Buy-to-let home insurance and its additional cover comprehensively protect everything you need to insure as the lessor. You can choose the amounts of maximum compensation and deductible flexibly according to your needs.

2

Your property is always protected

With lessor's insurance, you can ensure that your buy-to-let home and property stored there are always protected.

3

Deductible benefit of 250 euros for OP cooperative bank's owner-customers

The deductible in losses due to fire, natural phenomenon and criminal damage may be as little as 0 euros for owner-customers.

4

Comprehensive and customisable insurance solution for the lessor’s needs

By extending lessor's insurance with legal expenses, general liability and consequential loss insurance, you get the most comprehensive possible cover. Additional cover helps you prepare against loss of rental income and legal disputes, for example.

 

 

Why should you buy lessor’s insurance? 

Lessor's insurance helps you ensure that the fixtures and fittings, surfaces and property in an apartment you have let out, such as the refrigerator or dishwasher, are insured in the way you want. The tenant’s insurance covers only their own movable property, not the apartment’s surfaces and fixtures, for example.
 
Lessor's insurance also lets you prepare against other risks in a buy-to-let home, such as loss of rental income, bodily injury or material damage caused to third parties and the costs of potential legal disputes.
 
Keep in mind that the housing company’s insurance does not always cover all losses and damage. The housing company or property may have outsourced its liability for matters such as roof structures or plumbing to shareholders. With lessor's insurance, you also ensure that your buy-to-let home is insured against extended maintenance liabilities imposed on shareholders.

What does lessor’s insurance cover?

Lessor's insurance consists of the basic cover, Pohjola Home Insurance, and optional additional cover. Losses are compensated by the different types of cover as follows:
 
  • Lessor’s basic cover or Pohjola Home Insurance covers the surface materials, parts of the apartment and fixtures of a detached house, holiday home or apartment in a block of flats, terraced house or semi-detached house you have let out.  You can also insure your home contents if you are renting your buy-to-let home furnished.
  • Lessor's general liability insurance covers expenses if you cause loss or damage, for example during renovation, for which you are liable as the owner of the apartment or property.
  • Lessor's legal expenses insurance lets you prepare against legal disputes related to a buy-to-let home or property, such as disputes between a buyer and seller.
  • Lessor's consequential loss insurance compensates you if your apartment or property is partially or fully unfit to live due to damage and you lose out on rental income during the renovation.  

Does lessor’s insurance cover deliberate damage on part of the lessee?

Lessor’s home insurance does not cover damage caused deliberately or through gross negligence by a lessee or their family member or guest, except in cases of fire or leakage damage. Leakage damage is covered only if the home is also insured with pipeline leakage cover. The lessor is compensated for loss of rental income during a renovation if the buy-to-let home is also insured with consequential loss cover.
 
It is in the interest of both the tenant and the lessor that the tenant always has home insurance that includes general liability insurance. The tenant’s personal home insurance covers their property or home contents. The tenant’s general liability insurance covers losses for which the tenant is liable for damages by law.
Are you worried about your extended liability for renovation costs as a shareholder? Set the right amount of maximum compensation for each part of the apartment in order for the buy-to-let home insurance to also cover exceptional maintenance liabilities transferred to shareholders under the housing company’s articles of association, such as the costs of HVAC engineering or roofing work.

How should I insure my buy-to-let home?

We recommend that you insure your buy-to-let home as extensively as possible. You get the best cover when you insure your buy-to-let home with comprehensive home insurance as well as three optional additional types of cover.
 
Please note that each buy-to-let home must be insured separately. The insurance needs of a buy-to-let home vary depending on how many buy-to-let homes are owned by you or persons living in your household. If your household owns:
 
  • One buy-to-let home: We recommend that you take out Pohjola Home Insurance for the buy-to-let home and lessor’s consequential loss cover as an additional cover. If you have insured your own home with Pohjola Home Insurance, the liability and legal expenses insurance included in the policy will also cover one buy-to-let home owned by your household. In this case, you do not need separate lessor’s liability and legal expenses insurance for your buy-to-let home.
  • Several buy-to-let homes: You need separate lessor's insurance for each buy-to-let home. We recommend that you insure all your buy-to-let homes with the basic cover, Pohjola Home Insurance, as well as three additional types of cover: lessor’s legal expenses, general liability and consequential loss cover.  

Available cover for lessor's insurance

Check from the table below which types of insurance are available for your buy-to-let home and what they cover.

   
Name of cover What does it cover? When is it required? Where can I get it?
Pohjola Home insurance or MyHome Insurance Insures your buy-to-let home and movable property stored there. You can choose the types of cover and deductibles you want. You can also increase the maximum compensation for movable property and parts of the apartment. Must be bought separately for each buy-to-let home. Sold at the online store, through the request for offer or by phone.
Lessor’s legal expenses insurance Provides protection against legal disputes related to the purchase or sale of a buy-to-let home, for example. If your household owns up to one buy-to-let home and you have insured your home at Pohjola, your home insurance’s legal expenses insurance also covers the buy-to-let home

If your household owns more than one buy-to-let home, you need separate legal expenses insurance for each.
Sold at the online store, through the request for offer or by phone.
Lessor’s general liability insurance Covers damage to third parties for which you are liable by law as the owner of the apartment or property, such as expenses caused by an accident during renovation. If your household owns up to one buy-to-let home and you have insured your home at Pohjola, your home insurance’s liability insurance also covers the buy-to-let home.

If your household owns more than one buy-to-let home, you need separate liability insurance for each.
Sold at the online store, through the request for offer or by phone.
Lessor’s consequential loss insurance 
 
Compensates you for loss of rental income if your apartment or property is temporarily unfit to live due to damage covered by Pohjola Home Insurance and you lose out on rental income due to the renovation. You may receive compensation for a period of up to 12 months during the renovation. Must be bought separately for each buy-to-let home. Sold at the online store, through the request for offer or by phone.

Which factors affect the price of lessor's insurance for a detached house?

The premium of lessor's insurance is determined by the types of cover you select, your deductible and the characteristics of the buy-to-let home. The pricing of additional cover and the maximum amounts of compensation are designed to ensure that your buy-to-let home and property have the most comprehensive possible insurance cover with a low deductible.
 
You may also be entitled to discounts on lessor's insurance. As a Pohjola Insurance prime customer, you are entitled to a 7% discount on your lessor's insurance. You receive a 3% additional discount if you are also an OP cooperative bank owner-customer. In total, you can get a discount of up to 10% on the insurance. As an owner-customer, your OP bonuses can also be used to pay insurance premiums, meaning you pay less on your insurance bill.
 
As an owner-customer, you also get a deductible benefit of 250 euros. If you are our owner-customer, the deductible in losses due to fire, natural phenomenon and criminal damage in your home may be as little as 0 euros.  
 
There is a fire in the kitchen in your buy-to-let home, and your tenant is forced to move out while the damage is repaired. Pohjola Home Insurance covers the costs of repairs to the kitchen fixtures and surfaces, and you have selected a deductible of 250 euros. Thanks to the deductible benefit, you do not need to pay any deductible. Lessor's consequential loss insurance covers you for lost rental income during the repairs. Consequential loss insurance has a separate deductible.

Remember to also insure the outcomes of renovations

The basic cover in lessor's insurance, Pohjola Home Insurance, is particularly important if, once the home has been completed, the surface materials have been improved or new fittings or fixtures have been added, for example. We recommend that you take the value of the renovations or improvements into account in your lessor's insurance and the maximum compensation for parts of the apartment, as the housing company’s or property’s insurance does not always cover all losses, or the deductible or reductions are so high that you receive no compensation for damage to your apartment.
 
You can supplement the basic cover with lessor’s consequential loss cover. For example, if the refurbished kitchen in your buy-to-let home suffers water damage and your tenant is forced to move out for the repairs, lessor’s consequential loss insurance covers lost rental income during this period.
 
The housing company’s real estate insurance covers losses only up to the basic level, that is, primarily up to the level it was in the year it was completed. Any basic improvements carried out in the entire housing company are also included in the basic level.

You can buy lessor’s cover easily online by selecting the type of home: 

The division of responsibilities between the housing company and owners of shares in housing company is determined by the Limited Liability Housing Companies Act. The shareholder is responsible for home interior, while the housing company is responsible for the structures and insulation. The Articles of Association or shareholders' meeting may, however, agree on extensions of the shareholder’s or resident’s maintenance liability. Tenants will nevertheless be responsible for their own movable property.

Division of responsibilities between housing company and owners of shares in housing company

  Housing corporation Shareholder
Constructions Roof, floors, ceiling, external and internal walls, balconies, water insulation  
Surfaces   Internal floor and wall surfaces, paintings, wallpaper, internal plastering, screeding surfaces, dropped ceilings
Doors Front door, outer balcony door, letterbox, name sign, lock Internal doors, inner balcony door, front-door security lock, safety chain, break-in protection
Fixed furniture and equipment   Cupboards, window sills, curtain rods, sauna benches, fireplace, ovens
Ventilation systems Valve repair and renewal, filters outside the home, cooker hood connected to air exhaust duct, air intake and outlet machinery Valve cleaning, filters inside the home, cooker hood

 

As a Pohjola Insurance prime customer you will receive discounts benefits. When you are also an OP cooperative bank owner-customer, you have access to even better benefits and discounts and the bonuses you have received as an owner-customer are used for your insurance premiums.

 

 

The insurance is issued by Pohjola Insurance Ltd.