Buildings Insurance for Landlord

Buildings Insurance for Landlord

There are many different reasons why you may rent out a property. You may simply have wanted to invest some spare cash in the property market and to make some immediate cash from lettings. Or, you may be a professional landlord with a portfolio of properties. Your reasons for doing this don’t really matter, getting buildings insurance for landlord will be really important for you.

It is important to insure any property that you own. As a homeowner you probably wouldn’t dream of not having adequate buildings and contents cover in place. Whilst the buildings insurance that you can get as a landlord may work in much the same way as your own home insurance it is not actually the same.

A lot of landlords moving into the lettings sector can make a very simple mistake. They may, for example, think that they can simply take out a standard building insurance policy on their letting property rather than a specific buildings insurance for landlord policy. This isn’t the case and doing this might lead to problems down the line.

If, for example, you decided to buy a new home and to rent out your old one then it might be tempting to simply keep your existing insurance policies in place. But, if you then rented out your original home and you have to make a claim you might find that you have invalidated your policy. If you want to insure a property that you will ultimately rent out then most insurers will insist that you take out a specialist landlord buildings insurance agreement.

This does make sense if you think about it. If you live in your own home then you will take care of it. You cannot, however, always guarantee that tenants will do the same if they rent a property no matter how carefully you vet them and how many references you take.

This means that a rented property may be seen as a potentially higher risk by insurers. For this reason alone they will expect you to put special measures in place to protect yourself. You’ll also probably find that this kind of policy suits your needs better in any case. A buildings insurance for landlord policy may well be designed to give you more extensive and targeted cover to protect your investment.