Buy to Let Landlords Insurance

Buy to let landlords insurance

If you are renting out property then by definition you’re a landlord. If you do not have the right sort of buy to let landlords insurance you could also end up being a very hard-up one!

That’s because the property you’re renting out is both an asset and a source of income. For that reason, it is doubly important that you protect yourself against a variety of risks.

There are various excellent insurance policies out there that can help but first it is necessary to dispel one myth or perhaps remove a ‘temptation’ to try and economise.

Do not be misled by those that say you will be able to use ordinary buildings and contents insurance for a property you’re renting out. Yes, such insurance may be a little cheaper than a good buy to let landlords insurance policy but in the event of a problem it could be virtually useless to you.

The instant you rent out a property any existing ‘owner-occupier’ forms of insurance become invalid. There are many reasons for this not the least of which is that rented properties are by definition more ‘at risk’ than those that are owner-occupied. It’s also the case that should you make a claim the insurance companies do have ways of finding out whether or not the property is rented.

As a result, it may be advisable to spend a little extra and ensure that you have good buy to let landlords insurance providing:

• Buildings and contents insurance to include the risks of tenant theft to or damage of, your contents, fixtures and fittings;
• Cover for your property on all the above risks when it is empty such as between lets or for redecoration;
• Public liability cover – providing protection against claims from people visiting or passing-by your property where they or their property have sustained damage caused by something that is your responsibility. People falling over floorboards or cars damaged by falling roof tiles are just two examples;
• Tenant / professional liability cover – to cover you for claims from tenants that they have suffered injury whilst in your property;
• Loss of income protection – this to ensure that if your building is out-of-action for a period due to repairs then you have the possibility to obtain some compensation for the loss of income. This cover may also apply in some circumstances to tenants who depart leaving large unpaid arrears.

There are specialist providers of buy to let landlords insurance who can be found on the Internet. Not only will they have policies to suit most needs but also they will usually be more than happy to offer guidance and deal with any questions you have. They may be worth checking out further if you are in any doubts about the nature of your existing cover or if you’re thinking about a business in this area.