Insurance for Buy to Let Property

Insurance for buy to let property

If you have a property you’re renting out, or one that you are thinking of letting out, it may be highly advisable to consider insurance for buy to let property.

This type of policy can come in several shapes and sizes but it may be a good idea to think carefully about all the risks before you buy, so that you can ensure you have adequate protection.

Unfortunately as a businessperson (and if you rent out your house then in terms of tax and insurance you are in effect a businessperson) you may have to concern yourself with a number of “what ifs” that do not apply to the owner-occupier.

Tenants

Your tenants may be nice people and they may generate your income, but equally they create risk. There are the risks of what they may ask you for in the event they or their visitors suffer injury on your property. You may need a combination of professional and public liability insurance to cover your risks here.

They may generate your income but they may not be such nice or considerate people.  You will be at risk of wilful damage to your property or its contents. There is also the possibility of accidental damage or that caused by neglect or lack of interest such as leaks. You may hold a deposit but this can prove to be a legal nightmare – that’s even when the deposit exceeds the value of the damage which it well may not.

Your property is empty at times. Even if you’re extremely fortunate, you are unlikely to achieve 100% occupancy. During those in between times when it’s empty or being cleaned, your property will be more at risk of things such as flooding, unauthorised entry, vandalism and so on.

Your income is at risk. If you have a problem with your property, not only could you need to write large cheques to have it rectified but also during any repairs it may be out of commission and not generating income for you. That could affect many aspects of your life.

It is for these and other similar reasons that basic owner-occupier insurance won’t cover rented properties and why it may be advisable to seek appropriate insurance for buy to let property.

There are specialist suppliers of such insurance who operate on the Internet offering landlords insurance policies. It may be worth consulting their sites if for no other reason than to see what’s available. Insurance for buy to let property need not cost a fortune and having such a policy could help you avoid major financial problems.