We’ve all done it, we skip all of the extras because we want the bare minimum to get us by. Whether its property insurance or car insurance, there is always something else that can be added on, and a lot of us can’t afford it.
You can however, choose extras that apply to you and not fork out for everything that you believe you won’t need. Think strategically about what can save you money in the long run.
For example, if you rent property to a family member, you may not want Rent Guarantee Insurance and the extras of Legal Expenses, because you trust that you will always get your rent from that tenant and will never have to go through this process.
This doesn’t rule out the possibility of your property experiencing a natural disaster and tenants needing alternative accommodation. So in this instance, it would have been essential to increase your premiums to cover the cost of alternative accommodation, but you don’t have to have to protect your rent with this.
So how does it work? It all seems too good to be true, a bit like a courtesy car if you have a road accident, your tenants accommodation is paid for, while your property is being restored.
This does mean however, you would not be getting your usual rental income from your tenants because they would be getting free accommodation, so you would have to have an alternative income to prevent yourself facing financial difficulties.
Because UKinsuranceNET deal with insurance companies who specialise in accepting this type of risk with policies not necessarily available elsewhere, they are able to tailor your policy to suit your property and give highly competitive quotes. This means that you will be paying the lowest prices in order to protect your rental income up to a certain amount.
With these extras, your house could be completely destroyed, but your tenants would have free housing elsewhere and you would receive your monthly rent from your insurance provider, until the property had been restored or rebuilt.
For your circumstances to qualify for the alternative accommodation cover, the property will need to have been uninhabitable by one specified event. This means that if the property has not been maintained and overtime it has been badly effected by mould, so for health risks your tenants could not stay there, your insurance company would not cover these costs.
Policy extras don’t only protect you if you’re house has been destroyed, there are all kind of things that you can add on.
- Extended accidental damage cover for the buildings and or contents.
- Malicious damage by tenant cover
- Increased public liability cover for property owners
- Employer’s liability cover for injury to any domestic employee
- Water damage/leakage tracing costs for pipes and underground services.
- Loss of rent and alternative accommodation
- Legal Expenses
- Rent Guarantee
So if you’re assessing the risks that can affect your rental income, especially if the rent is needed to meet mortgage payments, then you will also like to read What Measures Should You Be Taking To Protect Your Income. You can keep up with UKinsuranceNET’s latest competitions and blog posts by following us on Facebook and Twitter.
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