If you are new to the business of renting property or are something of an old hand, you are likely to realise the value of insurance for your investment. However, as with all policies, buy to let cover may be expensive if you end up with the wrong deal. Thankfully it is possible to compare buy to let insurance, perhaps with the help of a broker, and save time and money.
When you are looking at different types of cover it can pay to make sure the different elements of each policy meet the minimum requirements of what you are after. So for example, there is no point going for a cheaper policy if it only protects an empty property for a relatively short period of time particularly if this period is longer than you think it would take to be let somewhere if it was left empty.
When you compare buy to let insurance it may also pay to check that the fixtures and fittings are protected on the policy you are looking at, and if you are talking to a broker, it may help to give them a clear idea of what is in the home and what you are looking for in terms of contents cover. Some deals provide only buildings protection, but you may want a limited amount of contents cover if there are some belongings and house, or an expansive protection plan if you are looking to rent somewhere which is furnished.
Some policies will cover you as standard for any damage caused by tenants, but some may not. It is also perhaps worth checking this. Likewise you may want to look carefully at any business interruption protection included as part of your deal.
In the event of a major disaster like a fire or flood, a property may be completely uninhabitable for a long period. This means you may want protection not only for covering the cost of the repairs, but also for any rent which you lose in the process of the work.
In some cases you may not be able to get all of the rent back which you lose following a fire – an insurance policy may not provide enough cover as standard, and this is also worth looking at when you make comparisons.
It may be tempting to try to cut corners by taking out a traditional home insurance policy, but this carries obvious risks. If someone fails to disclose that they are renting out the property there is every likelihood that they will not get a payout on their insurance and will have the policy cancelled.
Failure to have a proper buy to let policy in place also means you do not have liability insurance – potentially costly in the event a tenant launches a legal case following an accident in the property.
This is why when you compare buy to let insurance you may want to look carefully at what is included to ensure your legal and financial interests are protected in full.
Get to Know Us