Buy to Let Insurance, a landlords guide
Whether you let out your property on a long or short term basis, you must take out buy-to-let insurance. This is also known as residential landlord insurance and is a requirement for anyone who has tenants living in their property.
In eyes of the law, anyone who rents out fewer than five properties is considered a landlord or small business owner. This enables you to get great value buy-to-let insurance. If you let out five or more properties, UK law will view you as a property company.
In any case, you must make sure you have the right insurance in place before you hand over the keys to your tenants.
Much like in the supermarket, buying in bulk will save you money so if you own a large number of properties, you can usually find a great deal on buy-to-let insurance. But whether you have one or one hundred properties in your portfolio, you will have to have some sort of protection in place.
Buy to Let Insurance Checklist:
There are number of eventualities you must protect your property against -
If your property is damaged by fire, either in the house or flat or as a result of a fire spreading from another property, your insurance will cover the cost of the damage.
Read your policy documents carefully because some insurers may not include natural disasters as standard. There can also be a differing explanation as to what constitutes a natural disaster and what you are covered for.
If you have furnished the house or flat before letting it out, then you need to protect your possessions against theft. This will also cover large appliances and other items which aren’t part of the fixtures. However, your buy-to-let insurance, will not cover your tenants’ possession so you should encourage them to take out their own separate contents policy.
Public liability insurance
If any of your tenants or their guest are injured on your property, they may bring a claim against you. This will cover you against such claims. This type of cover is much more common for commercial properties, but is still worthwhile having for a residential property.
This will cover you for periods when the property is empty and you are not getting paid rent. If you rely on the rental income for your own livelihood, this is strongly recommended. Most policies, however, will have maximum period stated for this type of cover.
You may think this is only something that would apply to a commercial property, but it can be useful for buy-to-let as well.
If you employ someone to clean the property, collect rent or just do odd jobs around the house or flat, and they are injured on your property, the could bring a claim against you.
At BusinessInsured.co.uk, we’ll help you find a buy-to-let insurance policy specifically tailored to your needs. Get a quote today or call our expert team on [landordnumber].
Landlords, Compare Buy to Let Insurance at BusinessInsured.co.uk
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