Buy to Let Insurance
Although you may already have either buildings and/or contents insurance for your property, there are good reasons for carefully assessing the protection they provide. Many policies offer no cover for tenanted properties, whilst others do not offer sufficient protection. Some only do so for certain types of tenant. Read the small print thoroughly and assess their value based on the letting plans you have made. Consider in each case whether the policy includes:
- Loss of rent if the property becomes uninhabitable.
- The expense of providing suitable alternative accommodation if the tenant has to temporarily move out for repairs and where the cost is greater than the rent currently being paid.
- Cover regardless of the tenant type (some policies prohibit students and/or tenants in receipt of benefit).
- Cover during empty periods.
- Accidental damage to the landlord's possessions (there is no statutory requirement to insure the tenant's possessions, though in some circumstances they may have grounds to seek compensation).
- Public liability cover where a tenant, their guest or other visitor injures themselves due to a fault in the building or any supplied furniture or equipment.
- Legal expenses cover should a tenant decide to take court proceedings against you.
Some insurance policies are specifically designed for let property. Although many are only available through letting agents, some landlords' associations also provide them, and the cost of membership can often be fully reimbursed through reduced insurance premiums. Check Yellow Pages or consult your local authority for any groups that have been established in your local area. To obtain on-line landlords' insurance quotes, visit www.insurancewide.com where you will also find additional information on this subject.
