buy to let property insurance

Buy to Let Property Insurance

explained

Buy to let property insurance is often forgotten by landlords. When renting out a buy to let property that you previously lived in, you're insurance requirements differ considerably from the insurance you require for your normal home. When renting a property you MUST inform your insurance company, if you don't any subsequent claims may be refused on the grounds that you do not have business insurance. The reason you'll need a different insurance policy to your usual home insurance is because you'll effectively be running a business by renting the property. You'll also have certain legal responsibilities to fulfill, some of which you'll require insurance cover. As a result you'll need to research the market and seek a specialist buy to let property insurance policy. The internet should be your first port of call to find cheap landlords insurance for you buy to let.

Lets take a look at the main differences to a normal policy;

Unoccupied property

Obviously an empty house may be more susceptible to burglaries as buy to let properties can be left unoccupied for longer periods than the average home. As a result buy to let insurance policies allow properties to be left vacated (typically between lets) for longer periods of time. Typically you'll be covered if your property is left unoccupied for up to three months, however you should check your policy to be certain of the exact period as policies can differ.

Buy to Let Contents Insurance

When insuring contents buy to let insurance companies tend to distinguish between the landlords contents and the tenants. Obviously if you are renting the property furnished then items of furniture such as sofas, tables and chairs that belong to you will be covered. However even if you rent the property unfurnished then it is easy to forget that you may want to take out insurance to cover the cost of damage to carpets, blinds, curtains as well as potentially items in shared communal areas if the property contains more than one flat.

It is worth reminding your tenants that they'll need to obtain their own contents insurance policy as any of their belongings will not be covered by your landlords policy.

Landlords Liability

As mentioned in our buy to let legal requirements guide the landlord owes his or her tenant a duty of care to provide a safe property to live in. Any claims that arise from such a breach of this duty of care should normally be covered if you policy includes landlords liability. Naturally there will be restrictions on such cover and the insurance company will most likely need you to meet certain requirements such as having annual gas and electricity safety inspections.