Introduction
For any landlord, renting out a piece of property will always involve some amount of risk, which may not be sufficiently covered by a home insurance policy. On the other hand, buy to let insurance is specifically designed to enable landlords to insure their property from damage after renting it out. So where do you begin and what do you look for? Below are some tips that will help guide you to the right choice of coverage:
History
Why you need it
Regular home insurance companies will not cover a property that is being used for business purposes or being rented out. Buy to let insurance will help to cover you financially while you have rented out your property.
Types of buy to let insurance
Landlord Buildings Insurance: This helps to cover the actual structure you have rented, as well as any permanent fixtures and fittings.
Landlord Contents Insurance: This will cover the items inside the property.
Features
Amount of Coverage Provided by Buy to Let Insurance
Legal Cover: If rent disputes arise, it will cover the legal charges. It will also cover legal charges if you ever need to evict squatters.
Rent Guarantee Cover: This cover will cover the cost of rent lost if your property becomes uninhabitable or if your tenant fails to pay rent.
Employers’ Liability Cover: If you have employees that manage or maintain your property who are injured while performing their duties, this cover will help with their medical bills.
Landlord Liability Cover: If someone is injured as a result of a fault on your property, this cover will protect you against large compensation claims.
Tips and Comments
Buy to Let Insurance Optional Extras:
Home Emergency Cover: If your home suffers the loss of an essential service like water, electricity or gas, this cover will help cover the expenses and hasten the repair process.
Unoccupied Property cover: A regular home insurance cover will not allow you to leave your property unoccupied for more than 30 days without it affecting your cover. This extra will, on the other hand, extend your coverage up to 90 days.
Accidental Damage Cover: If your property suffers a mishap, this cover will help to cover the cost. It will normally be added to the buildings or contents insurance.
Here are some handy tips on how to manage your rental property:
Safety should be your number one concern. Make sure that everything complies with the safety and fire rules among others. Landlords are no longer allowed to hold safety deposits in their own accounts. Instead, they should be kept in a tenancy deposit protection scheme. By law, you are required to give your tenant details on how their deposit is secured, within 14 days of the deposit. Land lords are also required to provide an energy performance certificate to their tenants, to show energy efficiency of a building. If you do not want the hustle of collecting rent, you can hire a property management agent who will cater to your property on your behalf for a fee.
