Insurance For Let Properties – What Do You Need To Know?
Friday, April 30th, 2010 Subscribe To Our Feed
Whether you are a first-time landlord or have been in the property investment business for a long time, ensuring you have adequate protection for your asset/s may be a priority for you. Having appropriate insurance for let properties may be something you regularly review, so that you know you have suitable and competitively-priced cover for your property (or properties) against the unexpected.
Why is insurance for let properties so important?
Typically buy to let insurance covers you in the event of you suffering a fire, for theft and maybe even damage due to vandalism. This means that generally you will have to find the money yourself in order to pay for repairs, replacement of furnishings, or even a complete property rebuild.
All of the above show why mortgage lenders may insist that you have insurance in place against the unexpected. After all, while you are still paying a mortgage to them for your property, they might still have a financial interest in it.
What about standard home building and contents insurance?
Never be tempted into taking out a regular home building and contents insurance policy as this is usually not adequate. After all, these policies are typically cheaper than insurance for let properties and on the surface seem to have the same sort of cover, so why not save some cash and use one of these instead?
You would be wrong.
This is because that there are some potential hazards that could happen to a buy to let property that would not typically relate to an owner-occupied property. If you let out your property then you are running a business so commercial building and contents insurance may usually be required because:
- often tenants are not as careful with belongings in a rented property as they are with their own so having protection against damage may be essential. ;
- if one of your tenants or one of their guests suffers loss or damage to their property, or personal injury, due to being on your premises, they could try and sue you for damages. Landlords public liability insurance as part of a buy to let insurance policy may generally be able to assist with costs in cases such as this.
These are just two examples of how a buy to let property may face different risks to an owner-occupied property and therefore why having insurance for let properties in place may be a sensible idea. Yes, this may cost a little more than a standard home insurance policy, but the protection it may typically provide may save you a lot of worry and financial distress in the future should something go wrong.
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