Buy To Let Property Insurance
There are more than one way to get insurance, but the best way for you is to talk to a specialist. Talking to someone who knows what they’re talking about will save you time and money in the long run. You can make an informed decision by knowing all of your options before making your final choice.
Physical property, such as your house or car, is essential for everyday life. Coverage against potential damage or loss can be expensive and time-consuming if you don’t know where to start looking. One option is buy-to-let property insurance which covers owners occupiers against specific risks like theft, fire and flood damage as well as properties let out on a short term basis.
The first thing to look for in buy-to-let property insurance is a policy that suits your needs. So why not compare how much you could be saving by using our quick and easy ClickQuote comparison service.
So what kind of property insurance do I need?
Even if you are planning to put your house or flat on the market any time soon, it isn’t always necessary to obtain a new insurance policy. Many home owners are unaware that buildings cover can be included within their home contents policy, providing up to £2 million for any damage caused by fire or flood as long as it doesn’t exceed the value of the property. If you let out your property via an agent, the landlord may also have to insure the property against damage caused by you. In addition, if you own a buy-to-let property, you should know that landlords require their own insurance in addition to any cover your insurer provides.
What if I need more cover than a home contents policy can provide?
If you have started renting out your home or letting rooms and want more cover – or just want to see what else is available – then read our guide to buy-to-let property insurance. You may find that it is more or less expensive to cover your home under a landlord policy rather than a more general policy.
If you have decided that you want to insure your property under a buy-to-let policy, it is important to consider some of the factors like whether your house has undergone substantial renovation, as this could increase the premium over a normal house contents insurance premium. You should also find out whether any of your tenants have had any previous convictions or criminal records – this could affect the premium further.
Should I consider any other options?
There are a number of additional options that might be suitable for you. These include an annual policy, which allows you to protect your home for a low monthly premium and pay a higher fee annually. This type of policy could be suitable if you want to avoid paying an initial higher sum but don’t want to suffer from inconvenience, provided you can afford the larger fee once a year. Another option is to look into cover built into your mortgage or any hire purchase agreements.
How much do I need?
You should make sure that the limit of your buy-to-let property insurance covers all the buildings on your property and anything attached to it. All the buildings should be fully covered for any higher value and even if your property is partially damaged by fire or storm, you may still be liable to pay towards repairs. Buildings can include all the internal walls and floors but not just the external walls. If you own a house, it is also advisable to look at coverage for contents insurance which covers all your belongings.
What are my obligations?
If you do want to insure your property under a buy-to-let policy, there are some additional considerations that will need to be taken into account. You could find that you have an obligation to insure your building against damage caused by a third party or three of them together. You may also be obliged to provide your agent or landlord with specific details in order to receive cover.
What do I need if the property is let on an AST?
If your property is let on an Assured Shorthold Tenancy and you take out a landlord policy, it will be void unless you have obtained a third party liability insurance policy (in certain circumstances). The extra cost will not only be considerable, but it may also affect your home insurance premiums. You will therefore need to have cover for properties under an AST for any damage caused by a third party while the property is tenanted and also personal liability insurance against claims made by the tenant against you.
If you are a buy-to-let landlord and have read this article, we hope you found it useful. If you would like to know more about the different ways you could insure your property, ClickQuote can help. Our quick and simple comparison service will help you choose the option that is right for you.
In order to help you make an informed decision, we have put together a comprehensive guide to buy-to-let property insurance which describes what it actually covers and includes information on what to look for when choosing your policy. When you understand the options, you can also make an informed decision on which of them suits your needs. So get out there and compare!
If you have any questions about the things we have discussed in this article, please get in touch with us by clicking here. We are always happy to assist with your queries.
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Find out more: Home Insurance | Renters Insurance | Contents Insurance | Home Owners Policy | Landlord Insurance.
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Personal Quote: 'For me, life for someone is not about living the good days or being happy or being disappointed because those are a part of life, but rather it's about foreseeing the undesirable and planning for that.' - Anton Yelchin. See more quotes here. <archived> Renter's Insurance » Home Insurance | Contents Insurance | Home Owners Policy | Landlord Insurance. Personal Quote: 'For me, life for someone is not about living the good days or being happy or being disappointed because those are a part of life, but rather it's about foreseeing the undesirable and planning for that. - Anton Yelchin. See more quotes here. <archived>
Some recent Buy-to-let Insurance questions:
I have bought a house at the end of January 2017 and recently moved in with my partner and our 6 yr old daughter. i have emailed my landlord to request what i need to do to make the property fully compliant. he has replied that... Hi, I am a single mum of two small boys, living in a two bedroom flat. Our landlord has decided to sell up and we are expected to move out by February 2018, so we need protection from then on in if not sooner, which is why we are looking for...
Conclusion:
If you do decide to insure your buy-to-let property, make sure you take into consideration all of the costs involved, as this may mean that you don’t end up saving anything on your policy. It is also important to check that you take into account all the different types of cover available and the different options any one will give you. If possible, get a recommendation from someone who has already insured their house by purchasing a buy-to-let policy. Finally, make sure that you have a clear understanding with your landlord and agent about what cover they want or need when it comes to insurance on your property as they may be expecting different things from you.