A Quick Guide To Choosing A Buy To Let Insurance Policy

Choosing any insurance policy is all about assessing personal needs and this is no different for people considering a property investment. Before choosing a buy to let insurance policy, you need to have a firm understanding of where you stand financially and what you would stand to lose in case of some unexpected circumstance. Here are some things that you need to ask yourself and assess before you pull the trigger on a buy to let insurance deal from any provider.

Is a specialty provider the way to go?
Many people choose an “add-on” insurance supplement from their primary home insurer. They will get lured into these deals by promises of lower overall costs. The problem here is that you aren’t limiting your risks. You are putting all of your eggs into one insurance company’s basket and hoping that they will be easy to work with in case of a problem. Likewise, this creates a situation where the insurer can simply re-package similar coverage options and charge you twice for them. There are advantages to using the same company for both, but many people prefer a policy with a specialty insurer.

Insurance for buy to let companies have the ability to work out tailored packages that suit individual needs. They generally provide you with lower rates and they understand some of the challenges associated with being a landlord. For most people, it makes more sense to choose a policy from some specialist.

How much coverage do I need?
You should choose a buy to let home insurance policy that adequately covers your needs. If you are not depending upon the rent money for other purposes, then perhaps you don’t need rent protection. If you do extensive financial background checks and have faith in your tenants, then this might not be a great option, either. Maybe you will live in an area where there are rarely natural disasters, so why would you need the added cost of mud slide protection? Figure out your actual, real risks and go from there. Don’t let an insurance company talk you into extraneous coverage.

With that being said, if there is a doubt, it’s better to have more cover as opposed to too little. The added costs of that little bit more protection are slight once you have a policy hammered out, so err on the side of caution.

Demand certain guarantees along with your policy

One of the keys to choosing a good buy to let insurance policy is to get assurance from the insurer. For instance, you could choose a policy that provides prompt claim payout and claims assistance. Choose a policy that comes along with some kind of customer care. When these situations arise, you will want an insurance company that is willing to work with you, not against you. Tedious, insurance-necessary situations are difficult enough on their own before you add in the stress of fighting insurance adjusters and claims specialists. Choose a policy that puts the insurer on your side. You can get some additional advice by reading our guide on how to get value for money from your buy to let insurance where we talk about insuring a properties value rather than its rebuild cost, amongst other things.

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