Buy to Let Insurance

The scope of the letprotector buy to let insurance cover is very broad. This gives any investor confidence that the investment property is remains protected from loss or damage. For individuals who have just joined the letting market, a buy to let insurance quote will comprise of several elements. Firstly let building insurance – this is a usually a  mandatory requirement if you posses a current mortgage, or  where you are renting out a number of single flats, these may exist in a block or be part of  a terraced house arrangement. Principally this type of building insurance will cover any permanent damage caused to the building by the insured events laid out in your let insurance policy. Examples are flood or fire. Each policy is slightly different, so always be sure to check your documentation.

Secondly, when you decide on insurance for buy to let properties, the option to take out content insurance is worthy of  consideration. This will protect personal items held within the property, usually this means any items that aren’t fixtures such as house-hold and interior furnishings such as  drapes and sofas. It can also cover appliances such as a refrigerator or washing machine or any additional furniture included when renting out a property. Let insurance will give protection for the financial commitment you have already invested.  One further insurance related consideration is property owner’s liability insurance – this protects a landlord in the event that an individual has an accident on the property. Cover can be arrange to cover slight injury as well as more serious events that result in death or bodily injury.

Many landlords wonder what the Buildings Sum Insured (BSI) is.  Landlords are often asked to give an estimate for the BSI when in the process of obtaining a buy to let insurance quote.  This is the estimate of the total cost of having to rebuild your property if it were totally destroyed.  This is not to be confused with the overall value of the property being insured.  This value is normally much higher than the BSI.  If you give what you consider the value of the property, you will more than likely be paying over the odds when you receive your buy to let insurance quote.  It is also important not to directly underestimate the BSI.  If this happens, in the event of a claim the insurers will reduce the amount that you are reimbursed for any damages incurred.  The a look at our buy to let insurance guide under the heading ‘how much cover do I need?’

It is not always obvious to landlords that they are not covered under their own home insurance.  This type of insurance will not pay if the property is being used to generate income. One example of generating income is when you are renting property to tenants.  As a landlord you must have a policy specifically tailored to a landlord.  This is in the form of landlord’s insurance.  Home owner’s insurance is also not rated for the circumstances that come about when you are a landlord. Many landlords are curious as to whether or not they need to take out multiple policies if they own multiple properties.  The answer to this is no.  You can obtain a buy to let quote that is suited for many properties.  It is very easy to get the details of this type of policy online.  It will give you an estimate of exactly what you are dealing with.

Landlords need to keep in mind that when insuring properties, insurance for buy to let will only cover items that are considered to be theirs.  These items are supplied by the landlord for tenant purposes.  Tenants will have to take out another type of cover in order to protect their own contents within a building.  If contents are stolen during a break in, it is only covered if there are signs of forcible entry.  If there are no signs of violence or signs of a forceful entry, contents will not be covered.  When it comes to calculating insurance premiums, the same type s of criteria will usually apply.  Insurers will want to know the location of your property, construction method employed, and postal code.  You will be asked to give a rebuilding cost along with details of any claims filed in the past.  If tenants are already living within your building, an insurance company may ask questions in regard to any tenants. Personal information is left out, but the insurance company will want to know if the tenants are working, students, or on benefits.

Confirmation is often needed as to whether the tenant’s agreement is between the tenant and you the landlord or a third party and the tenant.  This will have a pretty big impact on your overall buy to let insurance quote.  If a property is rented to a housing association or local authority premiums will run higher.

* Subject to minimum premium