Landlords Buy To Let Insurance – Considering Your Policy
Monday, June 28th, 2010 Subscribe To Our Feed
Before just renewing your existing landlords buy to let insurance policy, you may want to have a browse online to see what other internet providers’ let property insurance policies may have to offer. Doing this may usually secure you a landlords insurance policy that offers you more suitable protection and at a price that won’t break your budget.
Things have changed
Buy to let home insurance has come along way in the past few years. The expansion of the internet marketplace has meant that landlords now potentially have a wider choice when you are searching for insurance for buy to let property.
Of course, having choice is not just about a choice of prices. The policies to be found on the internet often tend to be slightly different to each other.
While some policies contain virtually the same basic features, others may give you a little more, typically you may find included in the cover:
- general buildings and contents insurance;
- assistance with legal fees in certain areas;
- public liability insurance;
- financial assistance in the case of loss of rent as the result of an insured peril.
Importantly though, your policy may have different excesses, conditions and exclusions.
For example, some let property insurance policies may include malicious damage by tenants within its cover while others may not.
There may be no substitute for reading through the policy documentation online to ensure that you have the right insurancefor your rental property.
Prices
One of the things you may notice is that landlords buy to let insurance may sometimes be slightly more expensive than standard owner-occupier home insurance cover.
In the insurance world, levels of perceived risk are used to determine premium costs – usually the higher the risk, the higher the premium.
Tenants of course differ, some excellent, some not so. The one thing that may be certain though is that however good they are, they probably will not take as much care and attention with your property and its contents as they would if it were their own.
Therefore when renting out property there is usually a higher risk than if you were going to be living in the property yourself.
In fact any claim made on such a policy would be turned down and it might prove difficult to find alternative cover elsewhere.
Unoccupied property is a bigger risk
Remember too that if your property is going to be unoccupied for 30 days or more then you may need to consider specific insurance for empty properties known as vacant property insurance. This is because if a property is empty, it is typically exposed to a different set of risks than when it is tenanted.
For instance if there is someone living in the property a leak would be noticed whereas if the property is empty it would not be – as a rule even before any further damage happened.
If the property is empty a leak might not be noticed for many weeks and this may lead to more damage and destruction.
Landlords buy to let insurance for empty properties needs to cater for different sets of circumstances -so don’t get caught out with the wrong policy!
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