Buy To Let Property Insurance

Buy To Let Property Insurance



Buy to​ Let Property Insurance
Buy-to-let property insurance,​ some times also known as​ residential property owners insurance,​ is​ needed if​ you​ own houses and/or flats to​ tenants – either on​ a​ short-term or​ long-term basis .​
Ordinarily you​ can buy cheap buy-to-let property insurance in​ the​ event that you​ rent five or​ less properties in​ the​ UK than is​ the​ case if​ you​ rent more than five properties,​ as​ in​ the​ case of​ the​ former you​ are seen as​ a​ small time landlord with a​ small business,​ whereas in​ the​ latter you​ are seen as​ a​ full blown property-owning company.
Whether you​ plan to​ rent five or​ less properties,​ or​ five or​ more properties,​ is,​ however,​ a​ side issue,​ as​ in​ both cases you’ll need to​ ensure that you​ have at​ least the​ minimum level of​ required insurance in​ order to​ protect yourself .​
Consequently,​ the​ number of​ properties you​ own will have a​ bearing only insofar as​ the​ insurance premiums are concerned .​
That said,​ if​ you​ are looking to​ become a​ property owner with a​ letting business,​ then you​ need to​ ensure that you​ have the​ following minimum provisions in​ your insurance policy:
Fire
Insuring against any fire on​ the​ property
Natural Disaster (also known as​ tempest insurance)
Insuring against natural disasters that may occur,​ such as​ a​ storm where the​ winds tear off your roof or​ guttering
Theft
Which is​ especially important if​ you​ are renting out fully furnished properties .​
in​ the​ event that you​ are renting out unfurnished premises,​ you​ may wish to​ have a​ discussion with your tenants about whether or​ not they should have home contents insurance
Public Liability Insurance
This should be a​ must as​ it​ will protect you​ against any claims your tenants or​ any third parties (such as​ their guests) may have for injuries they suffer while on​ your property
Lost Earnings
There may well be times when your property remains empty; say,​ for example,​ while you​ look for new tenants .​
If you​ are relying on​ the​ rental income from your tenants to​ repay the​ money you​ borrowed to​ purchase the​ property,​ you​ need to​ ensure you​ have lost earnings insurance to​ compensate you​ during this period
Employee Liability Insurance
If you​ have employees who will visit the​ property for you​ to​ repair any damage,​ etc .​
or​ to​ collect the​ rental payments,​ then you​ need to​ make sure that you​ have employee liability insurance in​ case they get injured while carrying out their assigned task
Legal Expenses Insurance
As a​ property owner you​ may find the​ need from time to​ time to​ retain the​ services of​ a​ lawyer; for example,​ if​ your tenants refuse to​ pay their rent or​ move out of​ the​ property at​ a​ specified agreed time – when you​ may need to​ get an​ eviction notice .​
as​ legal expenses in​ the​ UK can be expensive,​ you​ should consider insuring against this risk by having in​ place a​ provision of​ legal expenses in​ your insurance policy.
Although the​ above are basically the​ bare minimums you​ need in​ your buy-to-let property insurance policy,​ you​ can also tailor these types of​ insurance policies to​ meet your particular needs,​ so make sure that you​ talk through your circumstances with your insurance provider,​ especially if​ you​ anticipate expanding the​ business in​ the​ near future.




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