What is let property insurance?
Let property insurance – also known as buy to let insurance – is vital if you are a buy to let landlord, as a standard home insurance policy will not provide the cover you need. There are many things that can go wrong with a rental property, from tenants failing to pay their rent on time to flooding. A problem can very quickly turn into a nightmare without the correct financial safety net.
Why do you need a buy to let insurance policy?
A buy to let policy provides cover for lost rental income if the property becomes uninhabitable after a flood, fire or burglary, or if your tenants do not pay their rent on time, leaving you to cover the shortfall.
A let property insurance policy is an umbrella under which many different combinations of insurance policy fall. You can tailor your policy to meet your needs.
What types of let property insurance are there?
- Loss of rent insurance – if your property becomes uninhabitable and your tenants are forced to move out
- Unoccupied property insurance
- Accidental damage insurance for landlords – if a tenant burns the carpet putting down their hair straighteners, you can claim for a replacement
- Landlord emergency cover – for incidents such as burst pipes
- Landlord building insurance – usually a prerequisite for a buy-to-let mortgage
- Landlord contents insurance – even if you rent an unfurnished property, you need to account for white goods Landlord liability insurance – for incident of injury or death on your property
- Rent guarantee insurance – if your tenants default on their rent
- Legal expenses insurance – covers any legal action you might need to take
It is essential to tell your insurer every time that you have a change of tenant status, such as from professional workers to DSS.
Rental properties carry more risk of damage and unexpected incidents simply because you are likely to be renting to strangers.
Other property insurance information: