Buy To Let Insurance

Buy to let insurance provides cover to landlords for Building Insurance, Liability Cover, Rent Guarantee and Legal Costs.

Building insurance covers the repair or rebuilding of the property after an incident caused by such risks as fire, storm, riot, civil commotion, malicious damage, theft, burst pipes, subsidence and loss of rent. Most building insurances will cover the cost of hiring an architect and consulting engineer and the automatic reinstatement following a claim.

Extra cover can be obtained for terrorism.

Cover should be checked for the length of time property may be left vacant as the usual four weeks may not be long enough for landlords to cover void period and times when refurbishment maybe necessary.

Contents insurance covers the landlord’s contents and varies as to the amount of contents the landlord is providing. More contents insurance will be required if a property is to be let furnished than for an unfurnished let.

Rent Guarantee Insurance covers the landlord against tenants not paying their rent. It is generally charged at 3% to 4% of the rent and may only apply for a limited time.

Unfortunately malicious damage caused by tenants is not normally covered. Legal Cost Cover can be useful as if claims are made against the landlord costs and fees can mount up and become expensive.

Professional advice should be sought if landlords are unsure of what insurance they need.