Are you considering becoming a buy to let landlord? Or maybe you already are but unhappy with your insurance. Either way, knowing what to look for in landlord insurance is absolutely crucial for your protection and liability. This decision will be amongst the most important you make during this whole process.
Follow this simple, yet effective guide to ensure you select the best possible option for you and your new and exciting venture.
- Honesty is the best policy
When investing in landlord insurance, it is so important not to try and cut any corners, or cover up any cracks (pardon the pun). Being as honest about your situation as you can will benefit you and ensure you have sufficient cover. This is where you should state any anxieties or potential issues you may have with your property. This will not only provide you with the best insurance and protection, but will also give you much needed piece of mind.
- Know what’s covered?
Don’t be fooled by this simple question. It’s important that you know that landlord insurance covers the cost of rebuilding your property from scratch, meaning the cost of the labour and materials needed for the rebuild is what’s considered, rather than the market value.
- Late rent
Unfortunately the world in which we live is not perfect, and by no means is anyone who lives in it either. There is a high possibility that during the course of your property letting, a few hiccups may occur along the way. Damage to the house by the previous tenants may slow down the turnaround until the next tenants move in. This can subsequently result in late payments. You may also encounter late rent payments, which consequently can affect your own monthly income, disrupting your living arrangements. Some policies will cover this kind of situation, which we would highly recommend you consider.
- Fully Furnished?
Remember that if your property is going to be furnished then you will need to insure the contents as well as the carpet and other possessions. Insurance can cover damage and even theft, to ensure your money and investment is not wasted. You should also note that this insurance does not cover the tenant’s personal belongings, so they should take it upon themselves to seek their own contents insurance.
- Accidents can and will happen
With all that said, there is always one grounding thought you must always keep in mind; your tenants are only human. Wear and tear and accidents are bound to happen, no matter how thorough your tenant search may be. From smoke damage to flooded bathrooms, selecting a landlord insurance that can cover these kinds of damages will lessen the impact and stress of these unfortunate inevitabilities.
Each landlord policy will differ slightly, but you should have confidence in knowing that there is a perfect policy out there for you. We hope that this guide has given you some more clarity on what to consider when selecting landlord insurance, for some more information or advice head to UKinsuranceNET to send in a query or call one of their expert members of staff on 01325 346 328.