How do you buy landlord insurance?

If you have decided to begin renting a property you own to tenants, then you will have to begin shopping for landlord insurance. A standard home insurance policy is not a suitable form of cover and you will need to look into purchasing landlord insurance in order to cover the building and everything it in. So: how do you buy landlord insurance?

You should take into account several factors that will contribute to the cost of your landlord insurance. Such detail as the age of the property and its location will be taken into account when totalling the cost of your premiums. It is also likely that companies will review how many claims you have made in the past, as well as calculating the total cost of damages in the event of a complete loss. Providers will even review the type of tenants that will be staying in your property and how they may affect it.

To begin, you’ll have to buy buildings insurance. This type of policy will cover things like the infrastructure of the property, the utilities and any surrounding features, such as a garden. If you have this, you are ensuring that any damage that occurs to your property as a result of adverse weather conditions or careless tenants will be covered.

The second component of your landlord insurance is the contents cover. This area will protect the items and materials that are external from the building, like furniture and electronics. Accidents do happen and it’s important that you are adequately prepared to deal with them when they occur.

There are a number of websites for insurance providers as well as online comparative sites for you to find the best deal. Make sure you are shopping around and frequently comparing the different options available to make sure you are getting the best policy for your money.

Benefits of buy to let buildings insurance

If you are a landlord that rents out the properties you own to tenants for any period of time, you will need to consider purchasing buildings insurance. Buy to let insurance is a special type of insurance that is required for you to own if you wish to make a claim as a landlord. So what are the benefits of buy to let buildings insurance?

The first benefit is that you could very well receive cheaper buy to let buildings insurance if you are only renting out a low number of properties. For example, if you have less than five properties that are available for let, UK law permits that you should receive cheaper premiums. This means it can be much more worthwhile for small time landlords and property owners to purchase buy to let buildings insurance.

It’s also important to consider the amount of protection you will receive as the owner of buy to let buildings insurance. First of all, any damages that occur as a result of natural disasters, adverse weather conditions and fires can be covered within your policy. However, it is important to remember that some policies will offer this kind of cover as standard and others may not.

As a landlord, companies recognise that renting your property is a form of your income, and therefore it is vital that you can retrieve the rent. Some policies will cover you for loss of rent or lost earnings as a result of adverse damage to your property.

The other big advantage of buy to let buildings insurance is that you will receive public liability insurance. This part of your policy will cover you in the event of accidents or injuries occurring on the location of your property. Any damages or legal expenses that may arise will be compensated for by your policy to a certain extent.

Although owning buildings insurance is not a legal requirement, it is always strongly advised to ensure that you are prepared for all the potential problems that you may face you as a landlord.

Everything you need to know about buy to let contents insurance

As a landlord, the property you are renting out is an important source of income. Therefore you need to make sure that your property is being rented out to tenants regularly. You and your tenants will have items and materials within the property that will also need to be insured. The best way to do this is by purchasing buy to let contents insurance. So what is it and how does it work?

Most policies will cover the contents of your property from what are regarded as the standard perils that can occur. These can be fires; floods, earthquake damage or theft, but some policies also include other problems like collisions from falling branches or trees and damage from riots or civil commotion.

Contents insurance is sold separately to buildings insurance. When you purchase contents insurance for your letting property, you should receive cover for all the items within the building in the event of them being lost, stolen or damaged on the basis of new for old.

Within the policy you should receive cover for the building’s contents in its entirety, including furniture and carpets. Buy to let contents insurance will cover any electronics and appliances that you have in the property up to a certain amount. These limits will often vary depending on which provider you buy your insurance with. However, it is important to remember that any content that belongs to your tenant most likely won’t be covered by this policy.

Tenant contents insurance is available as an additional policy from your buy to let contents insurance. This kind of insurance will cover any accidental damage to tenant’s contents or landlords contents as a result of negligence from the tenant. This policy can also cover the tenant’s liability to the public.

Contents insurance is always strongly advised for all landlords, whether they are experienced in letting their property or not. Nobody can predict the potential accidents and damages that can occur, so the best thing you can do is be prepared for them.

Myths about buy to let home insurance

People will always want to question what they hear about buy to let home insurance because there are some myths out there. So here are some of the mysteries of buy to let home insurance solved.

It’s compulsory for me to have a buy to let home insurance policy – This is not true. You are not required to own buy to let home insurance by UK law. Nevertheless, it’s still important to remember that without a policy, you could find yourself in a real financial struggle if something goes wrong. Also, if you have your property on a buy to let mortgage, you will most likely have to have full buy to let home insurance.

My insurance policy will cover ‘acts of God’ – Not the case. Although many providers specify damage from fires, earthquakes or any other natural disasters, there are sometimes things that even they hadn’t predicted. Make sure you know exactly what you are covered for by your provider in the early stages of purchasing your policy.

Buy to let contents insurance will also protect my tenant’s contents – Wrong again. In most cases, you have to purchase additional tenant contents insurance separately from your buy to let contents insurance. Tenant contents insurance will cover the accidental damage of their possessions, their liabilities to the public and any damage that occurs to your property as a result of their negligence.

Most companies specify a number of days that the property can be empty for before cancelling the policy – This is true. Many providers will arrange with you a period of time for which the property can remain unoccupied before you are no longer covered. This varies between providers, some will say 30 consecutive days and others my say 45 consecutive days. There are also special policies available for landlords who are renting out to students which permit the property to be unoccupied for longer.

So there are some of the myths of buy to let home insurance cleared up.

Information needed on a buy to let house insurance application form

If you are a landlord who is thinking about purchasing buy to let home insurance, then there are some details that you are required to provide. So what information will you need to give on a buy to let house insurance application form?

First of all, you will start out with a series of your personal details. You will be asked to specify whether the application is single or joint. Once this has been done, you will proceed to enter basic personal information like your name, date of birth and gender. Some forms may request other details from you, such as if you are a smoker.

After this you will be required to input a series of details about your property. You will need to know the year that your property was built. In addition to this you will need to specify the type of property you are letting; whether it is a house, a flat or some other property type. This will then lead to you telling the provider a further description of the property; if it is a house that is semi-detached or not for example. Then you must state the number of bedrooms within the property.

The final section of the application form will ask you for a series of contact details for the company to get in touch with you. This will include your home, work and mobile telephone numbers, your email address and your postcode. All these details should only be used by the company to get in contact with you about your policy.

So that is all the information that you will need to provide when you are filling out a buy to let house insurance application form. Once this is complete, you will continue through the remaining stages of the application and will be on your way to owning buy to let house insurance.

How much should your buy to let insurance excess be?

If you own property that you are renting out to tenants, it would be within your best interest to purchase buy to let insurance. When you have purchased buy to let insurance as a landlord, you may be required to pay excess when you make a claim. So how much should this excess be?

The first thing to remember is that the excess you will be charged varies between all the providers of buy to let insurance. It is very important to frequently compare and contrast all the offers available to you before you commit to a deal. A quick Internet search will provide you with a comprehensive list of buy to let insurance offers for you to compare.

Once you have chosen an insurance company to purchase your policy from, it’s also important to remember that the excess varies with each individual policy. It all depends on what features you have added to your policy whilst you have been compiling it.

Some companies will also vary the excess you are charged based on whether the property you are letting is residential or commercial. You will notice that a residential property will face lower excess costs on each individual component of a policy than a commercial property will. 

You should expect your buy to let insurance excess to increase the more features of protection that you add to your policy. Therefore it’s important to find a policy that covers every aspect of what you need. Make sure you are absolutely certain on what your policy is giving you to avoid paying unnecessary excess charges.

There are a number of websites that are readily available for you to conduct comparisons and compile quotes. Comparing and contrasting all the offers available in the online market will ensure that you receive the best possible cover for what you are looking for.