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.