These kind of insurance policies are not legally required, but are recommended for a number of reasons including the protection they bring to your property against risks such as flood and fire. There are a number of insurance policies offering this kind of, and you will need to opt for residential cover as opposed to commercial lets if this is the type of cover you require. If you have a number of properties, however, you may be able to find discounts for a portfolio of property.
The Number One Mistake That Landlords Make
Apart from failing to get their property insured at all, the number one mistake that many landlords make when it comes to insuring their buy to let property is that they simply leave it under a simple household insurance policy.
It is important to remember that now your property is earning you an income your normal home insurance policy no longer applies. You need to arrange a specificpolicy in order to make sure you are still covered. In addition to this, many mortgage providers will insist on seeing proof that you have valid insurance to protect the buy-to-let investment.
The Benefits of Residential Insurance
There are a number of benefits to taking out a residential insurance policy. This includes the fact that you will be covered for loss of rent, and the cost you may need to pay for tenants who need alternative accommodation when work is being carried out.
In general most residential insurance policies will protect against a number of risks to your building and contents including:
- And more
It is important to remember that policies will differ for different insurers will cover you for different things, and certain aspects such as contents insurance may come at an extra cost, alongside options such as.
How Much Does Residential Lanlords Insurance Cost?
The cost of residential insurance varies greatly and is dependent on a number of factors. This will depend upon the kind of property you have and how big it is, as well as the property is located. The age of your property will also alter the amount you need to pay, and the type of tenant can have an impact. Other factors involved will also include the level of cover you wish to go for and the cost of the building to be rebuilt should total loss occur.
Finding an insurer for your residential letting is usually simple as there are a wide number of providers to choose from. It doesn’t come down to choosing the cheapest, however, as all insurers will have different levels of cover and different terms for eligibility.