You may have one property that you currently have tenants living in, or you may have a whole portfolio that you are managing – either way if you are a landlord in any capacity then you should make sure that you are properly covered. Taking out a buy to let insurance policy can give you protection for a wide range of possible accidents or events and it is something you should seriously consider.
Some people may think that you can cover your rented out properties under a basic home insurance policy but this is not the case. Due to the fact that the property is effectively a business and other people than yourself will be living in it you need to get a different type of cover. The cover that you should be getting can be broken down into three main areas that can be combined in the same policy.
Firstly is the overall property cover which will give you protection in the event of the building flooding, catching on fire or other similar disaterous events. With this on your policy you will be able to claim for the cost of any rebuilding work that may be required in the event of a domestic disaster. For this reason you should ensure that any valuation you provide to your insurer is accurate.
Another part of your policy will be landlords liability cover. This can be extremely important as with this you are covered in the event of any of your tenants injuring themselves as a result of a fault in the property. If someone trips over an ill fitted carpet or gets an electric shock from something that isn’t wired properly then there is a good chance they will make a claim against you. Without the necessary cover you could end up with huge payouts.
The final part is your contents cover which is self explanatory. Most tenants will take out their own policy to cover their possessions but you also need to cover anything that you own within the premises. This can cover you in the event of any carpets or other furnishings being damaged by your tenants.
Taking the above into consideration, you can see how important taking out buy to let insurance can be, if you choose not to then you may regret it further down the line.
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