Buy to Let Insurance Information Article

Buy to Let Insurance Information

The property market is huge, with a lot of houses up for sale and/or people looking to buy their first home. Despite the recession which has gripped Britain of late, there are many people looking to move. However, buying and selling property for some is not only looking for a place to live, some people choose to become landlords and buy property specifically to rent it back out to people who need a place to live.

Being a landlord may seem a lucrative way to make money, but there are certain considerations that need to be taken into account when undertaking such a venture. One such aspect is buy to let insurance; a definite must for those who are already landlords or looking to become one.

Buy to let insurance is essential because there are a lot of things which can go wrong with a property during its lifetime. As being a landlord legally means you are operating a business, normal home insurance does not apply in this situation, which is something that some landlords aren't aware of. Buy to let insurance covers the same sort of areas as home insurance, but does not insure the personal contents of the tenants living in the house, only the contents which you, as the landlord, have placed in their. These must be clearly stated to the insurance company upon taking out such a policy.

The areas that are generally included as standard on a buy to let insurance policy include:

Insurance on the property itself: if something happens that renders the building unsafe, this will cover the costs of the repair/rebuilding work. Events such as fires and floods are the usual culprits, but some insurance companies will offer cover against terrorism or subsidence at an extra fee.

Contents insurance: the contents of the house that belong to the landlord are the only items this aspect of the policy will cover. The tenants must insure their own personal effects if they so choose to do so. If you as the landlord is renting the property as being furnished, this will include soft furnishings such as sofas and carpets which you have placed there and paid for.

Landlord liability: a landlord must be responsible for the safety of the property; if the tenants are injured through a fault in the building not caused by them, i.e. a faulty wiring system could potentially cause injury to those living in the building. If this happens, this policy will cover you for such an incident.

Some insurance companies will offer extra incentives to use their services for your buy to let insurance policy. 24/7 helplines are a common factor, as well as discounts for existing customers and/or new customer advantages. It is very important as a landlord to ensure you have this cover, so be sure to shop around and get the best deal available to you. As with most insurance policies, no claims discounts are available depending on the number of years that have passed without incident, so this will need to be taken into account too.

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