Buy to let insurance aims at protecting the property-related investments made by landlords. It is essentially a combination of three covers, property insurance, contents insurance and landlord liability insurance.
Who should consider Buy to Let Insurance?
Anyone owning a property for rental purposes should consider buy to let insurance. Whether you are the owner of a single small flat or someone who controls a massive portfolio of properties, you should consider let property insurance.
What should Buy to Let Insurance Cover?
A buy to let insurance policy should cover the capital investment made in buying and maintaining any property as well as the income stream that the landlord receives from tenants.
What is the Difference between Home Insurance and Buy To Let Insurance?
A home insurance policy covers homeowners who are living on their own property. However, a buy to let insurance policy covers homeowners who wish to rent out their property. As a landlord, a homeowner operates as a business and should seek business insurance, since he/she would have legal responsibilities towards tenants.
What are the Kinds of Cover in Buy to Let Insurance?
A landlord insurance policy should cover the following:
Property Insurance: This kind of insurance covers the apartment against most risks, such as flood, earthquake and fire. Insurance would cover the cost of repairing or rebuilding. Property owners can opt for additional covers against risks such as terrorism or the regular deterioration of the building.
Contents Insurance: A landlord insurance policy would cover contents that the landlord owns in the building. These could be items like geysers, air conditioning and fittings. Other contents of a home that is owned by tenants, such as carpets, chairs and electronic gadgets, can not be insured by the landlord. Buy to let insurance may also cover contents in the communal areas.
Landlord Liability Insurance: A landlord is held responsible for the safety of the tenants occupying the property. In case a tenant suffers injuries due to something dangerous in the property, he/she can seek compensation. For example, if a badly fitted showerhead falls on a tenant and injures him/her, the tenant can file a case. Landlord liability insurance covers the damages the landlord may have to pay the tenant as well as all legal costs.