UK buy to let insurance provides a financial cover to landlords against damage to their property and assets. This policy protects the investment made by a landlord. Buy to let insurance is critical as a standard home insurance policy is not applicable when a homeowner lets out the property.
UK Buy To Let Insurance: Covers
While purchasing a UK buy to let insurance policy, one can opt for the following covers:
Property cover: In this cover, the building is insured against damage from fire and flood. One can also buy additional cover for risks such as subsidence or terror attacks. While buying this cover, keep in mind the estimated cost of rebuilding the entire property.
Contents cover: Through this cover, a policyholder can insure the contents of a home, such as light fittings, chairs, sofas, carpets and tables, against any damage or theft. However, this cover does not insure the belongings of the tenants.
Landlord liability cover: A landlord is responsible for any injury to a third party due to a mishap on the property. A landlord liability cover offers financial protection for medical and legal costs that may have to be incurred if a tenant gets hurt (say gets burns due to a faulty light switch or hurts himself/herself due to a weak roof or wall) and files a lawsuit against the landlord.
UK Buy To Let Insurance: Extra Covers
There are several add-ons available with home let insurance:
Legal cover: Through this cover, one can add legal protection to a buy to let insurance policy. Some policies may include this cover and it is always a good idea to read the policy document before committing.
Personal valuables: This cover provides protection to your valuables, such as computers and high-end electronics, provided as part of the furnished property.
Loss of rent cover: This cover provides security in the event that damage to your property results in you being unable to rent out your house for a while. This cover is rapidly gaining popularity as landlords in the UK are increasingly facing problems dealing with the nonpayment of rent.