As the landlord of a buy-to-let property it is critical that you have the right insurance in place; a standard home policy is not adequate. Your tenants will need to arrange for their own contents insurance, but as the property owner you must have landlord insurance cover. If your property sustains damage through circumstances such as fire, flood, burst pipes or subsidence then you as the landlord are likely to have to pay the bill.
You will also need specific insurance cover if you are leasing a business or commercial property.
Our insurance advisers can explain the different insurance covers that are available to you and can help you decide which one is appropriate for you.
These can include:
• Buildings cover – this covers the structure and fabric of the property and includes walls, doors, gates, drives, paths and outbuildings
• Contents cover – if you are letting a property as furnished or part furnished, you will need to ensure you have cover for items such as carpets, curtains, and white goods such as washing machines. Contents cover does not cover property belonging to the tenant
• Loss of rent cover – if your rental property is damaged or uninhabitable through ‘insured peril’ such as fire or flood. You should consider this cover if your property is damaged or uninhabitable through ‘insured peril’ such as fire or flood, to meet any shortfall if the property cannot be rented out whilst repairs are being undertaken
• Property owners’ liability for compensation and third party legal expenses – a flexible option which is usually up to £2,000,000 with the option to extend to £10,000,000
• Legal advice – access to a 24 hour legal helpline for advice when you need it
Different policies will offer varying degrees of protection, with optional added coverage depending on the type of property you own.
Optional extras can comprise:
• Accidental damage cover – to cover repairs to structure, fixtures and fittings
• Loss of rental income – if your tenants miss payments
• Specific leaseholders – such as professionals, students, local authority tenants
• Subsidence – ground heave and landslip cover
• Terrorism cover – particularly if your property is located in or near a city centre
Multiple property ownership can bring additional complexities, and it can be difficult to arrange insurance for each property. Our insurance professionals can source specialist coverage for property portfolios such as:
• Single policy with one renewal date
• Cover for properties in between tenants and unoccupied properties
• Flexibility to add or remove properties within your portfolio
We regularly work on projects with property professionals such as surveyors and law firms, and enjoy taking a collaborative based approach.
If you require property / household insurance for yourself visit our private client page to find out how we can help you.