Purchased a buy-to-let? In this blog we look at 5 types of insurance you need to consider
The wonderful world of buy-to-let, just like any other property investment, cannot ignore the importance of insurance cover. Obviously, building insurance will be your biggest concern, but there are other safeguards that are well worth looking at. Below are listed a few options open to the buy-to-let investor.
Building Insurance – A good building insurance will protect not only your property, but also the mortgage, if you have one. Don’t forget to compare prices to make sure you end up with the best deal. And most importantly, always check the small print to make sure that what’s on offer is the right cover for your situation.
Public Liability – If you intend to do any renovation to your property, then you are well-advised to get this cover. even if you are working on your own. Especially if you are taking on a big project, where heavy vehicles or items of machinery are around, then Public Liability is even more important.
Landlord’s Insurance – This insurance offers personal protection to you, the landlord, should your tenant default on rental payments, or if there is an issue which cannot be resolved out of court. Letting agents acting on your behalf should automatically offer you this cover. If you are a member of The National Landlord Association you will receive this insurance at a reduced rate.
Rent Recovery – Because of the increase in the number of tenants failing to pay their rent, insurance companies are now offering a separate insurance cover called Rent Recovery. This means that they will pay the tenant’s rent for a period of up to six months. Check with your insurance company for the exact terms that they are offering.
Accidental Damage – This insurance is well worth having if your property is going to be for multiple tenancy, such as a student let. Any accidents that occur during the tenancy, minor or major, will therefore be covered. Again, always check that the insurance on offer is right for you.