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Buy To Let Property Insurance – What Does This Entail?

Article by Kirthy Shetty









A landlord should consider protecting his buy to let property, as he has his life time’s savings in vested in his property. Renting it out or leasing it out means putting his asset at stake. Isn’t he taking risk by not protecting it well. Moreover, if he is staying away from the rented house and is unable to frequently visit his property, then, the situation is even worse. Both his building as well as content needs a protection cover which is possible only with landlord insurance cover also known as home owner insurance.Basic things covered under homeowner or household insurance are:Building insurance: Building insurance, as the name implies, is the structure of the building. Such insurance protects the structure of the building or external part of the property. But, there are certain permanent fixtures and fittings inside home which are still under the building coverage. Kitchen and bathroom fittings, wooden floorings, laminated coverings, fixed carpets etc. Content Insurance: Content insurance of the landlord, covers temporary items. Carpets, curtains, drapes, furnitures, sofas, electronic gadgets, television, computer, laptops, stereos, gymming and sports equipment are covered. It covers items inside the house as a common practice but it can be extended to items carried away from home such as your laptops taken outside are also insured under content insurance. In addition to this, bicycles, cameras and garden accessories are added.You get protection against:

* Fire* Flood* Theft* Earthquake* Explosion* Subsidence* Smoke, vandalism etc

It is in the hands of the landlord, if he wants to cover both, or just building or content. Does he want a comprehensive insurance policy which covers both in one, or he wants to cover it separately. But, it is unwise to cover building and content separately, as his insurance quotes and the monthly premium to be paid will work out cheaper, if he opts for a single cover comprising both building and content. Care should be taken to choose the right insurance cover and a reliable household insurance provider.



About the Author

Kirthy Shetty, Platinum author. Get all your tips related to: Tenant Reference LetterFor more information on EPC: Domestic Energy Performance Certificate










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Buy To Let Property Insurance

Article by Joseph Kenny









Buy-to-let property insurance, some times also known as residential property owners insurance, is needed if you own houses and/or flats to tenants – either on a short-term or long-term basis. Ordinarily you can buy cheap buy-to-let property insurance in the event that you rent five or less properties in the UK than is the case if you rent more than five properties, as in the case of the former you are seen as a small time landlord with a small business, whereas in the latter you are seen as a full blown property-owning company.

Whether you plan to rent five or less properties, or five or more properties, is, however, a side issue, as in both cases you’ll need to ensure that you have at least the minimum level of required insurance in order to protect yourself. Consequently, the number of properties you own will have a bearing only insofar as the insurance premiums are concerned. That said, if you are looking to become a property owner with a letting business, then you need to ensure that you have the following minimum provisions in your insurance policy:

Fire

Insuring against any fire on the property

Natural Disaster (also known as tempest insurance)

Insuring against natural disasters that may occur, such as a storm where the winds tear off your roof or guttering

Theft

Which is especially important if you are renting out fully furnished properties. In the event that you are renting out unfurnished premises, you may wish to have a discussion with your tenants about whether or not they should have home contents insurance

Public Liability Insurance

This should be a must as it will protect you against any claims your tenants or any third parties (such as their guests) may have for injuries they suffer while on your property

Lost Earnings

There may well be times when your property remains empty; say, for example, while you look for new tenants. If you are relying on the rental income from your tenants to repay the money you borrowed to purchase the property, you need to ensure you have lost earnings insurance to compensate you during this period

Employee Liability Insurance

If you have employees who will visit the property for you to repair any damage, etc. or to collect the rental payments, then you need to make sure that you have employee liability insurance in case they get injured while carrying out their assigned task

Legal Expenses Insurance

As a property owner you may find the need from time to time to retain the services of a lawyer; for example, if your tenants refuse to pay their rent or move out of the property at a specified agreed time – when you may need to get an eviction notice. As legal expenses in the UK can be expensive, you should consider insuring against this risk by having in place a provision of legal expenses in your insurance policy.

Although the above are basically the bare minimums you need in your buy-to-let property insurance policy, you can also tailor these types of insurance policies to meet your particular needs, so make sure that you talk through your circumstances with your insurance provider, especially if you anticipate expanding the business in the near future.



About the Author

Joseph Kenny writes for the Loans Store who can offer cheap loans to UK residents and secured loans for homeowners.Visit Today: http://www.ukpersonalloanstore.co.uk










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