If you’re considering renting out a property, it’s essential that you have the right insurance cover in case something goes wrong. It’s common sense to cover your property because there’s always the chance that something will get broken or an unforeseen disaster, like flooding, will arise. You will also need to take precautions in case your tenant fails to pay the rent on time, particularly if you rely on rental income to finance other mortgage payments.

Always Choose Specialist Cover

Landlords require specially designed insurance to cover all eventualities that might arise when their property is being rented out. If you let a property and try to cut costs by only purchasing standard insurance in your own name, your insurance company may refuse to pay out if a claim is made. Your insurer should be kept up to date with all changes, including change of tenants and periods when your property is standing empty. Many firms, such as UKinsurancenet offer specialist landlord insurance that will cover the building, your liability and potential loss of rent. It’s very important to shop around, as the extent of the cover and the premiums will vary between providers, and the cheapest deal isn’t always the best one. Choose the cover that is most suitable to your individual needs, and remember that a casual attitude to insurance may harm you financially in the future.

Quote and apply online from UKinsurancenet's wide panel of providers for specialist Buy to Let insurance with low discounted premiums.

 

Protecting Your Property

The property you choose to rent out is a very valuable asset, and should be covered by buildings insurance. This will protect you financially from damage to the structure of the building, and the fixtures and fittings inside. In the case of fire, flooding or a storm, no property is immune to this kind of damage. The ‘sum insured’ is the maximum amount you can claim if your property is completely destroyed. If the sum insured is too small, you may have an insurance shortfall in the event of a claim. If it’s too large, you may end up paying more for your insurance coverage than you really need to. The sum insured should reflect the costs of rebuilding the property, not its market value.

Contents Insurance and Rent Guarantee

If you plan to let your property furnished, contents insurance is essential. You should be able to select an appropriate sum based on the value of the furnishings in your rental property. Belongings should be insured on a new-for-old basis, and it’s also worth considering adding accidental damage cover. Rent guarantee insurance is also necessary for landlords, as it will protect them for an agreed period of time, if the tenant stops paying rent. This insurance provides a financial lifeline to landlords who find themselves in disputes with tenants, where rent is being withheld.

Quote and apply online from UKinsurancenet's wide panel of providers for specialist Buy to Let insurance with low discounted premiums.