Choosing Buy-To-Let Property Insurance

Risk is an area often overlooked by landlords, but failing to protect the main assets of your business, which often have borrowings secured against them could lead to ruin.

Landlords often fail to understand the types of insurance risks that they are exposed to and are unaware that insurance coverage for buy-to-let investments is very different to the standard household insurance policies that cover owner-occupied dwellings.

Therefore, landlords are advised to seek the services of specialist insurance companies catering for the buy-to-let market.

Essentially there are five broad categories of landlords insurance:

-- Landlords buildings insurance

-- Landlords contents insurance

-- Emergency assistance

-- Legal expenses insurance

-- Rent guarantee insurance

Landlords buildings insurance

These are the core policies and will generally provide coverage for a number of perils including fire, flooding, burst pipes, malicious damage and owner's liability.

It is worth checking the policies of each insurer as the perils covered may vary. Other issues to be aware of are the amount of money the insurance company will pay out in the event of damage occurring, types of tenants (student tenants are perceived to be higher risk) and consent to let from your mortgage lender, as failure to gain consent will render your insurance void in the event of a claim.

Landlords contents insurance

Many landlords insurance specialists will offer the option of limited or full contents insurance.

Limited contents policies are designed for properties that are let unfurnished or part furnished. A typical policy would provide cover of up to £5,000 for items such as curtains, carpets, white goods and light fixtures. Most policies will also provide employers and landlords liability cover in relation to these products.

Liability cover is important, as the number of personal injury claims relating to contents has risen at an astonishing rate since the 1990s, with awards in excess of £100,000 not uncommon.

Full contents policies are for fully furnished properties or for limited contents that would cost more than £5,000 to replace. When applying for full contents insurance, ensure you value the contents for the cost to replace them, opposed to the actual value that you think they are worth.

Emergency assistance

Cover is provided for general property emergencies, such as failing electricity supplies and cooking facilities, plumbing problems, leaking roofs and guttering, and damage to doors and windows.

Typical policies will provide parts and labour up to a specified cost, along with a 24-hour call out helpline number.

This sort of insurance is most suited to landlords who do not live near their property and have not contracted their managing agent to provide such a service.

It should also be noted that these policies only cover emergency call-outs and are not a general repair service required through lack of routine maintenance.

Legal expenses insurance

Problems can always occur with tenants and in many cases it is a change of personal circumstances such as job loss, accident or illness that will affect the tenants ability to pay rent or look after the property correctly.

Resolving such situations will usually involve expensive legal costs, sometimes running into thousands of pounds and legal expenses insurance is generally recommended.

Rent guarantee insurance

These policies guarantee that rent is received regardless of the tenants personal circumstances or ability to pay. These policies are most useful for landlords who have a mortgage on the property and are relying on the rental yield to service the loan. Policies will often guarantee rental payment for periods of six or twelve months.

Regulation

It is always advisable to shop around for insurance and understand what each policy provides. Always ensure that the insurance provider is a member of the General Insurance Standards Council (GISC) and is fully regulated by the Financial Services Authority (FSA).

Please note that this article is for information and guidance purposes only. With all financial matters you should seek professional advice with respect to your own specific circumstances.

Don Suter is Managing Editor of the UK Property Portal (http://www.ukpropertyportal.co.uk), an online directory and magazine for UK property sales, rental, surveyors, mortgages, conveyancing, property insurance, removals, news, investment and development

---

Will Online Automobile Insurance Quotes Really Save Me Money?

If you're looking to save money on your auto insurance... Read More

UK Young Driver Motor Insurance - Build Your Own No Claims Bonus or Insure through Your Parents

For may young drivers, affording the costs of motor insurance... Read More

Finding Life Insurance Quotes For Adult Children

Shopping for life insurance quotes for adult children isn't any... Read More

Cheap Car Insurance

Finding good car insurance can be very difficult. Here are... Read More

Theres No Problem Getting Texas Auto Insurance in Texas

Everything is big in Texas and so it is with... Read More

What is Consumer-Driven Healthcare?

Consumer-driven healthcare is a label that we've put on a... Read More

If You Rent A Home, Protect It By Buying Renters Insurance

Renters insurance is often overlooked by people who are renting... Read More

Eleven Money-Saving Auto Insurance Tips for Senior Drivers

Following a few simple tips and taking these measures will... Read More

Discount Auto Insurance - Get Low Rates And Superior Coverage

Auto insurance rates can be quite expensive. If you are... Read More

Need A Car Insurance Comparison? Dont Have Time?

If you decide not to do a car insurance comparison... Read More

Are You Overpaying On Your Home Insurance Policy?

For many consumers the cost of daily living is becoming... Read More

Should You Have Higher Deductibles On Your Coverage?

What is a deductible? A deductible is the amount you... Read More

How To Get Cheap Whole Life Insurance Quotes

Whole life insurance quotes the most expensive kind of policies... Read More

Inexpensive Life Insurance To Protect What You?ve Earned

Adequate life insurance to cover your income producing ability is... Read More

Car Insurance Advice for Young Drivers in the UK

Over the course of the last ten years, car insurance... Read More

The Many Benefits of Travel Protection Plans

Many people purchase insurance thinking I want full coverage and... Read More

Business Insurance; Information you will need

When you start a small business you will need to... Read More

Medical Insurance Overseas

Thousands of people have work related commitments and in order... Read More

Why Dont Women Have Life Insurance?

Traditionally, life insurance companies solicited men as the main breadwinners... Read More

Auto Insurance In Texas

If you are looking for auto insurance in texas, you... Read More

Insurance Providers Weather the Storm While Consumers Flounder

We have just had the first year's anniversary of the... Read More

Insurance in Northern Ireland: Historic Difficulties

No doubt most readers will have heard of the Northern... Read More

Converting An Unwanted Life Insurance Policy Into Ca$h

Do You Own A Life Insurance Policy That You No... Read More

Cheap Car Insurance ? 7 Tips To Reduce Your Car Insurance Costs

With the cost of car insurance becoming more and more... Read More

Health Insurance Online - Save Today

It is now possible to thoroughly research and buy health... Read More

Handling Your Motor Vehicle Accident With Your Own Insurance Company

This "How To" article is crucial, up-to-date information concerning what... Read More

How Is Your Auto Insurance Policy Price Determined?

The average auto insurance policy price is derived from a... Read More

Can I Really Get Life Insurance, No Exam Required?

Changing the way that life insurance is bought and sold... Read More

Inside-Information Regarding Your Motor Vehicle Accident Insurance Claim

Here's some "Inside-Info" you must know so you won't be... Read More

Medical Bills - Evaluating Your Personal Injury Insurance Claim

The value of a personal injury claim has a direct... Read More

Guide to Car Insurance

Here is a useful guide to car insurance. Buying car... Read More

The Need For Life Insurance

A person needs to reexamine their life insurance needs every... Read More

Health Savings Account (HSA): Do I Lose It At the End of Each Year?

The Health Savings Account (HSA) is an amazing tool to... Read More