If you are letting a property then consider taking out insurance for let properties.
If you own a property, you might usually become a landlord if you:
· if you let the house for rent while you live somewhere else on a temporary basis;
· you rent out even just a room in your property; or
· you have inherited property and wish to rent it out to make money from it.
While you might usually not think of yourself as a typical landlord, you may still have the obligations and responsibilities that go with the role.
The costs of property ownership
Sometimes as a landlord it may feel as though you are paying out as much money as you are receiving in as rent. With tax, managing agents’ fees and the cost of compulsory electrical inspections, there always seems to be a bill to pay. So you may wonder whether insurance for let properties is just another drain on your finances and may opt for cheap landlord cover without really checking that the cover is right for you.
However, having the most appropriate buy to let cover in place might typically be very important. Give some thought to what would happen in the worst case scenario and your property was destroyed?
Rather than viewing insurance for landlords as a tiresome extra bill, the policy may provide you with:
· security by giving you peace of mind;
· financial security that your letting business may generally not be destroyed even if the property is;
· compliance with your mortgage lender’s requirements to get building and contents insurance (a common condition of mortgages); and
· a way to meet any landlord’s obligation you may have in your lease to insure the structure.
How do you find the right policy?
There are many things to consider when you go looking for a policy. As your time is valuable, you may generally wish to consult a specialist let property insurance website to get access to some suitable deals.
Insurance providers will need to take information from you to ensure you have the right policy. This will typically include the address of the property and details of its construction, together with some information about whether there have ever been might typically have been claims on the property before. The insurer may also want to know about the current tenants, as their identity (as in whether they are professional, retired or students etc) may also affect the premium.