Career or Reluctant Landlord – Making Sure you Get the Right Cover
Due to the economic crisis which started in 2007, renting a property has now become much more popular than buying one. Many people are struggling with money and the last thing they want is to be saddled with a mortgage to go with their other debts. For this reason, along with the unstable housing market, renting a property is now the preferred route for most people. Because renting properties has now become so popular, it presents a significant opportunity for those who want to buy property to let.
Whilst some people can be daunted by the prospect of becoming a landlord, the truth is it is an excellent way of making money from your property. There isn’t too much admin involved with renting out your properties – of course they must be properly maintained and you must ensure your tenants comply with your requirements – but other than that there is not a great deal to it.
One area that can be slightly confusing when you’re new to letting out your property is insurance. If you own property, no matter what type of property it is – it must be covered by building insurance. Having building insurance means you are covered for any damage that occurs to the building from events such as floods, fire or earthquakes. If you are letting your property then you must get a higher level of coverage to allow for the increased level of risk. Buy to let insurance cover, or landlord’s insurance who provide an online comparison service) , can cover you for several different scenarios. The level of coverage you choose to get is up to you but obviously the more you choose to cover the safer you’ll be. Below are the main things you can get cover for as part of your buy to let policy
- Contents Cover – Contents cover, as the name suggests – covers the contents of your property against theft or damage. This is a must if you let property fully or partly furnished. Often the contents of a property can be very valuable, especially for upmarket properties so it’s very important to be well covered.
- Landlord Liability Insurance – This will cover you in the event of a tenant making an injury claim against you. With litigation being so heavily encouraged now, it is very wise to take out this cover with your policy.
- Building Insurance – As discussed earlier – building insurance will cover your properties against structural damage and provide costs for any needed repairs.
Getting a Quote
Whilst there is quite a lot to think about when deciding on the level of coverage to get, getting a quote for a policy is very quick and easy. There are many excellent insurance providers online and you can get a quote within minutes. It’s a good idea to get quotes from multiple companies so you can compare prices.