Whether you are an experienced property investor or a first time landlord, buy to let insurance may be something that you wish to consider. You may even find that your obligations to third parties may mean that you have to get a landlords insurance quote.
Is insurance a mortgage requirement?
If you bought your buy to let property with a mortgage, you may wish to check the conditions of your agreement with the bank or building society. The lender may insist that you insure the property using a suitable product. After all, the property is what secures the loan, so the lender is keen to make sure that you would have access to the funds to rebuild the property should it burn down, for example. Some lenders may even insist that you take out insurance in joint names (you and the bank) to protect their interest.
Requirement of the lease
If you already have a tenant, you may find that the lease itself obliges you as the landlord to have adequate cover in place. This is because your tenant pays you rent to provide them with a home. If the building burns down and you do not have the money yourself to rebuild the property, the tenant would not be able to live in it.
General common sense
It may also be a matter of general common sense that buy to let cover may be a good idea. After all, whether you have a large portfolio of let properties or whether you have got one unit for a nest egg, the investment may be important to protect.
What may you wish to take into account?
When you are looking around for landlords insurance quotes, you may like to bear in mind:
- the extent of the cover available with each provider. Some may offer cover for more risks than others. The core risks that may be included may be fairly standard from provider to provider, but the unusual ones likes subsidence and malicious damage may receive different treatment depending on which provider you speak to;
- the level of service you may receive; and
- whether empty property cover may be of use. Properties may be considered “empty” if they are left unoccupied for 30-45 days or more. If you let your properties to students, this may be an issue during the summer vacation. While you are getting a landlords insurance quote, you may wish to check how long each provider will let the property remain vacant before they consider it “unoccupied” for these purposes.