What Is A Uk Buy To Let Insurance Product?
Buy to let insurance is a type of UK Property Insurance
designed for landlords who wish to protect their
Investment Properties. The product normally caters
for a range of scenarios including a simple flat
rental up to a larger block of flats shared by a
number of tenants. The primary objective is to cover
the cost of rebuilt in case of disaster such as
fire or other major incident that would cause a
complete rebuilding of the property. In addition
the standard policies also include cover for flood
Once you have located the property and obtained
a mortgage, the mortgage company will use you require
written confirmation that the building is insured
using a suitable landlord buy to let insurance policy.
They will usually insist that the
lender is a recognized member of the council of
mortgage lenders and therefore provides a satisfactory
level of insurance cover a protection for the landlord.
Some policies of the optional feature of empty properties
between different tenants were natural void periods
occur. It is important you check whether or not
your individual insurance company or broken and
is providing this optional otherwise your building
may not be protected when you assumed he might have
It is important that the landlord estimates the
correct rebuilding cost of the property when insuring
it so that there is another shortfall. Some policies
include options for contents cover if the landlord
is renting the property in a furnished state to
the tenants. This includes cover for items such
as carpets, white goods, TV, Beds and other large
expensive items. These may become damaged or broken
due to accidental usage by tenants or just simple
wear and tear.
Another important area of cover is the landlords
liability in respect of the tenants and their safety
for instance if they tenants were injured as a result
of some form of negligence such as a faulty gas
boiler or broken stare the landlord liability elements
of the policy is designed to award monies to their
Tennant. The contents of the tenants are not usually
covered by a landlord insurance UK policy, instead
the tenants are expected to pay for and protect
their own belongings in the event of theft or damage.
Not all interest groups will be covered by insurance
companies such as DSS or student renters.
Another useful optional feature of a buy to let
insurance products is cover for the potential loss
of rental income due to unforeseen circumstances.
This is not only known as rent guarantee insurance
and can be sold individually or as part of an optional
extra within we buy to let insurance policy. Assuming
a proper credit check and tenant referencing checked
has taken place prior to the tenant entering the
property this form of insurance is not normally
required as standard . Normally this period is capped
at three months anyway. Lastly a more practical
option is the emergency assistance cover which will
provide a specific amount following the damaged
as a result of a repair to an appliance such as
the central heating system, drains, cooker or other
area of the property of requiring professional emergency
maintenance and assistance.
The average cost of a buy to let insurance policy
varies between Britain and lender that century the
factors determining the price are postcode driven
as well as the information provided by the applicant
in terms of their suitability to risk, and lastly
the physical condition of the property. The UK buy
to let insurance market has been around now for
20 or so years and the range of products is vast.
Most products can be obtained on line with the immediate
cover if you are in no hurry... For instance if
you are about to complete a purchase on a new Rental
Property as the landlord, and need immediate cover
for next day protection of the asset.