If you're looking to purchase landlord insurance you will find it a little bit more tricky than conventional home insurance, because many of the large mortgage providers do not provide cover for property that is rented out to tenants. if you are new landlord just completing a mortgage, your lender will require you to provide proof that you have arranged adequate landlord insurance. In particular they will want it noted on the mortgage that the property is being used for landlord purposes. The maturity of the UK buy to let market means that there are now a large number of landlord insurance providers. This means that sourcing an appropriate landlord insurance policy, that means your individual needs, is a fairly straightforward process. many insurance companies sell policies over the phone or online with credit card. Each buy to let insurance policy has been specifically designed and marketed towards the UK landlord market.
Many landlords choose to rent out their property on a fully furnished basis. To protect the items of furniture provided with rental property, landlord contents insurance is available in most cases, from most insurance providers. generally speaking the maximum amount of contents insurance cover provided is several thousand pounds. This will help to protect such things as beds, sofas, tables, chairs, cutlery, etc. Some landlords confuse which items should be covered as part of the building, as opposed to under the contents element of the policy. These include the bathroom suite and a fully fitted kitchen. most landlord insurance companies consider these items to be classed as contents. This is because most houses are renovated prior to renting the building out to tenants. In addition every five or 10 years landlords need to replace or upgrade bathroom or kitchens due to natural wear a tear from high tenant usage. One of the benefits of taking landlords contents insurance is that it normally comes with liability insurance attached. As all insurance policy that you check the policy wording to see whether not this is the case.
You will not need to procure any tenant's contents insurance because you have no legal interest in these items. Instead of your tenant will have to insure them for themselves. it is common practice that within most assured short hold tenancy agreements, it states that responsibility for providing contents insurance for tenants possessions, relies with the tenant. this could make it to the tenant during the inventory check-in process. It helps to prevent unnecessary should some of the tenants possessions ever be damaged in the future.
One of the various additional options available on most high-street and insurance policies, is that of Rent Guarantee Insurance. This option provides an indemnity if the tenant disappears and you are unable to collect owed rent. This option is usually sold alongside the buildings and contents main policy, and rarely on its own. Most policies provide an equivalent of three months rent.
Another additional option you may consider adding onto your main policy is for Home Energy Cover. Many specialist policies cater specifically for the landlord market. The range of policy covers very considerably. Instance you can purchase cover to pay the cost of servicing gas boilers, or servicing the central heating system, or even plumbing and drains and fixed electrical systems. And maintain is to provide preventative maintenance before problems occur which may cost more in the long run. In particular if radiators leak or pipes unexpectedly burst, water damage can cause considerable hassle and cost to landlords. often tenants are away working so water damage costs escalate considerably. as many companies provide stand-alone policies as well as additional options to the mainland or insurance contract, it is advisable to read the Policy Document and Key Facts leaflet carefully before you part with your money.
Lastly many landlords are choosing to take out a legal expenses insurance option, on top of their normal landlord buildings and contents insurance policy. This option aims to pay for the unexpected cost of legal services for the landlord. For instance the landlord may find themselves the subject of a complaint from the tenant or third-party, and require a professional legal defence. It is also invaluable in situations where eviction proceedings need to be formally pursued through the courts. Letting property is now fraught with legislation and complaints from tenants against landlords are fairly common.