| Rental Property Insurance UK What is the best type of Insurance for Landlords? - A subject that often causes confusion to new Landlords is exactly what type of rental property insurance they should arrange to cover their Buy to let property. Firstly, anyone borrowing money to pay for a property, will be required to effect Buildings Insurance cover buy the lender to cover the cost of the loan. They will also want their interest noted on the policy to satisfy the contract rights act.
Buildings Insurance is essential for everyone though and it is relatively inexpensive. The perils covered by a rental property insurance uk policy are similar to a standard home policy but it will be noted that the property is let out. Typical perils covered are as follows; Fire, Lighting, Explosion, Earth, Storm, Tempest, Flood, Landslip, Subsidence, Heave, Impact, Burst Pipes, Riot, Civil Commotion, Falling Trees, Accidental Damage to fixed Glass in doors and Windows .Optional Accidental Damage.
A buy to let insurance policy will also include, cover in respect of loss of Rent, that is loss of rent by peril ( If the house has to reinstated following a fire or flood etc) and property owners liability ( Sometimes referred to as Public Liability.)
Most policy wordings will have suitable endorsements on them noting that the property is let out and remember to watch out for occupancy terms & conditions, you may find that if the property is unoccupied in excess of 30 days, certain cover restrictions will apply. Premiums do vary depending on your sums insured, location and tenant type so it is a good idea to shop around.
It must be remembered that if you are buying a Flat or Apartment, it is usual for the Freeholder to arrange the Buildings insurance and charge you a proportion of the total amount payable. Ask your solicitor to check, you don't want to end up paying twice.
If you are going to put Contents in to the property, you may like to consider Landlords Contents Insurance ( The tenant will be responsible for their own property). One of the advantages of Contents Insurance is that you will obtain Public Liability cover, this cover relates to your ownership and supply of contents in the property. Some Insurers will not offer Contents Insurance in isolation and it is normally quite cheap if you add it on to a buildings insurance policy.
These two contracts are the two most popular policies purchased by landlords, you can obtain extra cover for Rent Guarantee ( In case the Tenant doesn't cover you). Legal Expenses ( covering a wide range of scenarios, including tenancy dispute) and Emergency Assistance ( covering domestic emergency at the home). What you decide to buy is very much a matter of personal choice and of course to suit your individual pocket.
Landlords Gas Safety Check - If you are a landlord and are purchasing a property for buy to let rental purposes, you must make sure that certain checks are carried out prior to the building being rented out. Probably the most important checks relate to the use of gas equipment and these checks must be carried out in accordance with the Gas Safety ( Installation & Use) Regulations 1994. Failure to have your gas installations inspected may result in a fine of up to �5000.00 per incident. In the event of a serious incident at the property, if you cannot produce the necessary certification, you could face manslaughter charges and a period in prison. Inspections are carried out by CORGI registered engineers and a letting agent may be able to advice you of a firm to use or you could try your local Thomsons or Yellow pages. The engineer will carry out the inspection and will provide you with a official certificate of his findings. One copy is for you to keep safe, the other must be given to the tenant to be kept in the property. Providing the inspection certificate will not suffice on its own and you should make sure that your tenant is furnished with all guide books and instruction manuals so as they may operate the equipment in a safe manner. Most inspections will include an examination of the building flues but only to conclude that they will allow for satisfactory evacuation of combustion products. This will be satisfactory to comply with the law, if you want a more detailed internal examination of the flues noting the flue integrity and condition of the construction and lining, you will have to pay extra. The certificate you will be provided with, will give you various information. The engineer will have to list the various appliances at the property and he will have to state the following:- -
The location of the item within the building -
The type of appliance -
The make -
The model -
The flue type in use for each item -
The operating pressure in millibars -
confirmation that a safety device is in operation -
confirmation that the ventilation is adequate. -
With regard to the actual inspection itself, the engineer will have to report the following. -
Confirmation that the relevant flue has passed a flue flow test. -
Confirmation that the flue has passed a spillage test -
Confirmation that the termination is satisfactory -
Confirmation that the item passes a visual inspection
When this section of the report has been completed, the engineer will have to indicate in writing that the appliance is safe to use.When producing his report the engineer will also provide you with a list of items that are faulty and that require to be fixed. In some cases these will not render an appliance dangerous but they will still need to be attended to. In extreme cases, where an item is dangerous, the engineer will have to produce a warning notice to be attached to the item. These gas safety checks are vitally important for buy to let landlords and they need to be carried out once every 12 months prior to a property being let and certainly before a property is let for the first time. The courts take a very dim view on any landlord that has compromised tenant safety by not having the relevant checks carried out.
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