When you’re a landlord, you need slightly different insurance to your usual residential insurances. Some of these may be a requirement of your lender, so it’s important to know about each of them and what they can offer.
Landlord building insurance
This will protect against any risks to the building that might result in replacement or repair work e.g. subsidence, fire, burst pipes etc. This is often a must-have for many lenders.
Landlord contents insurance
Contents insurance for landlords, like for your home, is optional. It will cover you against any fixtures and fittings you have supplied i.e. fridge, washing machine, carpets etc. not the belongings your tenants put in the building. You can extend this to include accidental damage, if you wish to.
If you own five or more properties then this could be a good option. It enables you to cover the buildings and contents (if you want it to) of all the properties you let out, under one policy.
Home emergency cover
This is an optional, extra insurance as an addition to the standard buildings insurance. It can provide emergency assistance for the landlords, should you need certain services e.g. plumbing and heating, roofing, drains and sewer blockages, lost keys, infestations etc.
There may be times when your tenants can’t make their rent payments. Rent guarantee insurance will protect you from this loss, and will pay out the rent you are down by.
Legal expenses cover
This will provide you with legal protection should you need it for any of the following: property damage, recovering rent arrears, repossession, prosecutiondefence costs etc.
Please feel free to get in touch with our friendly team to find out more about buy-to-let insurance.
There is no guarantee that it will be possible to arrange continuous letting of the property, nor that rental income will be sufficient to meet the cost of the mortgage.
Your property may be repossessed if you do not keep up repayments on your mortgage.
There may be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances. The fee is up to 1% but a typical fee is 0.3% of the amount borrowed.