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  • Writer's pictureThe Cedar Crest Team

Landlord Insurance, are you covered?

Unexpected incidents could leave you seriously out of pocket


“If you own more than one buy-to-let property, you may be able to get one policy to cover them all.”

IF YOU’RE PLANNING to buy-to-let, you’ll need special landlord insurance. Buy-to-let properties aren’t covered by normal home insurance, since they carry more and different risks. Therefore you will need a special type of insurance designed for landlords.


A buy-to-let policy covers your legal liabilities and protects your investment from the risks you may face when letting or leasing a property that standard home insurance may not cover.

 

PROTECTION FROM HEFTY REPAIR BILLS


If there is major damage to your property, like a burst pipe or a fire, the onus is on you to pay the bill. Repairs for a burst pipe could run into thousands of pounds and a fire could destroy your property. Having insurance would protect you from hefty repair bills. Buy-to-let policies include property owners’ liability cover, employers’ liability insurance and buildings insurance. They also include loss of rent cover, which will protect you if your property surfers damage and becomes uninhabitable as a result.

 

RENTING OUT PROPERTY CAN BE A RISKY BUSINESS


If you’re a buy-to-let landlord, you’ll need more than just home insurance to protect your property. Renting out property can be a risky business, so while you’re not legally required to have landlord insurance for your buy-to-let property, you’ll need to be properly covered if anything goes wrong. Without the right cover, unexpected incidents could leave you seriously out of pocket. You can also choose from several optional covers, for example, accidental damage, loss of rent, employers' liability, landlord emergency and legal expenses cover which covers the costs and expenses in dealing with a range of legal matters such as contract disputes, tax and VAT investigations, repossession and eviction of squatters.

 

DECIDE HOW MUCH YOU CHOOSE TO PROTECT


If you own more than one buy-to-let property, you may be able to get one policy to cover them all, which can be much easier to manage. One policy can cover as many as 15 properties initially, and you may be able to add more during the term of your policy. The cost of your landlord insurance will depend on the property itself, the types of tenants you’ll be renting it to and how much you choose to protect. Naturally it will be more expensive if you go for the maximum cover level with the minimum excess option.


 

>> STILL GOT QUESTIONS ABOUT BUY-TO-LET INSURANCE? <<

If you’re an existing landlord of a residential property, or are looking to buy your first investment property and need more information, to discuss how we can help you, contact us –UK +44 (0) 203 883 1017 Hong Kong +852 6017 4140 – email info@cedar-crest.co.uk.


Your home may be repossessed if you do not keep up repayments on your mortgage.

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