What is buy-to-let insurance?
If you are a landlord who has bought a property specifically to rent it out then you are probably no stranger to shopping around for the best buy-to-let mortgage. The same should be true of your property insurance.
Although it’s not a legal requirement to have buy-to-let property insurance, your mortgage company may require it and there are obviously several specific risks you face as a landlord when letting out a house.
What does buy-to-let insurance cover?
You need to protect your investment, and normal residential home insurance is just not suited to your situation.
What if there’s a burglary? Or your tenants refuse to pay rent? As well as the buildings and contents insurance, you will need to think about loss of rental income and the risks for which you are liable when letting your property to tenants. Also, remember that any tenants ought to get contents insurance themselves as their belongings will not be covered by your landlords insurance policy, especially if it’s an unfurnished let.
Nowadays house shares are more and more common. If you are letting a property with multiple occupants (one that has three or more storeys with five or more residents), then you will need to obtain an HMO licence from the local council. You must also have extra measures in place when it comes to fire safety, as these types of properties are typically at more risk than a family home.
As a buy-to-let landlord you need to consider the possibility that your property will be left unoccupied for several weeks or even months of the year, particularly if you are renting the house out to students. You also need to think of the impact that tenants can have; as you cannot physically supervise your tenants 24/7 you cannot guarantee that your property will be well looked after. Accidents can happen!
How HomeProtect buy-to-let insurance is different
With HomeProtect buy-to-let insurance, it doesn’t matter what type of property you own, where it is located or even how many residents are living there. When it comes to providing the right level of cover to suit your individual circumstances, we ready to provide a quote.
Does buy to let insurance cover against legal claims by tenants?
If a tenant were to injure themselves as a result of a problem with the property, such as tripping over loose flooring, as the landlord you could be held responsible. In these circumstances, buy-to-let insurance will cover the cost of compensation claims and legal fees.
It depends on the reason that you have lost rent. If your tenants have to move out after a fire or a flood, for example, you should be covered for the rent that you lose as a result. It can also cover the cost of arranging alternative accommodation for your tenants.
HomeProtect offers up to £30,000 per claim, on the basis that there is a contract in place clearly detailing the amount of rent due.
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Buy to let landlord insurance FAQs
How many rental properties can HomeProtect cover?
Portfolios of properties cannot be covered by one single buy-to-let insurance policy with HomeProtect. Therefore, only one property can be covered under one policy and separate cover is required for further properties.
Does the policy include accidental damage cover?
Yes, it can cover the cost of repairs or replacement in the case of accidental damage to the building or contents. The damage must have occurred by accident, and not on purpose.
Am I covered for all types of tenancy?
The only kind of tenancy that is covered by HomeProtect’s buy-to-let insurance is private tenancy. This means a private agreement between the homeowner and their private tenant. Houses in multiple occupation, or rented for commercial use are not covered.
Can contents cover be added if the property is fully furnished?
Contents insurance is recommended if the property you let is furnished. You are only responsible to insure your own furnishings and belongings, however, as it is the tenant’s responsibility to cover their own contents.
£7,500 of contents cover is included with a HomeProtect buy-to-let policy. If you require more, you can increase your cover under a building and contents insurance policy.
Does buy-to-let insurance include owner’s liability cover?
Yes. As the owner of the property, you are responsible for the maintenance and upkeep of it, ensuring it is safe to live in and is not in a state of disrepair. If a tenant is injured, or their property is damaged, either on or in connection with your property, you could be liable to pay compensation. Buy-to-let insurance can help to cover these expenses.
We've insured our home with HomeProtect for 5 years now and have been consistently impressed by the service. This year we needed to change some details which was a very straightforward process and we revived our updated paperwork promptly. I'd highly recommend this company! Trustpilot, 16 February 2017
The guy I spoke to was so helpful - best experience ever of speaking to an insurance salesman. Trustpilot, 16 August 2017
All staff that I had spoken to were professional, had good open communication and clear with the policy. All terminology was explained and time taken to answer any questions. No concerns. Would recommend to others. Trustpilot, 28 June 2017