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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Landlord Insurance Cover Levels
Our landlord insurance is designed to protect your property against insured events such as fire, storm, flood, escape of water, theft, malicious damage, subsidence, landslip or heave.
Covers the main structure of your home if you need to rebuild or repair it.
up to £1 million
(eligibility criteria applies)
Covering the value of all your possessions in the home, on a new for old basis. As standard, our buildings insurance provides up to £7,500 of cover for your landlord contents. If you choose to add contents insurance, we provide up to £30,000 as standard.
up to £30,000
Loss of rent
We’ll cover lost rent if your tenants can’t live in the home due to an insured event.
up to £30,000
Covers emergencies that occur in your home like uncontrollable water leaks, electricity failure, faulty locks and vermin infestation. Two levels of cover are available.
up to £500
Family legal protection
Provides a 24/7 legal advice helpline and up to £25,000 cover for claims involving contract disputes and property damage. For a claim to be successful, there must be reasonable prospects (more than a 50% chance) of winning the legal case. Two levels of cover are available.
up to £25,000
Trace and access
Covers the cost of detecting the source of a water or oil leak and repairing any damage caused in the process.
up to £10,000
Covers rebuild or repair of your outbuildings (such as detached garages, greenhouses, sheds and summerhouses).
Liability cover involving accidental death, bodily injury or illness or property damage that you are legally liable to pay.
up to £5 million
Landlord Legal Protection with Rent Guarantee
This is optional cover, tailored for landlords, which replaces the Family Legal Protection which is included as standard. It provides a 24/7 legal advice helpline and up to £50,000 cover for claims relating to the letting of your property including repossession, property damage, recovery of overdue rent and payment of rent arrears during an eviction process. Protection provided only when more than a 50% chance of recovery.
Covers situations when unexpected accidents happen, such as spillages on the carpet, breakages around the house or drilling through hidden pipes. Two levels of cover are available.
What’s covered by HOME insurance with business use?
Home insurance provides financial protection if you need to repair your home or replace your belongings after they’ve been stolen, damaged or destroyed.
It comes in two parts: buildings insurance (cover against damage to the property itself) and contents insurance (for damaged or stolen items within the home). These can be combined or bought separately, so the first step is deciding which option is better for you.
What we offer
Quick home emergency response times
Have a home emergency, such as electricity failure, faulty locks or vermin infestation? With the 24/7 Home Emergency cover, which we provide as standard, you can typically get an engineer at your home within four hours. And if you’re worried about an uncontrollable leak in your home, we aim to have an emergency plumber to you within two hours.
Extreme weather conditions may extend response time. Policy terms and claim limits apply.
5 star rated buildings cover
Our building insurance has been given the highest rating by independent financial research companies, Defaqto and Moneyfacts.
Any buildings work we undertake is guaranteed for 24 months following a claim and any contents repair work we undertake is guaranteed for 12 months.
New for old
Where we replace an item, we will do our best to meet the original specification on a ‘new for old’ basis. If we can’t find an exact replacement, we’ll offer you a suitable alternative, or a full cash settlement.
We provide Legal Protection cover as standard, giving you access to telephone legal advice on any personal legal issue, under the laws of the UK, any European Union country, the Isle of Man, Channel Islands, Switzerland and Norway.
What isn’t included?
Damage cause gradually, or by wear and tear, or by failure to fix a known issue.
Faulty design or poor workmanship.
Theft, vandalism or accidental damage caused by a paying guest.
The cost of repairing or replacing items following a mechanical or electrical fault.
Your Questions Answered
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.
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.
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.
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.
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