Snapping up what seems to be a bargain for cheap home insurance for landlords may be all very well – provided, of course, that it doesn’t turn out to be a mistake that could cost you dear.
Your buy to let property is probably one of your biggest assets and the rental income it brings in may be an important part of your livelihood.
Let property insurance may help protect that income stream but only if it provides the financial assistance you need and when you need it.
There are two main components.
Buy to let buildings insurance
This cover typically provides protection for the fabric of your property against events such as:
- fire or smoke damage;
- flooding or storms;
- there are also some policies around which cover subsidence as standard (such as ours).
In the worst case, landlords building insurance may need to cover the complete rebuild of your property.
Landlords buildings cover may also incorporate public liability insurance.
This provides financial support in the event that someone sues you for damages as a result of injuries they may have sustained whist on your property. You may find that with some cheap home insurance for landlords they may have an unrealistically low payout limit, which could leave you personally liable for any shortfall.
Contents insurance for buy to let landlords
This is an optional component of let property insurance and if you let your property out unfurnished then you may not need it at all.
If your property is a furnished rental, then landlords contents cover may be worth considering and it is typically available in two forms:
- new for old cover, where provision is made for a brand new replacement of your item;
- market value replacement, where you receive compensation equivalent to the second hand value of your item.
The level of cover most appropriate for you will depend on how you value your contents and how you view the prospect of having to replace them out of your own pocket if the need arose.
Cheap home insurance for landlords may provide only market value replacement, which may not be what you are looking for if your rental is furnished to a high standard. Finally, do remember that what you think is cheap landlords insurance may not be cheap for someone else – and vice versa. It all depends on your own particular circumstances and requirements.