Yes, it is. There are though occasionally some slight differences of context surrounding the use of the two terms.
What is buy to let insurance?
Buy to let insurance is a type of insurance policy specifically designed for property owners who rent out their properties to tenants. This insurance typically covers the physical structure of the property and provides protection against risks such as fire, theft, vandalism, and damage to the building. It may also include cover (if required) for any contents that belong to the landlord, such as furniture or appliances that are provided with the rental property. Buy to let insurance is primarily focused on protecting the property itself and the landlord’s (and the lender’s) financial interests.
Buy to let insurance is commonly used in situations where the landlord is applying for some form of loan or mortgage in order to help them purchase a property. That’s because, in most circumstances, a lender offering substantial sums by way of a mortgage will typically wish to see some form of security over the property concerned.
This is sometimes called a buy to let mortgage and at the outset the provider of funds is likely to insist that you also maintain insurance to protect the building and therefore the asset you have used to offer them security for their loan.
The logic is that if the property was severely damaged and you did not have insurance to pay for its restoration, it may end up being worth considerably less than the sum of money the lender has lent you.
So, insurance is essential if you are to avoid being in breach of your mortgage contract.
What is landlords’ insurance?
Landlords’ insurance is a broader term that encompasses various types of insurance policies designed for landlords. While it includes buy to let insurance, it can also include other types of cover, such as liability insurance. Landlords’ insurance often includes public liability cover, which protects the landlord in case a tenant or visitor is injured on the property and holds the landlord responsible. It can also cover – if required – loss of rental income in case the property becomes uninhabitable due to covered events.
In the context of the letting business itself, established landlords and specialist providers of policies will typically call this area landlords insurance or let property insurance.
This is purely a matter of convention though and as stated above, the terms may be used interchangeably, as they refer to the same type of policy providing the same type of cover.
Note though that landlords unoccupied property insurance is entirely different and something that should be taken seriously in terms of avoiding gaps arising in your property’s insurance.
Owner-occupier cover is, of course, different again.
Buy to let insurance is commonly used in situations where the landlord is applying for some form of loan or mortgage in order to help them purchase a property. That’s because, in most circumstances, a lender offering substantial sums by way of a mortgage will typically wish to see some form of security over the property concerned.
This is sometimes called a buy-to-let mortgage and at the outset the provider of funds is likely to insist that you also maintain insurance to protect the building and therefore the asset you have used to offer them security for their loan.
The logic is that if the property was severely damaged and you did not have insurance to pay for its restoration, it may end up being worth considerably less than the sum of money the lender has lent you.
So, insurance is essential if you are to avoid being in breach of your mortgage contract.
In the context of the letting business itself, established landlords and specialist providers of policies will typically call this area landlords insurance .
This is purely a matter of convention though and as stated above, the terms may be used interchangeably, as they refer to the same type of policy providing the same type of cover.
Note though that landlords unoccupied property insurance is entirely different and something that should be taken seriously in terms of avoiding gaps arising in your property’s insurance.
Owner-occupier cover is, of course, different again.
