Headlines proclaiming the merits of cheap buy to let insurance are all very well. It is only when you look at the cover provided in some detail though, that you can decide whether or not it is something that offers the most suitable landlords cover for you:
- the amount of landlord insurance buildings cover you opt for may be a contributory factor in the price of your buy to let cover. This ideally should be sufficient to cover all of the costs including architects, surveyor, legal fees, searches and site clearance etc, of a complete rebuild of the property;
- it may be important to note that the amount of your buildings cover may not be the same as any mortgage held, your buying price or indeed what you could expect to sell the property for – so getting professional advice on a suitable level might be a sensible idea;
- if you were sued by someone who was injured while on your property, then your public liability insurance (typically included with landlords buildings cover) would potentially cover any damages awarded by a court. Some buy to let policies may have less generous provision in this respect than others and it is up to you to decide whether the level being offered is suitable for you or not;
- similarly, not all buy to let insurance may offer to cover legal fees incurred in this sort of situation. It may be worth bearing in mind that legal fees arising from eviction proceedings or to recover rent arrears, may typically always be the responsibility of the landlord;
- a cheap buy to let insurance policy may provide only for market value replacement of your contents. You may have to pay a bit more for new for old cover, which may still seem cheap to you when compared to the value of your contents;
- not all landlord contents insurance policies may offer the same levels of cover for some high value items like entertainment systems, computers and the like. Cheap buy to let insurance may have upper value limits that may (or may not) offer adequate cover in your particular circumstances;
- unlike our let property insurance policies, which offer a wide range of protection, not all landlords insurance offers subsidence cover as standard. Checking to see if a cheap buy to let insurance policy includes this as standard may make sense;
- losing income if your tenants have to move out while repairs are being carried out after damage resulting from an insured event like fire, earthquake or flooding, may be avoided if your cheap buy to let landlord insurance will compensate you for loss of rent incurred in these circumstances.
Cheap buy to let insurance may give you the cover you need for your buy to let property. It is equally possible though that it may fall short of giving you the protection you expect should something happen and you had to make a claim. When choosing buy to let property insurance, making an informed choice typically makes sense.