When you have invested the significant sum it is likely to have taken to acquire your buy to let property, one thought uppermost in your mind is how best to protect it.
Since the answer is likely to lie in some form of property insurance, what might you want to compare with landlord insurance?
The most appropriate insurance for the job
- from standard home insurance, to commercial property insurance, from holiday let insurance to unoccupied property insurance, there is a bewildering array of different types to choose from – and landlord insurance (or buy to let insurance as it is also known) simply adds to that long list;
- so the very first comparison you need to make when choosing cover for your let property is that it is, indeed, landlord insurance and not some other type – choose the wrong type, and you may find the insurer within its rights to reject any claim you might later need to make;
Comparisons the easy way
- in such a very crowded market, with so many different types of insurance, a variety of policies and competitive pricing from one insurer to another, it is often difficult to make accurate or meaningful comparisons;
- that’s why we are happy to do all the hard work for you – here at Cover4LetProperty, we make the comparisons for you, based only on those types of cover you actually need and with an eye on competitive pricing;
Inclusions and exclusions
- of course, it is important to compare like with like when carrying out any exercise such as this;
- when you want to compare landlord insurance, it is even more important to examine closely what is included and what is excluded;
- exclusions tell you what risks are not covered, of course, but there is a related consideration, often referred to technically as “warranties”, which may make one policy considerably less comprehensive than another;
- an example might be the level of security needed to protect against theft loss or damage – if the warranted measures are not taken, the insurer may refuse to pay any associated claim;
Malicious damage by tenants
- however careful your selection and referencing safeguards, there remains a risk that rogue tenants cause malicious damage to your let property;
- by no means all buy to let insurance policies provided cover against such risks, so when you compare landlord insurance quotes, it may be important to settle for one that does – since the cost of repairing any damage done might easily exceed the amount of any deposit you have taken (but do note that even with this cover, there may be upper limits to how much the policy may pay out);
Loss of rental income
- most landlord insurance policies include some degree of compensation in the event of an insured incident causing such damage that the premises are no longer habitable until repairs or reinstatement has been made – circumstances in which you suffer loss of rental income;
- the amount of compensation or the maximum period for which it is payable, however, may vary widely from one policy to another;
- you might want to check carefully the limits attached to such compensation for loss of rental income, therefore, when comparing different buy to let insurance policies;
Landlord’s liability insurance
- it may prove even more important to compare the maximum amount payable by your insurer in the event of landlord’s liability claims;
- these may arise from allegations of your negligence, as the landlord or property owner, in your duty of care to take all reasonable precautions against your tenants, their visitors, your neighbours or even members of the public from suffering an injury or having their property damaged through some incident involving your let property;
- incidents might range from, say, a minor trip resulting in slight injury, to a major fall resulting in serious injury or even death;
- in the latter case, of course, the injured party’s claim for compensation may be very substantial indeed;
- for that reason, a minimum of at least £1 million indemnity is typically provided, but you might want to compare landlord insurance policies more carefully if the assessed risks are greater;
- finally, you might want to compare policies in the event of the worst happening and your needing to make a claim;
- does the insurer handle the claim directly or is it outsourced to a third-party claims handling service?
- by the same token, you might want to do a little more research in establishing just how effective the claims handling service is – what do other customers have to say about it for example;
- the claims process is rarely a straight forward process and more complicated claims may soon get bogged down in interminable delay and correspondence, so the kind of help we provide here at Cover4LetProperty in making your claim might prove invaluable.
There are many features you might want to take into account when comparing landlord insurance policies – so it is probably worth getting all the help you can in completing that exercise.