Before you decide whether or not to go ahead with your buy to let landlords insurance quote, it may make sense to ensure that the policy gives you the let property insurance that is most appropriate for your circumstances:
- if you have a buy to let mortgage, your loan agreement may require you to have landlords buildings cover. An important point to note, however, is that the value of your buildings policy may not necessarily be the same as the amount of your mortgage or indeed the cost of your property itself. Buy to let building insurance should reflect the cost of a complete rebuild, including fees for architects and surveyors, site clearance and legal searches etc;
- not all buy to let home insurance policies cover subsidence as standard. Some policies (such as ours) do however, and these may be worth consideration – particularly if your buy to let property is in a vulnerable area;
- if your property is rented out furnished or partly furnished then you may wish to consider the nature of the contents cover that you may opt for. There may typically be two types available, namely new for old or market value replacement. As it provides new rather than second hand replacements, your buy to let landlords insurance quote may highlight that new for old cover may typically be more expensive than market value cover;
- landlord insurance typically also provides public liability insurance cover. The amount of protection available, i.e. the amount that could be paid out to settle court awards of damages against you, may vary. Opting for a buy to let landlords insurance quote, which has an unrealistically low level of cover, to save a little on monthly premiums, may turn out to be a false economy;
- legal fees may be covered by some policies but not by others and may only be payable in certain circumstances – check the policy wording on this, or speak to your proposed buy to let insurance provider;
- losing rental income if your tenants have to move out after your property is made uninhabitable as the result of an insured risk (fire, flooding etc), may be avoided if you have landlord insurance that provides compensation in these circumstances;
- if your buy to let property is lying empty for a period of 30 consecutive days or more (either while renovations are being carried out or while you are waiting for new tenants to move in) then it potentially renders your existing landlords insurance invalid. You will typically require unoccupied property landlords insurance in circumstances such as these.
Getting one buy to let landlords insurance quote may not be as useful to you as getting a few. It is only when you compare landlords insurance and see what’s on offer that you can identify areas of difference and select the options that are most appropriate for your own particular situation.