If you own buy to let property, landlord insurance is more or less bound to be a concern. You will want the cover to provide the protection and safeguards you need but at a competitive price.

So, let’s take a brief look at the typical profile of landlord’s insurance, how to home in on cheap landlord insurance quotes, and while we’re at it, also consider some of the other common issues landlords invariably find themselves thinking about.

Typical landlords insurance

At the core of the typical landlord insurance package is cover for three broad elements:

• cover for the building;
• cover for your contents; and,
• landlord liability indemnity insurance.

For anyone running a business, taking care of the tools of your trade may be your number one priority. If you lose these or they are damaged, you may not be able to work and if you cannot work, you cannot earn income.

In much the same way, the building that you rent out is how you earn your income. If it cannot be rented out because it has been damaged, for example, then until you can make repairs your income stream may stop. If your property has been damaged by an insured event, landlord insurance will typically step in to help cover the associated costs.

Landlord buildings cover

• buildings cover, as part of your landlord insurance, can provide financial backup that can help keep any interruption to your income generation as short as possible;
• your buy to let property can suffer damage from a number of events that may typically be covered by buildings insurance – including damage from fire, flooding, storms, lightning, and earthquakes, for example;
• some but not all, buildings insurance policies may also cover subsidence as standard – you’ll be pleased to know that we provide subsidence cover as standard with our let property insurance;
• it is important that the level of cover for any buildings insurance is high enough to provide for the complete rebuild of your buy to let property (plus costs relating to clearing the site, surveyor’s fees etc.) if the damage is such that this is required;

Contents insurance

• the extent to which you may need contents cover as part of your landlord insurance will depend upon whether you rent your property as furnished or unfurnished – if your property is unfurnished then your fixtures and fittings will typically be covered under buildings insurance;
• if your rental property is furnished or part furnished you may opt for contents cover. How much cover you need will depend on the nature and value of the contents;
• you typically have two options – new for old replacement or market value replacement – with the former more expensive than market value replacement for obvious reasons;

Landlord liability indemnity insurance

• as the landlord, you are responsible if anyone is injured or has their property damaged, through some connection with your premises;
• if you are found to be negligent in some way then the awards for damages against you could be substantial and landlord liability indemnity insurance protects you against those potential losses (subject to policy limits, terms and conditions);

Compensation for loss of rental income

• if an insured event leaves your let premises temporarily uninhabitable pending repairs and reinstatement, you stand to lose valuable rental income;
• landlord insurance may incorporate an element of compensation for that loss of rental income.

Cheap landlord insurance quotes

It is important when choosing your landlords insurance not to underestimate the value of your investment and belongings. Not having enough landlord insurance might prove an expensive mistake. If something does go wrong, you may be left in the lurch.

Tempting as it may be – especially at renewal time – to concentrate exclusively on what seem to be cheap landlord insurance quotes, be careful to ensure that they still provide you with the cover that you may expect or need.

So, what may be cheap insurance for one of your contemporaries may not be cheap buy to let insurance for you.

One of the problems with landlord cover that proclaims itself to be cheap is that the price you see may bear little or no resemblance to your final quote. This difference may be due in part to you having to add on features of cover not typically included as standard in cheap landlord insurance quotes.

With other quotes though, you may find that there are a lot of features already included in the price as standard. These may include things such as:

• subsidence, we have mentioned already, and may be included in some landlord insurance policies – such as the ones we have arranged – but not with others;
• similarly, not all policies incorporate compensation for loss of rental income – or, if they do, you might consider it to provide an inadequate level of cover;
• restrictions on the type of tenants you can rent to – some policies may exclude certain categories of tenant, like students or DSS, from their landlord cover;
• cover for malicious damage by tenants may tend not to appear in all landlord insurance quotes but it is available;
• the repair of damage caused by tradesmen trying to locate the source of a problem may not always be included in some buy to let house insurance. The cover is known as ‘trace and access cover’ and may be applicable in cases, for example, where there is a leak behind a wall. Having your leak repaired but being left with a hole in the wall to deal with may not be your idea of appropriate insurance cover.

You will be pleased to know that when you get a buy to let insurance quote from us, the price will typically include all these products and features as standard, so you know exactly where you stand in terms of pricing.

While so-called cheap landlord insurance quotes are all well and good, you need to know what you’re looking for. Using our online quote and buy service, or by giving us a call, may help you find buy to let insurance that fits your budget and your expectations.

More things for a landlord to think about

Being a landlord involves a bit more than just finding a tenant, collecting the rent, and ensuring that you have adequate landlord insurance.

There are now legal obligations and responsibilities for both landlords and tenants and you, as a landlord, may need to know about these – and, more importantly, comply with them.

Your relationship with your tenants

A formal tenancy agreement may not be obligatory in all types of lettings (and also depending on where the property is situated in the UK), but you may find that even if there is no legal requirement for you to enter into such an agreement with your tenants, it may be in everyone’s best interests.

An agreement can formalise things such as:

• the length of the tenancy and its start and end dates;
• the rent to be paid, the dates on which it is due and how it is paid;
• the deposit and how it is protected – the law is clear on the protection you must provide for deposits received from your tenants; and
• who is responsible for bills such as utilities, council tax and such like.

This may mean that in the event of a dispute there will be no uncertainties of the type that may arise if you have entered into some kind of verbal, informal or implied agreement with your tenants.

Read our Guide to tenancies for more information.

Your property and its safety

Most properties, even those which are not furnished, may typically be let with appliances such as gas boilers, water heaters, cooker, and so on. As a landlord, you have a legal obligation to ensure that these are serviced once a year and at the beginning of each rental. Safety certificates – for both gas and electricity – are now required and these have to be issued by a qualified and certified professional.

If your property is let on a furnished basis then the fabrics used for your soft furnishings must all conform to fire safety regulations.

For more free information, tips and guides, please browse the rest of our website. Or, if you have a question relating to your landlord insurance, please do not hesitate to give us a call on 01702 606301.

The English language seems to be lacking somewhat when it comes to words to describe that inner contentment, stability, and peace of mind we typically refer to as “wellbeing”.

Maybe it’s for that reason, therefore, that from time to time we look to borrow from other cultures to find just the right word to convey a lifestyle approach that summons up a sense of wellbeing a sense that, somehow, we can make everything that little bit better with the world.

Home furnishings website SCS has shared some of the tips and secrets of interior design that might bring greater wellness and wellbeing into your home.

Feng shui

Feng shui – literally “wind” and “water” in Chinese – is an ancient Eastern practice with a history stretching back at least 5,000 years. It has long been used to bring good health, prosperity and general wellbeing into people’s lives and homes.

2020 is an especially important year for feng shui, advises the Feng Shui Store, since this year of the Rat marks the very start of the cycle of the 12 animals in Chinese astrology – so you can expect major shifts in all manner of lifestyle energies.

Feng shui practices that can bring positive energy into your home include:

• clearing the path to your front door or weeds, rubbish, and clutter;

• place sofas and chairs where possible with their backs to the wall and a clear line of sight towards the door of the room;

• concentrate on the sensitive use of colour and light – and remember that any mirrors should be hung to reflect the good and attractive rather than the bad;

• fresh flowers add a positive and vibrant energy to any room – just remember to remove them once they begin to wilt and fade.

Hygge

Britons seem to have taken the Danish concept of hygge – pronounced “hoo-guh” according to Marie Claire magazine – is all about feeling warm, comfortable, and safe. As winter draws nigh, think cosy log fires, the flicker of candles, and comfy dressing-gowns.

As the concept has gained ground in this country, there have been endless arguments about the precise meaning of the word – and how to achieve it. Warmth and a laid-back and relaxed friendliness seem to lie at the heart of it – as you continue to strive for:

• cosy intimacy in the furnishings of your home – candles lit and slippers ready by the door for visitors to step straight into;

• natural colours, natural materials, natural fibres, and textures – a little bit of nature itself brought into your home;

• maintain a cosy atmosphere and brighten things up with neutral rather than garish colours.

Lagom

Some would argue that the Swedish concept of “lagom” has overtaken the Danish inkling for hygge, according to an article in Country and Town House magazine recently.

It is another of those words that has no exact or precise translation in English but is popularly interpreted to mean “not too much, not too little, but just right”. In place of the cosiness of the Danish hygge, lagom seems to stress that there is virtue in moderation and that enough can often be as good as a feast.

In terms of interior decorating and lifestyle choices, therefore, lagom is most likely to involve:

• simplicity – few accessories, no clutter and easy on the loud feature walls;

• practicality and accessibility – that coffee table needs to be placed just within an arm’s reach; and

• natural lighting, uncluttered windowsills, to let in the light – with colour and texture given by plants and flowers.

The ambience and atmosphere you create in your home may go a long way to encouraging your personal wellness and wellbeing – and concepts from other cultures may help you achieve those lifestyle goals.

Widespread approval from homeowners and buy to let landlords greeted the introduction of a stamp duty “holiday” when it was announced in the mini-budget or summer statement by Chancellor of the Exchequer Rishi Sunak on the 8^th of July.

So, what does that stamp duty holiday amount to and what do you need to know about it?

What does a “holiday” mean?

The stamp duty holiday simply means that the tax will be temporarily suspended. The suspension takes immediate effect and will last until the 31^st of March 2021.

Is stamp duty lifted from the purchase of all properties?

The tax holiday applies only to property with a purchase price of up to £500,000.

The rate of stamp duty applied on purchases of property costing more than £500,000 continues to attract the tax at the normal rate. That is to say, 5% on homes costing between £250,001 and £925,000, 10% on those costing more than £921,001 and up to £1,500,000, and 12% on any property costing £1,500,001 or more.

Why has a stamp duty holiday been introduced?

The introduction of a stamp duty holiday is intended to kickstart the housing market, aid its recovery from several months of lockdown, and inject new energy into a sluggish economy, explained Landlord Today in an article on the 9^th of July.

How much do buyers stand to save?

In an article dated the 15^th of July, Property Reporter cited estimates prepared by the Centre for Economics and Business Research (CEBR) suggesting that buyers might save an average of £4,400 on any property purchase – the exact savings, of course, depending on how much the home cost to buy.

As a result of the savings available, CEBR further calculated that an additional 101,000 property sales might be expected between now and the end of next March.

The article illustrated its calculations by showing how someone (not a first-time buyer) buying a property for £400,000 would normally be liable for stamp duty of £10,000. That figure is made up of the £2,500 that would usually be payable on the part of the purchase between £125,000 and £250,000 and a further £7,500 on the balance between £250,000 and £400,000. With a stamp duty holiday, therefore, the buyer makes a saving of the whole of that £10,000.

Since first-time buyers are in any case exempt from stamp duty on the first £300,000 of the price of their home, they would normally pay 5% on the balance between £300,000 and £400,000 – in other words, £5,000. Thanks to the stamp duty holiday, they now save £5,000.

To make things easier still, the Money Advice Service has published an online stamp duty calculator (incorporating the recent tax holiday).

Does the tax holiday also apply to buy to let property?

If you are a landlord purchasing a buy to let property or someone buying a second home, you enjoy the benefits of the current stamp duty holiday but must still pay the 3% stamp duty surcharge that applies to all such purchases.

Are the rules the same throughout the UK?

It is important to stress that the changes announced by the Chancellor on the 8^th of July apply only to property transactions in England and Northern Ireland.

In Scotland and Wales – where property in any case tends to be cheaper – the threshold at which the local equivalents of stamp duty will be levied are raised from the current £145,000 to £250,000 until the 31^st of March 2021, according to the Financial Reporter on the 15^th of July.

You don’t necessarily have to be a perfectionist to want the best of something. When it comes to the best landlord’s insurance, you may just want the peace of mind that comes with knowing you have done all you can to protect your asset.

The “best” though, can mean different things to different people. Landlords may have different views on which aspects of let property insurance cover are important to them and which aren’t.

So, in answer to the title, what is the best insurance for one landlord may not be best for you. The best policy for you depends on a number of issues and may be different from what constitutes the best policy for another landlord. No two landlords necessarily have the same attitude to risk and property management nor the same attitude towards what represents good value for money. For one landlord, a low cost, budget policy that gives basic cover at a cheaper price may be the “best” for him. While for another landlord, an all-singing-all-dancing policy that offers lots of benefits at a realistic price may be “best” for him.

That is why shopping around for the most suitable landlords’ insurance may be a preferable approach to just picking a policy out because it had the lowest price tag.

Here are some tips on what you need to know when looking for the most suitable let property insurance for you.

Building and contents insurance

Making sure that you have appropriate cover for your building and its contents is understandably important.

Although policies we arrange here at Cover4LetProperty offer a wide range of features and benefits as standard, not all policies do so – make sure to look out for cover such as whether trace and access cover is included. So if, for example, your plumber has to rip up some floorboards to find a leaking pipe, are these repairs covered?

Check:

• if your property is damaged by an insured event and your tenants have to move out while work is completed, does your landlord’s insurance provide loss of rent cover;
• whether the policy provide cover for all types of tenant or are some, like students, benefits claimants, or the unemployed. excluded;
• is subsidence cover is included;
• is the risk of malicious damage caused by your tenants or their visitors also included and, if so, is there a policy claim limit; and
• that are you happy with the level of public liability cover provided by the policy.

The need for unoccupied property insurance

It is not just about your building, its contents, and landlord liability indemnity cover, however.

If your property is unoccupied then you may have to take special steps, in the form of unoccupied property insurance, to ensure that you have the most suitable landlord building insurance protecting you.

Unoccupied property insurance may be one of those things that you think you may never need. However, it may be easier than you think for your property to come into the “unoccupied” category and this applies equally to owner-occupier and buy to let properties.

In insurance terms, that may happen if your property stands empty for a period of typically 30-45 consecutive days or more for reasons such as:

• refurbishment work may overrun through no fault of your own and in circumstances which are beyond your control;
• you might encounter difficulties in finding new tenants, with the result that there is an extended gap or “void” between lettings;
• probate or divorce proceedings;
• you may have the opportunity to add a few weeks onto your annual leave and take an extended holiday; or
• a business trip overseas may be extended, or travel plans might be significantly delayed.

You may need unoccupied property insurance cover because, when your property is empty, it is more vulnerable to different types of risk such as:

• a minor problem going unnoticed and being allowed to get worse over time thereby causing more damage; and
• unlit windows and uncared-for gardens that might be a giveaway for thieves and vandals who take the opportunity to carry out their work unobserved.

Unoccupied property insurance may incorporate terms and conditions, which may require you to take specific actions to try and help keep your property that bit safer when it is unoccupied. Typical measures, for example, might include:

• visiting the property regularly to carry out ongoing maintenance;
• keeping a log of visits and work carried out;
• making sure heating and water systems are drained down and/or minimum temperature requirements are met (during the Winter months);
• making sure that the garden is kept tidy.

In any situation where your property stands empty for more than 30-45 consecutive days and you do not have unoccupied property insurance, then even the best landlords insurance (or owner-occupier policy) may not provide cover for events after the 30-45 day limit and any claims may be rejected.

Information needed when you get a landlords insurance quote

Getting those landlord insurance quotes to fit your exact set of requirements can typically be easy and straight forward. With our service, for example,  you can use our online landlords’ insurance quote engine or get in touch via email or on the telephone. We will be more than happy to help you find appropriate cover.

It is important you have to hand the following information to enable your insurer  to provide a quote:

Finding out about you

• in order to arrange the most suitable landlord insurance policy, any insurer needs to confirm your identity and take details such as your name, date of birth, address, and electronic contact details;

Finding out about your property

• next, so as to give you an accurate quote, insurers typically need to build up a picture of the property you let;
• those details are likely to include the full postal address of the property to be insured;
• details of its method of construction (whether it is standard or non-standard);
• information about the present condition of the property and whether it has been well maintained; and
• whether the property is in an area that has suffered from flooding problems;

Value of cover needed

• depending on the cover you are looking for, you may need to name figures for the buildings and contents elements of the policy;
• the figure for buildings may relate to total rebuilding costs, including site clearance and professional fees. If you have recently had a survey done of the property – for a mortgage valuation for example – you may find that rebuilding figure is quoted there;
• to accurately and comprehensively value the contents, you need to make a list of the things that you have inside the property that you are responsible for in your capacity as a landlord – in other words, you need to conduct a detailed inventory;
• while making your inventory, also calculate the costs of redecoration and furnishings – this will enable you to make an informed decision as to how much landlords contents insurance you may need;
• don’t forget to refer to any inventories that might have been prepared already – for further clarification as to what you need to get insured.

Who will be living in your let property?

This question is not just the insurer being nosy. Instead, it gives them an idea of the kind of tenant base your property attracts, and how risky a group of people they are.

The level of consideration given by any insurer to this aspect of cover may vary, but you may find that some insurers prefer to insure properties that are to be let to a certain type of tenant (for example, employed, professional or retired tenants only).

At Cover4LetProperty, however, the good news is that we have no restrictions on the type of tenants you let to. For an inside view on insurers’ attitudes towards different types of tenant, you might want to watch your video: Why are tenant types important to insurance companies.

Getting the best landlords insurance cover

To be certain of getting the best landlords insurance cover it is also worth your while spending a short time reading through the terms and conditions of any policy to ensure that you completely understand what is and is not covered.

If you are looking for the best landlords insurance, using a specialist website such as ours – backed up by telephone help, advice and support – may typically allow you to access specialist cover at a competitive price that matches your particular needs and circumstances as a landlord.

With house-hunters out and about, first-time buyers active, and government doing its best to stimulate the housing market, things are beginning to look brighter once again for anyone with an interest in property.

Let’s take a brief look at some of the news items shaping the present course of events.

Buyers leave London for more space

Now free to spread their wings and enjoy some time outdoors once again, house-hunters are looking to escape central London locations. Instead, a reported 83% are looking for homes in villages and 90% in countryside locations in the west and southwest, according to Property Industry Eye on the 25^th of June.

The trend is confirmed by the number of new buyers signing up with estate agents outside the capital – 32% currently have addresses in London, compared to 21% of such house-hunters in 2019.

The most affordable homes to buy in Britain

With the property market on the move once again, it might be time to consider just how affordable your next home is likely to be.

In some parts of the country, for example, you might be able to get a foot on the property ladder for little more than twice your salary, reports the Mirror in a story on the 7th of July. Contrast this with other parts of the country, warns the newspaper, where you may have to spend up to ten times’ your salary just to afford a two-bedroomed flat.

The article lists the most affordable places in which to buy a home in the UK. Most of these are in the north of England (particularly County Durham) or Ayrshire in Scotland, plus the Rhondda Valley in South Wales. In all of these places, homes may be bought for prices as low as between 2 and 3 times local salaries.

Temporary Stamp Duty cut

During his mini-budget on the 8^th of July, Chancellor Rishi Sunak announced a temporary Stamp Duty holiday from now until the end of March next year.

For this period only, no Stamp Duty at all will be payable on properties purchased for less than £500,000. In its report on the mini-budget, the Times newspaper estimated that the Stamp Duty holiday is likely to save buyers an average of £4,500 on the purchase of their home.

As we reported last month, cutting Stamp Duty is expected to provide a kickstart to the re-emerging housing market and, because it is only a temporary holiday, buyers will be expected to act sooner rather than later when the full rate of the tax is re-applied.

Included in the same mini-budget, the Chancellor also promised a total of £2 billion in “green homes” grants. Households will be able to apply for grants of up to £5,000 for up to two-thirds of the costs of fully insulating their homes. Low-income households will qualify for grants of up to £10,000 to cover the full 100% of such costs.

Increase in demand for overseas properties

Online property agents Rightmove recorded a record one million searches in a single day from site users for overseas property, according to a story in Property Wire last week.

The sites highest number of searches peaked in June and reached a year on year increase in volume of 28%. The overseas section of its website has been 41% busier than in June of 2019.

Property-hunters were looking either for holiday homes or ones to which they planned to relocate. The most popular locations were Spain, where searches are up 25% compared with last year, France (32% up), Portugal (24% up) and Italy (17% up).

A spokesman for the website conceded that a somewhat fickle British clientele meant that searches for holiday homes dipped when the UK was enjoying sunny weather and bounced back again when skies at home turned grey.

For anyone striving to run their own business, managing the cashflow and sticking to a carefully formulated budget are likely to be high-priority objectives.

Almost everyone these days may need to tighten their belts a little and landlords are no exception. Making a successful and profitable business from your buy to let investment is almost certain to rely at least in part on reducing your overheads. Here are some tips on how you may perhaps be able to make a few savings.

Money, money, money

Probably like no other business, when you are a landlord it is worth doing your sums – again and again.

This starts from the word go when you are choosing your property or properties and determining the rental yields, calculating your expenses, and casting around for a buy to let mortgage.

Choosing a property

When buying your property, you may need to spend a bit of time researching the area and the type of tenants you are likely to attract to that location – vacant properties, with no sitting tenants, will cost you money.

The better you can fit in with prevailing market conditions then the more likely you may be to find suitable tenants for your property. For example, offering a property as ideal for a young family in an area with no parks or schools nearby may not provide you with the results you expect – no matter how well presented or attractive the property actually is.

Don’t just head for the local estate agent when trying to find a suitable property – you might also want to check out local property auctions, as these are often a major source for some real savings.

We have produced a detailed guide to Finding your next investment property.

Be realistic

Of course, you will want to maximise your rental yield, but remember that tenants in your area are only going to be prepared to pay the going market rent.

Don’t be unrealistically greedy, therefore, but pitch the rent at a level you know you are likely to sustain – or you may find yourself with more, and longer, expensive voids than you might otherwise have.

Mortgages

Buy to let interest rates are typically higher than residential rates. Bear this in mind when you compare the buy to let mortgages available and take into account the fact that you are likely to get a better rate if you have a bigger deposit to put down.

Rates, terms and conditions will also vary according to the lender’s assessment of the risks involved in your buy to let investment.

As ever – but especially during times when mortgage markets are in a state of flux – keep your buy to let mortgage under constant and careful review and be on the lookout for alternative deals which might save you money. When doing so, do factor in any penalties you may face when swapping mortgage products.

Landlord insurance

This is an essential that is also worth keeping under constant review. Things change – sometimes quite rapidly and a policy you purchased a year ago might now not look quite as cutting edge as other options in the marketplace.

Think twice about paying for contents insurance if you are letting property on an unfurnished basis. You may need to be clear that any items that you regard as being fixtures and fittings are, in fact, fully covered on your buildings policy. Overall, however, the savings may be significant.

Consider property portfolio insurance cover if you have several properties. It might end up saving you serious sums of money as opposed to purchasing individual policies for each property.

Compare different policies to find the one most appropriate to your particular needs and circumstances at a competitive market rate. Help with your search on that score is ever available here at Cover4LetProperty, of course.

Letting agents and property management

Carefully do your sums on the fees charged by letting agents and property management companies. True, they will take a percentage of your rent, but they may have access to lower-cost services for things such as cleaning and maintenance than you do.

So, shop around for the most reliable and professional lettings agent who is well-placed to advise on achievable rent levels for your particular type of property in your area – it is in their interest, too, to maximise your rental income and keep voids to the minimum.

You may cut the costs of letting agent fees entirely, of course, if you are prepared to put in the hard work of selecting, reference-checking, drawing up and signing the tenancy agreements.

For more on this subject, browse our detailed Guide to choosing a letting agent.

Managing other overhead expenses

There is a host of areas where you might make ongoing savings on your overhead expenses:

• regularly review your utility service providers. The tariffs for things such as gas, electricity and telecommunications are, unfortunately, occasionally chaotic. Even so, they are changing frequently, and you may find that there are now much more cost-effective options out there in these areas than the last time you looked;
• you have certain legal responsibilities for ensuring the safety of your tenants with respect to the gas and electrical supplies and appliances in any let property – and that means having them inspected regularly;
• by combining both gas and electrical safety inspections at the same time, with just one visit by a suitably-qualified team, you may minimise disruption for yourself and your tenants – and save money into the bargain.
• check your bank account or accounts. Although competition between banks is perhaps not as fierce as it once was for your business, even so, there may be significant differences between them in terms of rates and facilities offered etc. Remember that it’s also worth looking at any bank charges you are paying and see how they would compare against another banking services provider;
• indeed, if you haven’t already done so, switch from cheques and cash-based rent dealings with your tenants to e-banking type transactions. Using cheques involves paperwork, the possibility of a cheque being lost before it reaches your bank, delays in clearance and of course, the occasional bounced payment. Cash is certainly risky in terms of loss, theft, discrepancies, and disputes. The majority of tenants today should have bank accounts and it will be typically lower cost and more efficient for you to ask them to pay the rent through that method;
• look for trade discount opportunities in DIY outlets for decorating products and so on. At one time reserved strictly for the building trade, these are now sometimes more liberally interpreted as applying to anyone purchasing significant volumes regularly. If you have several properties and are regularly improving, maintaining, and decorating them, you may be eligible for some discounts of this type and it might save you some significant cash;
• keep your décor neutral – people have widely varying tastes when it comes to décor and it may be better for this to be bland and inoffensive rather than a statement about how many primary colours you can have in the one room. If your tenants want to brighten things up a bit, they can do this with their own possessions and their own taste (and own money). More important for letting success is to ensure that your property is clean, freshly decorated and well maintained;
• buy second hand rather than new furniture. It’s a myth that new flat-pack items are always cheaper than quality furniture. Second-hand quality furniture if often available at a pittance from auctions and it might last a lot longer than the modern flat-pack equivalent;
• although times are tight in terms of grants from national and local government, nevertheless, there might remain a few options available in areas such as energy-saving and refurbishments. Do some research and make some enquiries – it costs nothing and may save you considerable sums of money;
• make sure you know about all of the tax allowances you may claim to help reduce your tax liability. These could include your costs for letting agents and the like and for purchasing replacement furnishing for your letting property. The HRMC website is a useful source of information on this.

Saving money on your buy to let investment

Some landlords believe that a successful letting business is largely about getting the highest possible rates for a property.

However, it can equally be as much about controlling costs – and that’s why some of the above steps might prove to be important. Saving money on the essential expenses you need to make in your buy to let business may take careful forethought and planning but is likely to go a long way in helping you turn a profit. Fortunately, there are a number of ways in which you may achieve those savings.

Many people may think that unoccupied property insurance is of interest to landlords alone, but it is not just buy to let properties that may need this form of protection.

Owner-occupied property may also be at risk if left standing empty for extended periods and any existing home buildings and contents insurance may become invalid after 30-45 consecutive days. (The period varies among insurance policies and insurance providers, so you should check your existing insurance to find out what the cut-off point is for your particular policy).

Just as there are many reasons why a property may lie temporarily unoccupied, so there are many different forms of unoccupied property insurance from various insurance providers. Only by comparing those competing policies are you likely to find the cover that is appropriate for your particular needs and circumstances

Who needs unoccupied home insurance?

If you are a landlord, then you may wish to keep the times when your property has no tenants living in it and paying rent to you to an absolute minimum. These are so-called “voids”. There may be times, though, when they may be unavoidable and, in those circumstances, you may wish to ensure that your property is protected by the best unoccupied property insurance.

So, if you are wondering whether insurance companies insure empty properties, then the answer is “yes”. Therefore, if your property is standing empty for a period of typically around 30-45 consecutive days or more, then finding out more about your vacant property insurance options may be your next step.

A house standing empty and vacant maybe as the result of:

• the property being in probate;
• perhaps there is a divorce settlement pending;
• you may be on an extended business trip;
• you may have treated yourself to an extended holiday;
• building or refurbishing work may have overrun;
• you may be finding it difficult to find new tenants for your buy to let property.

These are all circumstances where unoccupied home insurance may typically be required.

What is the difference between vacant and unoccupied?

The terms vacant and unoccupied might mean different things even though they’re often used interchangeably in everyday situations – as might the related term empty. Those differences can be significant in terms of your insurance protection.

To explain, in everyday English you might use:

• vacant – indicating nobody is currently renting the property from you and that you are seeking to let it;
• unoccupied – to mean that no one is in occupation at a given time. That may apply to properties that are vacant or let (for example, your tenants are on holiday);
• empty – usually meaning that a property is unoccupied and perhaps also is vacant but unfurnished. It might also be used to indicate that a property is off the market and under refurbishment.

In common usage, none of these terms necessarily says anything about how long the status has been in effect – i.e. its duration. However, within property insurance, one of those terms has a specific connotation relating to the duration of the status and therefore the specific cover required.

Whatever the reason, if your property has no one living in it for a period of around 30 consecutive days or more then it may fall into the insurance category of “unoccupied” – in which case you may need to compare unoccupied property insurance to supplement your landlord cover or your home insurance.

While you may also see unoccupied property insurance referred to as empty buildings insurance or empty home insurance, it is not when a property is empty of furniture that this type of insurance may be required. It is the presence or otherwise of people living in the property that is important.

The reason for this is that an empty house (even if furnished) may be more at risk than when there are people living in it:

• if there is no one around, small problems may become more serious very quickly, resulting in more damage and potentially greater cost;
• thieves and vandals may target properties which are empty, with unkempt gardens and dark windows being the most obvious tell-tale signs.

So, what sort of things should you be looking for if you’re about to compare unoccupied property insurance?

The policy features and benefits of unoccupied house insurance policies will vary from insurance provider to insurance provider, so when getting insurance quotes make sure you understand whether:

• there are special terms and conditions in the cover. Some policies, for example, may require that the property be inspected regularly and have ongoing maintenance work carried out as required;
• it may be necessary to keep a log of inspection visits and any work carried out; and
• draining down water and heating systems (or keeping the property at a minimum temperature), particularly over the winter months, is included in the policy terms and conditions.

Empty properties under refurbishment

In some instances, you may find your property is likely to stand empty for extended periods arising as a result of significant building and refurbishment work.

Some insurance providers may differentiate between unoccupied and empty property status, offering specific cover for those properties undergoing major works over lengthy periods. That may be required because in some such instances, it might be impossible to fully secure it if external walls and windows have been removed, for instance.

If you are planning renovations for your home or buy to let property, then keeping an eye on your dates may make sense.

Building work may be subject to delays and you may wish to make sure that you understand exactly when you may need to consider unoccupied property insurance to protect your financial investment.

Unexpected periods of unoccupancy

The empty property definition will typically apply even in situations where it has arisen for reasons entirely beyond your control.

However unlikely it might seem, things such as flight delays/cancellations or sickness while overseas might also mean you will need empty property insurance if you pass the specified number of consecutive days without occupants.

If you are unexpectedly delayed and worry your property may drift into formal unoccupied status, you should contact your insurance provider immediately. They may be able to put unoccupied home insurance cover in place quickly.

Similarly, tenants who failed to notify you that they were away for extended periods might not be considered a justifiable reason for allowing your property to drift into unoccupied status. It might be advisable to ensure a notification clause is contained within your tenancy agreements.

Disguising your property’s status

You may find that empty buildings insurance may carry with it some specific terms and conditions. As we have already mentioned, for example, you might be required to keep a log of inspection visits to your property and a note of maintenance carried out.

You might also find that your empty property insurance requires you to take some largely common-sense steps to try to disguise, as far as possible, the fact that your property isn’t occupied.

These are rarely onerous conditions and might include such precautions as:

• putting lights on timers;
• making sure post is not left to accumulate where it is visible;
• keeping garden areas tidy by cutting grass and pulling weeds;
• asking builders to refrain from erecting work underway advertisement signs;
• avoiding putting notices up telling callers when you will be back;
• not giving specific addresses in situations when the property is vacant and being advertised.

Removing valuables

Whether you are a landlord or owner-occupier, your unoccupied property insurance might require you to remove and separately securely store any items that are particularly valuable.

Mortgage conditions

Finally, don’t overlook potential mortgage provider requirements, warns the Council of Mortgage Lenders (CML).

As a general rule, as part of the governing loan agreement, your mortgage provider will require you to make sure that you keep full appropriate insurance cover in place at all times.

If you allow your property to drift into unoccupied status without taking out the appropriate unoccupied home insurance cover, you might be in breach of your loan agreement contract.

As such, your use of empty property insurance might not be optional but rather mandatory.

The consequences of being in breach of your mortgage agreement can be severe – including being asked to repay any outstanding sums immediately. It is unlikely to be a risk worth taking.

Next steps

Your landlord or owner-occupier house insurance may provide you with the cover you need on a day-to-day basis. If your property is without tenants though, or your home is standing empty, you may wish to speak to your house insurance provider and/or compare unoccupied home insurance policies.

Insurance for unoccupied property may be slightly more expensive than standard buy to let insurance and it may be a temptation to try and make do without it. You may find though that any claim on a standard policy may be rejected if the property is found to have been empty at the time for a period of more than 30-45 consecutive days.

Finding and comparing unoccupied property insurance

Finding the best unoccupied property insurance may be made that bit easier if you allow us to help you to find the most appropriate cover for your particular situation.

We understand only too well that what may turn out to be the best unoccupied property insurance for someone else may not be the best for you and may help you compare the available policies to find the one which matches your circumstances and your pocket.

For further reading on this important topic, you might want to visit our Guide to Unoccupied Property.

Checking out of a rented property can still present problems for those needing to maintain social distancing. The Deposit Protection Service (DPS), therefore, has issued new guidance to landlords and tenants in England and Wales about the final handover.

Outlining the guidance in a story dated the 24^th of June, Landlord Today, reminded readers that the government announced changes in the restrictions on moving home during the current pandemic.

Although the easing of restrictions meant that landlords could make the necessary visits to their let property to facilitate tenants moving in and out – to take hand-over inventories, for example – they could do so only by minimising any physical contact. To maintain the necessary social distancing between landlords and tenants, one option, suggested government advice, was for tenants to stay in a different room during any visit by their landlord.

To ensure a smooth checking out and hand-over, that avoids any misunderstanding or dispute over a deposit that needs to be repaid, the Deposit Protection Scheme suggests:

Contact details

• if there is subsequently a dispute about the return of a deposit, arbitrators will need the telephone numbers or email addresses of both tenants and landlords – so make sure you retain a record of these;

Cleaning

• charges for the cleaning bill are at the centre of 63% of the disputes over the return of security deposits, says DPS;

• but precautions introduced because of the pandemic mean that landlords may need to spend more than usual on performing a deep clean before re-letting the property;

• unless you carried out such deep cleaning before your current tenants moved in, you cannot reasonably charge them for the deep clean that now needs to be made when they are moving out;

Deposits cannot be used for rent

• both landlords and tenants need to remember that a deposit cannot be used to pay any rent that falls due;

• if a landlord has reduced the rent payable, for example, it cannot be recuperated simply by withholding the return of some part of the deposit;

• if tenants are having difficulty paying the rent, that needs to be taken up early with the landlord and any lingering issues communicated to the deposit-holding company;

Picture it

• date-stamped photographs continue to play an important role in recording the condition of any let accommodation at the end of a tenancy, if a face-to-face visit and inspection is impossible because of coronavirus precautions;

• photographs may also be used for estimating the likely cost of repairs to any damage;

Gas and electricity safety checks

• despite the potential restrictions on access to let property, landlords continue to be responsible for maintaining gas and electricity installations in a safe state of repair and for conducting the necessary periodic checks and certification;

• nevertheless, there may be inevitable delays in arranging for those inspections to be carried out – pending the further lifting of lockdown restrictions;

Keep DPS in the picture

• if either landlords or tenants encounter any problems in gathering the evidence necessary for a smooth check-out at the end of a tenancy, DPS needs to be informed as soon as possible.

Although the situation for both landlords and tenants may be slowly returning to a new “normal” there are still situations in which it may be difficult to conduct final inspections and inventories at the end of a tenancy – and these are necessary, of course, to decide on the amount of any deposit to be returned to tenants.

The suggestions outlined by DPS are designed to avoid such difficulties.

Please note, this information is correct at the time of writing, but may be liable to change.

Landlord insurance – also known as let property insurance or buy to let insurance -– is generally not a legal requirement (unless you have a mortgage on the property, but we will get to that later). But if you do not have it, the considerable investment represented by your let property may be at dire risk and in peril.

It is in peril because of the risks to which any let property is exposed and against which let property insurance is designed to offer effective cover and protection.

By whatever name, therefore, landlord insurance aims to protect the structure and fabric of the let premises, its contents, the third-party liability risks arising from your having tenants – and, from time to time, their guests – on the property.

Deciding that landlord insurance, or any component of it, is anything other than essential might be unwise.

Landlord insurance and your buy to mortgage

If you have an outstanding balance on the buy to let mortgage you arranged to purchase your let property, the lender is almost certain to have asked you to sign a legally binding document confirming that you have and will maintain, appropriate let property insurance at all times.

At the time your mortgage was taken out, they may also have requested a copy of your landlord insurance policy.

That’s because they will be keen to ensure that their loan capital is well protected if something unfortunate happens to your property.

If it is logical for a mortgage lender to seek to protect their investment in this fashion, then the same reasoning may dictate that it would be highly advisable for you to do likewise.

Owner-occupiers standard home insurance vs. landlords insurance

If you live in a property you own and nobody apart from you and your family usually are resident there, you will be considered to be an “owner-occupier” by insurance providers.

Typically, non-paying guests staying over or using your property for a short period are not a problem. Your insurance will not be at risk, providing that there are no commercial arrangements in place in such circumstances.

However, the moment you start charging somebody for accommodation in a property you own, whether or not you live in it yourself, you have made a commercial arrangement. By law, you have become a landlord, and you will also find that you have certain legal responsibilities and obligations.

The risks involved in offering insurance for a property vary depending upon whether or not it is owner-occupied or let out for rental income. That means that typically there are two very separate and distinct forms of property insurance:

• owner-occupier; and
• let property insurance.

With tenants occupying the dwelling, the risks are of a different order and magnitude, so that specialist let property insurance is essential – indeed, if you rely on your standard home insurance when the property is let, you are likely to find any claim rejected.

If you previously lived in the property as an owner-occupier and had standard home buildings and contents insurance in place, this cover will become invalid the moment you start renting your property out. That may even apply if you only rent out part of it, such as a couple of bedrooms.

In such circumstances, you will typically need to switch to landlords’ insurance to ensure continuity of cover.

Note that you may also be in contravention of the terms of any existing owner-occupier mortgage you have on your property, and it may be advisable check the implications of change with your mortgage lenders in advance.

That is why you need specialist landlord let property insurance.

Who needs let property insurance?

Let property insurance is required, therefore, if the home you own is let to tenants. But this, too, may embrace a wide range of possibilities. So, let’s take a closer look at who needs let property insurance. That is the specialist cover you are likely to require:

• even if you are only letting out a single room in the house you, too, continue to occupy (under the government’s Rent a Room scheme, for example);
• if you are letting friends live in your property or part of it, in return for them paying you a rent;
• if you are letting your property out only occasionally, for example, for holiday rental purposes during the summer months;
• in situations where your lettings are infrequent and sporadic, usually being done on a short-term basis to raise some extra cash when needed;
• whether your property is furnished or unfurnished; and
• whether or not you have a formal written tenancy agreement in place.

The basic condition to keep in mind is that if you are using your property for the generation of any sort of rental income, then you need let property insurance.

As a general note, if you intend to change the use of your property – for example, you decide to let it out for a few weeks during the summer – you must inform your mortgage provider. Failure to do so could see you in breach of your mortgage agreement.

What does let property insurance cover?

Any consideration of the importance of let property insurance, of course, needs to examine just what the typical policy covers. Although there are many and varied products available, let property insurance typically focuses on providing indemnity against the following risks:

Building insurance

• at the heart of let property insurance – just as with your home insurance – is the protection of the structure and fabric of the building itself against such potentially severe risks as fire, flooding, storm damage, impacts, vandalism, and theft;
• arrange your insurance through us here at Cover4LetProperty and the building insurance also typically protects you against the risk of subsidence, malicious damage by tenant and, offers trace and access cover as standard – something you are unlikely to find with some other let property insurance providers;

Contents insurance

• although your property is let – and your tenants are responsible for insuring their own possessions and belongings – let property insurance may also protect those contents you own;
• if a tenant causes malicious damage to your property or its contents, our policies also include as standard cover against such acts (up to set limits);

Landlord liability insurance

• the moment you let your property to tenants, you also assume responsibility for ensuring their health and safety in the dwelling;
• if one of your tenants, a visitor of theirs, some other caller at the property, a neighbour or a member of the public suffers an injury or has their property damaged through some contact with the premises you own, you may be sued for a substantial sum in damages – especially if someone has been physically injured;
• levels of landlords’ public liability protection may vary considerably, with some policies being more generous in this area than others – which might be significant given the potential size of some court awards for damages;
• while let property insurance typically incorporates at least £2 million indemnity against such claims, in the case of policies arranged by us here at Cover4LetProperty, there is the option to go up to £5 million;

Loss of rental income

• whether you are a full or part-time landlord, the rent you receive from your tenants is a valuable source of income;
• that income stream is likely to be disrupted, however, following a significant insured event which leaves your property temporarily uninhabitable pending repairs and reinstatement of any damage;
• let property insurance (as an optional add-on to your policy) may, therefore, provide for compensation for such loss of rental income – up to prescribed limits, of course, typically related to a percentage of your total sum insured.

Unoccupied let property insurance

If your property becomes unoccupied (by which insurers may typically mean that the property remains empty for 30 to 45 consecutive days or more but depends on individual providers), then insurers typically require you to notify them of this fact.

Failure to notify the insurer of a property becoming unoccupied in that period may result in an insurer refusing to pay a claim in the event of a fire, storm or other peril that may otherwise have been covered.

Circumstances in which such vacancies may arise include:

• problems finding new tenants or delays in them moving in;
• building or refurbishment work overrunning;
• legal proceedings like divorce or probate; etc.

At times like this, when your property is going to be empty, specialist vacant property insurance policies are available (not just for landlords, but for anyone whose property stands empty for 30-45 consecutive days or more. These might be people who are having an extended holiday or working away from home for some time, for example).

Carrying out a let property insurance review

In the light of the discussion so far, or because any existing landlord insurance policy is soon up for renewal, then carrying out a let property insurance review may be something that might be of benefit to you.

You might be inclined simply to renew your existing cover. But if you do this, you may be missing out on some opportunities to provide yourself with more extensive protection and perhaps save some money into the bargain.

You may find, for example, that some features of cover that you may consider to be an essential part of any landlords insurance policy, may be provided as standard by some policies but are an optional extra – for which you must pay more – on others.

Your let property insurance review allows you to identify those policies which most closely correspond with the features of cover that you may feel that you need for your peace of mind as a landlord.

So, you may find that some policies may offer as standard:

• subsidence cover;
• malicious damage by tenants;
• cover for students and DSS;
• differing upper level limits;
• trace and access cover.

Getting the cover you feel comfortable with may only be part of the battle. As we have seen, you may also need to consider what, if anything, you need to do if your property is empty for an extended period.

Comparing let property insurance policies

As part of your review of existing arrangements, you may decide to compare the competing products available – whether you are an existing landlord, new to the role or even an “accidental” landlord.

If you are able both to compare landlord insurance and arrange a suitable policy online at the same time, so much the better.

And that is precisely what we can offer you here at Cover4LetProperty. We can show you some buy to let insurance quotes that are specifically tailored to your requirements. From these, you can choose and purchase online the one which you feel most closely matches your expectations. Or, you can give us a call if you’d prefer to discuss your quote with one of our specialist team.

Of course, not all landlords require exactly the same levels of cover. If you are letting your property out on an unfurnished basis, for example, you may not need landlord contents cover.

Even for those aspects of landlords’ insurance that all landlords may require like buildings cover and third party liability, there may be significant differences in the levels of cover on offer from different providers. So, taking some time to read through what’s on offer from let property insurance online may be necessary.

With our help, you may arrange and compare let property insurance online.

Understanding what is available in the insurance marketplace to help you protect the investment you have made in your property, may be important to the success of your letting business. A short time spent looking at options may then allow you to take finding let property insurance online, off your list of things to do.

As with all financial products, there may be some paperwork to review. Issues you may wish to pay close attention to include the amount of any excess in the event of a claim (the first part of any successful claim for which you are personally responsible), the exclusions or limitations incorporated within any policy, and what your obligations are under the buildings and contents insurance for landlords to keep the cover valid (for example, your duty to notify the insurer if the property should become vacant, to keep it in a good state of repair, to meet certain property security requirements, and so on).

We are always on hand to answer any questions or queries you have, so please feel free to contact us – we’d be delighted to help.

Homes may be left unoccupied for any number of reasons and voids are not the only explanations for a normally let property to lie empty. Whatever the reasons, if no one is living in the home for longer than a month or so, either the owner-occupier or the landlord is likely to be looking for an unoccupied property insurance quote.

When is a property classed as unoccupied?

A standard home insurance or landlord insurance policy allows for periods when a property may be temporarily unoccupied – for example, when the tenant or owner goes on holiday, or for weekends away etc.

But once a property has stood empty for a number of consecutive days – typically between 30-45 days depending on the policy as this can vary – then you will need purpose designed unoccupied property insurance.

A property is classed as unoccupied even if it is fully furnished.

Reasons for the property being unoccupied

If you are the owner-occupier, your home might be unoccupied because:

• you are on an extended holiday away from home;
• your home is under extensive refurbishment or remodelling;
• you and your partner may be setting up home together and you may be in the process of selling one of your properties;
• your job takes you to a different part of the country – or even abroad – to work for longer than a month or so; or
• you might have an interest in a property that is subject to probate and remains empty until that legal process is complete.

If you are a landlord, you may have a longer than usual void – caused by a difficulty in finding tenants or because:

• the normally let property is being redecorated or refurbished; or
• sitting tenants are away for longer than a month or so, yet still decide to keep on the tenancy.

Why seek an unoccupied property insurance quote?

Statistics may suggest that unoccupied properties are more at risk from things such as leaking pipes or storm damage, simply because there is nobody present to notice and rectify the problem before it becomes serious.

Unoccupied properties may also prove to be far more attractive to thieves and vandals, as their chances of being disturbed will be considerably reduced.

As the risks are higher, insurers typically require a specific cover to be put into place – unoccupied property insurance.

As we touched on above, typical home buildings and contents insurance for both landlords and owner-occupiers may contain clauses to the effect that portions of your cover (or the entire policy) may no longer apply if your property stands unoccupied for more than a specified amount of consecutive days. The restriction – and the need for standalone unoccupied property insurance – is typically required because the risks that face an empty property are different from those that potentially exist when the property is inhabited.

If the property is unoccupied for reasons beyond your control

If your home or buy to let property becomes empty for reasons beyond your control, it makes no difference to your likely need for unoccupied property insurance. Your insurers are concerned that the property is unoccupied and not the reasons why.

If building works, refurbishment or a redecoration project has taken longer than envisaged and the home continues to be unoccupied or if new tenants delay the date on which they plan to move in that might still result in your need to seek an unoccupied property insurance quote.

Can I get short-term empty property insurance?

Yes, you can get flexible unoccupied property insurance. For example, we offer short-term unoccupied property insurance for a period of three, six and twelve months. We also offer three levels of cover, so you can choose the protection must suited to your needs.

Your continuing responsibilities

As with any general insurance policy, if you have arranged unoccupied property insurance, you still have a duty to mitigate the risks of loss or damage. Your insurer has the right to expect your exercise of that caution and may reject any subsequent claim – or consider your failure to do so a cause of contributory negligence.

Whatever the reason for your property being unoccupied, you may wish to be aware of the terms and conditions attaching to your unoccupied property insurance quote. These may require, for example:

• that you arrange to have your property inspected regularly and carry out ongoing maintenance, as well as attending promptly to necessary repairs;
• you may also be required to keep a log of these visits;
• you might also want to ensure that a light or two is on a timer to come on in the evenings and that external garden and other areas are kept in tidy and well-maintained condition (in fact, some policies may require it); and
• from a landlord’s point of view, keeping the garden tidy and free from rubbish and litter may not only make your property look more attractive to potential tenants, but it may also help to make the property looked lived in and so deter thieves and vandals.

Steps to take

If you expect your home or let property to be left unoccupied for longer than a consecutive period of 30 to 45 days, you might want to contact your insurance provider for your home insurance or landlord’s insurance to discuss the level of cover to expect.

You are likely to be advised to arrange specialist, standalone unoccupied property insurance.

If you are uncertain about the status of your property when you leave it empty or have any questions or concerns about unoccupied property insurance, here at Cover4LetProperty we aim to help, advise and steer you in the direction of suitable cover.

Further reading: Guide to unoccupied property and Guide to renovating. Watch our short video at the foot of the linked page.