Buy-to-let insurances

So you’re thinking of entering the buy-to-let market and wondering what costs will be involved in keeping your investment safe and protected? You’ve come to the right place.

As a landlord, you face more risk than when you live in the home you own. Therefore you will need slightly different coverage to what the standard residential insurances offer.

Here we run through the main insurances that are available to you. Some may be a requirement of your lender, that’s why it’s important to know about each type of insurance and what it can offer.

Landlord building insurance

Many lenders specify that you must have landlord building insurance in place as a condition of lending to you. This type of insurance will protect against any issues that might result in replacement or repair work to the building’s structure, for example, subsidence, fire, burst water pipes etc.

Landlord contents insurance

As it is for your home, contents insurance for landlords is optional. If you choose to take it out, this kind of insurance will cover you against damage or loss of any fixtures and fittings you have supplied to the residence. This would include white goods such as the fridge, washing machine and carpets. The belongings of your tenants would not be included under your cover, they would need to take out their own contents insurance.

Portfolio insurance

Portfolio insurance might be a good option if you own five or more properties. This allows you to cover, in one easy-to-manage policy, the buildings and contents (if you want it to) of all the properties you let out.

Home emergency cover

Home emergency cover is available as an add on to standard building insurance. It is optional but can provide peace of mind that in the event of an emergency you won’t be required to pay a large sum of money at short notice. Home emergency cover can provide assistance should you need certain services such as plumbing and heating, roofing, drains and sewer blockages, lost keys or infestations of insects or rodents.

Rent guarantee

If you’re concerned that you might end up with tenants in the property who are unable to make their rent payments, rent guarantee can be a good way to counter the worry. If for any reason the tenants can’t pay, your insurance will pay out to cover you.

Legal expenses cover

Sometimes, when things go wrong, you will need legal support to help you recover costs or remove tenants from your property. Legal expenses cover will mean you won’t be penalised financially.  If you need legal protection to fight for compensation for property damage, recovering rent arrears, repossession or defence costs your insurance should kick in to help you cover the costs.