After you have bought a property to let out, made sure it complies with health and safety legislation and redecorated it according to which market you’re hoping to attract, the hard work doesn’t stop there. You will still need to have a think about what landlord insurance policy to take out that will offer you the best protection for your needs.
Here are some things you need to consider when you start looking into landlords insurance.
Do you just want building insurance?
When looking for landlords insurance, you will be asked whether you just want buildings cover. This protects the actual property, as well as its garden and shed or garage if it has these. Therefore, if there is any damage to the building, you will receive money from your insurance provider to cover the cost of fixing it.
This tends to include damage to the outside or inside of the property, so it is definitely worth getting comprehensive cover when letting it out. If you’re concerned that your tenants may cause serious injury to the house or flat, it is a good idea to read the conditions of insurance policies to ensure you are adequately protected.
Will you include contents insurance?
You can also find policies that include contents insurance. Therefore, if you’re letting out your property as fully furnished, it is important to make sure your fixtures, fittings and furniture are covered.
Each insurance product varies significantly, so which one you pick will depend on how many contents you are putting in the property before you let tenants move in. You may, for instance, offer an unfurnished house or flat, in which case, it is up to your renters to take out contents insurance to cover the cost of their furniture should they need it replace in the event of damage or theft.
Insurance against lost earnings
Another thing landlords need to consider is protecting their finances should they go through challenging periods of time with regards to their tenants. If, for example, the property is empty for a long period of time or they suffer from rental arrears as a result of their renter not paying their monthly fees, they can look for a policy that offers compensation for these occasions.
Not all insurance providers offer this cover, so if you’re particularly keen on having it, look for a policy that includes protection against loss of earnings as a condition.
Extras you might consider
If you really want to protect yourself and your finances, you might be interested in getting extra clauses on your insurance policy. For instance, some products don’t include loss of earnings, but allow you to add this on should you wish to.
Similarly, you can get employers’ liability protection cover if you employ members of staff as part of your buy-to-let property business. Should any of your employees cause themselves an injury while at work, this will protect you against any legal claims they may take against you. By having protection, you won’t have to incur steep lawyer costs as your insurance provider will cover these expenses for you.
Weighing the benefits of cheap cover
You might be tempted to opt for the cheapest offer you’re given, but make sure you read the terms and conditions carefully. While the least expensive option might look the most attractive, take a look at the excess on each condition.
It might be that the cheapest premium has the highest costing excess, so you will have to pay a lot of money yourself before you get cover from your provider. Therefore, the least expensive product might not actually be the most cost-effective. Research medium-priced policies and look at their excesses to determine whether they the best options in the long term, as you’ll get more use out of the protection by not always having to pay steep excess charges.
When you’ve researched all the options, you’ll be in a better position to make your decision regarding landlord insurance, and you can get the best cover available that will suit all your needs and requirements.
Image courtesy of http://theshepherdgroup.ca/