It’s important to make sure you have the right cover in place for your buy-to-let/landlords insurance. Edinburgh-based Property Account Executive, Jamie McKenzie, has extensive experience in this field and offers up some insurance guidance for landlords and letting agents.
Buy To Let/Landlords Insurance Advice
Don’t overlook it
The growth of the buy-to-let market exposes property owners and landlords to risk, so it’s essential that you’re adequately covered for your let property. A buy-to-let property is a major investment and a comprehensive landlords insurance policy is imperative to protect you from any potential damage or losses involved with letting a property.
Know what you need
Normal home insurance policies will not provide the level of cover that you require to protect your assets as a landlord. You may, therefore, be left out of pocket following a loss. Your buy-to-let property is a valuable asset and it is essential you are sufficiently covered in respect of your Buildings & Contents in the event of a loss, such as fire or storm damage.
Get the numbers right
Have your property surveyed for an accurate valuation of your buildings reinstatement sum insured. Landlords Contents provides cover for items in the flat such as furniture, carpets, televisions, electronic equipment and sofas. Make sure that property owner’s liability is in place to cover the costs and damages made towards anyone who has suffered an injury following an accident on your premises.
Search the market
Many insurance brokers offer landlords contents insurance and cover following accidental damage to your buildings as an extra, however, some do offer this cover as standard so it’s worth shopping around.
You can protect against malicious damage or theft by the tenant and for periods of unoccupancy as there are a number of reasons why your property may be empty from time to time, including periods of renovation or between lets. Many insurers will exclude or restrict cover while the property is empty so you need to ensure that you have full cover in place while your property is unoccupied. Any insurance policy should also provide cover in respect of trace and access e.g. sourcing and repairing the cause of damage, such as leaking pipes. Many policies exclude this or offer a low limit of cover.
Manage your losses
Your property may become uninhabitable following an insured loss such as fire or flooding, which would result in a loss of rental income. It is important to protect your income during this period as well as other costs such as temporary alternative accommodation for tenants
Bruce Stevenson Insurance Brokers
We have a specialist property team delivering a market leading proposition, for further details please contact Jamie McKenzie on 0131 561 2408 or [email protected]