Insuring buy to let investments – Good value for money or not?

publication date: Dec 15, 2009
 | 
author/source: Guest article by Terry Lucking, Belvoir! Peterborough
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It is a statutory requirement for landlords to insure the freehold building for all buy to let dwellings, but with the increasing cost of mortgages, plus more and more legislation over deposits and safety matters (particularly with the Housing Health and Rating System), will you be tempted to try and save money by choosing cheaper insurance?

Demand for buy to let dwellings continues to increase with pace and with it so are the risks! The number of migrant workers is growing rapidly, many of these people do not speak or read English fluently and many have very different cultural standards, which may affect how they live and how they use a dwelling.

All landlords should insure to protect themselves and their assets from a claim in respect of their legal liabilities to their tenant, their agent or any visiting contractors. The list below represents some of the important points a policy should cover protecting you and your investment:-

  • injury to your tenant, a visitor, a contractor or a third party
  • accidental damage caused by the tenant a visitor or a contractor
  • malicious damage caused by tenant or caused by a third party
  • rent if the dwelling is rendered uninhabitable due to an insurable incident
  • legal expenses relating to physical  possession of the property
  • legal expenses relating to disputes over dilapidations 
  • legal expenses relating to tenants causing a nuisance
  • legal expenses relating to disputes over repairs and renovations 
  • legal expenses relating to disputes over health and safety

Many standard policies exclude malicious damage by tenants, accidental damage by tenants, cover for your furnishings, and restrict cover when the property is empty between tenants.

Check to see if your letting agent is authorised or regulated by the Financial Services Authority in the mediation of general insurance. If so, they should be able to provide you with advice to introduce or sell you suitable cover for your rented property.

For more information on insuring your Buy to Let in Peterborough, contact BELVOIR! Peterborough on 01733 286939 or enquiries@buytoletinpeterborough.co.uk.


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