Insurance can be a very tricky and complicated affair for landlords

Insurance can be a very tricky and complicated affair for landlords. A read through this recent news story will prove this http://www.property118.com/index.php/warning-your-landlords-insurance-may-be-invalid/33345/. That said – you shouldn’t let this put you off as letting property can be very profitable if you go about it in the right way. Getting the right insurance policy is one of the most important steps you will take as a landlord so it’s a good idea to be as well informed on the subject as possible.

Buy to let insurance is another name for landlord insurance. They both are designed to provide cover for the myriad of risks that are prevalent for landlords. These risks include but are not limited to theft, structural damage, vandalism, squatters, injury claims and loss of rent. A good insurance policy will provide cover for all of these risks. The amount of cover provided however will vary depending on the provider. You should assess where your biggest risks come from and ensure that you have very comprehensive coverage for this.

You should also do as much as possible to ensure your buildings are safe and secure. This means having alarms and good quality locks fitted to your buildings. You should also aim to purchase property in low-crime areas. A lot of the risk posed to properties comes from the general public and when the buildings are in high-crime areas the risk increases dramatically and so will the cost of your insurance.

Getting a Policy

Getting a buy to let insurance policy requires that you do your research and are very thorough. You have to strike a balance between what you can afford and what you must have covered. The risks to your properties may be completely different to that of another landlord so a one-size-fits-all policy is no good. Getting the correct policy for your needs is a big step in becoming a successful landlord so it is one that should be given much consideration.

For this reason a lot of landlords will choose to get their insurance through and broker. An insurance broker will contact several different insurance companies on your behalf and work to get you the best policy they possibly can. They’ll also be able to advise you on how you can reduce the cost of your policy. This usually involves securing your properties as well as you can and where possible getting a group policy.

Having buy to let insurance for your properties is not just a legal obligation but it will allow to focus your energy on the day-to-day challenges on being a landlord. Owning and letting property can be an excellent way of making money but it comes with a lot of risks. By having a good insurance policy you neutralize most of these risks which means you can concentrate on more important things.

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