Buy to let property insurance, some times also known as the owners of residential insurance is needed if you have a home and / or for tenants of flats – how short or long term basis. Usually you can buy cheap buy to let property insurance if you rent five or fewer properties in the UK than in the case where rents are more than five properties, as in the case of the former you are seen as small-time landlord with small businesses, while in the latter you are seen as full blown property owning company.
If you plan to rent five or fewer properties, or five or more properties, however, is the side of the issue, since in both cases you must ensure that you have at least a minimum level of insurance required in order to protect themselves. Consequently, the number of properties you will have an impact only to the extent that insurance premiums are concerned. However, if you want to become the owner of the property upon delivery of the business, then you must make sure that you have at least the following provisions in your insurance policy:
Insurance against fire any property
Natural Disasters (also known as storm insurance)
Insurance against natural disasters that may occur, for example, when a storm wind to tear off your roof or pipes
What is particularly important if you are fully equipped rental properties. In that case, if you rent without furniture, you may wish to discuss with the tenants whether or not they should be home contents insurance
This should be mandatory, as it will protect you from any claims of your tenants, or any third party (such as their guests) may have for injuries they suffer at the time of your property
There may well be times when the property is empty, let’s say, for example, while you are looking for new tenants. If you rely on income from the rental of your tenants to return the money you borrowed to purchase real estate, you need that you have lost earnings insurance to compensate you during this period
A member of the insurance liability
If you have staff who will visit your property to repair any damage, etc., and to collect rent, then you need to make sure that you have an officer liability insurance in case they are injured while performing out their tasks
Insurance for legal costs
The property owner, you may find you need from time to time retain the services of a lawyer, for example, if your tenants refuse to pay their rent or move out of property for a specified period of time agreed – when you might need to get the eviction notice. As legal costs in the UK can be expensive, you should consider the possibility of insurance against this risk, taking place in the provision of legal costs in your insurance policy.
Despite the above, mostly bare minimum, you need to buy to let property insurance policy, you can also adapt these types of insurance to meet your specific needs, so make sure you talk through your circumstances with your insurance, especially if there is a chance of expanding business in the near future.