The Quick Guide to Landlords Insurance: 3 Elements for New Property Owners to Bear in Mind

With buy-to-let market growth continuing to drive economic expansion in the UK, it should come as no surprise that there are new entrants to this sector on a daily basis. This makes perfect sense, as vibrant and exciting markets always capture the imagination of investors and entice them with the promise of viable returns. The residential buy-to-let market is a difficult environment in which to generate profit, however, as it is a relatively complex sector with many elements to consider.

 

3 Things for New Residential Landlords to Consider

 

With this in mind, let’s consider three crucial aspects of buy-to-let property investment and how they impact on property owners. Consider the following: –

 

  1. The Viability of Landlord Liability Insurance

 

According to this website, tenant claims for personal injury have increased by a staggering 85% in the last decade alone. With awards of more than £100,000 not uncommon in some instances, it may be worth investing in landlord liability insurance as a way of providing additional security for your investment and remaining capital. This protects you in the event that a tenant is injured at your property, so long as you have complied with building regulations and provided a safe living environment.

 

  1. Landlords Content Insurance

 

While contents insurance is not necessarily something that landlords need to concern themselves with once they have leased a property, this may be something to consider if you are letting furnished property. As tenants can tailor their contents coverage to only include items that they own, you may find that pre-existing furnishings will not be covered by standard policies. This can be negated with landlords’ content insurance, however, which can be sourced for a competitive fee and can prove invaluable in the event of fire, theft or deliberate damage.

 

  1. Loss of Rent Insurance

 

Just like all demographics, not all residential tenants are created equal. This can create issues when letting property, as some may run down your home and cause considerable damage to the structure and interior. When these tenants leave, you may be forced to remove the property from the market for a short time while you execute repairs and make the property inhabitable once again. This is why investing in loss of rent insurance is such a wise move, as it can provide coverage for up to 20% of the total buildings value and enables you to accrue income while the property is void.

 

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