Those who are renting out their properties to other people are referred to as landlords. Since landlords are using their properties effectively as a source of income, they would need to protect their property from any damages. This is why it is important for all landlords to purchase a specific type of insurance policy that will provide them with insurance coverage for any damages that their tenants or uncontrollable events may cause to their properties. These types of insurance policies that building owners rent out their other properties to tenants is often known as the landlord insurance policy.
There are several types of Landlords in the United Kingdom. There are landlords who simply own a second home that they rent out to other people. There are also other landlords who are considered as property tycoons who hold portfolios of ever increasing various dockside apartments. While there are many types of landlords renting out their properties in the United Kingdom, they all share a common factor. This factor that we are referring to is for the need of landlords to protect all of their investments by purchasing the correct type of insurance policy, which is the one mentioned above.
This form of insurance policy that landlords need to purchase is also known in many other different terms. One of the most commonly used terms that refer to this insurance that landlords would definitely benefit from is the buy-to-let insurance. However, while this is the most common term, there are many other terms used to refer to this type of policy. These other terms include let property insurance policy, landlords insurance policy, landlord building insurance policy, and landlord property insurance policy.
Why Buy-to-Let Insurance Policy?
It is important that property owners who make use of their properties as a source of extra income understand the difference between a normal home insurance policy and a buy-to-let insurance policy. A regular home insurance policy will not cover a property that is providing the owner with a source of extra income. In cases where in a property owner makes use of another property to make extra income, he or she would be required to purchase a residential landlord property insurance policy.
Importance of Purchasing a Buy to Let Property Insurance Policy
There are many good reasons as to why it is important for landlords to purchase a landlords insurance policy. First and foremost, when a landlord is able to get the right landlords insurance policy, he or she will be able to relax and feel assured. This is mainly because of the fact that, in the event that his or her tenants will cause damage to the property, the property owner is protected against any financial consequences that will result from the damages done. Having the correct buy-to-let insurance policy provides landlords with peace of mind knowing that their property is in good hands.
The cover that is available when purchasing a buy to let property insurance policy is the same as the cover that is included in a landlords insurance policy. A landlord can also purchase coverage not only for his or her property, but also for all the contents included with the property as well as landlords liability insurance. This type of policy can also include insurance for a portfolio of a single property or a portfolio for several properties.
Claims Covered by a Landlords Insurance Policy
There are many different claims that a landlords insurance policy will provide cover for. Below are some of the most common situations wherein a landlords property insurance will cover the property owner for:
- The property has received massive damages from a fire, but fortunately, all of the tenants were not hurt. But because the property has been majorly damaged, they would need to move out as it will take builders three months to repair all of the damages. The landlords insurance policy, aside from paying for all of the repairs that will be done to the property, will also pay the owner the rent that will be missed out due to not having any tenants during the period when the repairs are being made.
- The tenants are not paying for their rent, but they are also refusing to move out of the property. If the property owner is forced to take this to the court in order for his or her tenants to be evicted and to collect the rent that has not been paid yet, as long as the Legal Expenses cover was purchased, the owner will be compensated for all of the legal expenses.
Factors Used by Insurers to Assess the Premium of a Landlords Insurance Policy Holder
Insurers use different factors in order to assess the premium that they will charge a landlords property insurance policy holder. These factors are used by these insurers in order to assess the risk of the property. Below are just a few of the major factors that are being used by insurers in order to come up with how much they will charge their policy holders:
- Property Location
- Property Age
- Type of Property (Terraced, Flat, Detached, Etc)
- Buildings Sum Insured (BSI)
- Type of Tenants Living in the Property
For those who are looking for cheap landlord insurance policies, this website is the best way to get a landlord insurance quote instantly. Being able to compare different quotes from different insurers is very important, as this will help property owners to be able to find the best provider of landlords property insurance policy that they need.