Buy To Let Property Insurance in the UK

 

Buy-to-let property insurance, also known as residential property owners insurance, is required if you rent out your house or flat to tenants on a short or long-term basis. If you rent five or fewer properties in the UK, you can usually get cheaper buy-to-let property insurance than if you rent more than five properties, because in the former case you are seen as a small time landlord with a small business, whereas in the latter case you are seen as a full-fledged property-owning company.

Whether you intend to rent five or fewer properties or five or more properties is a secondary consideration, as in both cases you must ensure that you have at least the minimum level of required insurance to protect yourself. As a result, the number of properties you own will only have an impact on your insurance premiums. That being said, if you want to become a property owner with a letting business, you must have the following minimum provisions in your insurance policy:

Fire

 

Insuring against any fire on the property

 

Natural Disaster (also known as tempest insurance)

 

Insuring against natural disasters that may occur, such as a dangerous storm where the winds tear off your roof or guttering

Theft

This is especially true if you rent out fully furnished properties. If you are renting out unfurnished premises, you may want to discuss with your tenants whether or not they should have home contents insurance.

Public Liability Insurance

This is a must because it protects you from any claims made by your tenants or third parties (such as their guests) for injuries sustained while on your property.

Lost Earnings

There may be times when your property is vacant, such as while you look for new tenants. If you rely on rental income from tenants to repay the money you borrowed to buy the property, you must have lost earnings insurance to compensate you during this time.

Author: RabnawazToor