As the buy to let market continues to boom, many landlords, new and experienced, are purchasing more properties. While buying to let is one of the best ways to make a self-employed income, doing so comes with its pitfalls.
Many landlords worry about whether they will receive their rent on a regular basis, as well as what will happen if they face legal costs or sustain damage to their property. Fortunately, landlord insurance can remove some of these worries, making renting out a property far less stressful.
Why is landlord insurance so important? There are many situations that you can find yourself in as a landlord that will be made easier through the use of landlord insurance. If your property becomes uninhabitable, you will be faced with repair costs, as well as the cost of finding somewhere alternative for your tenants to stay. Such situations could also lead to legal costs, as well as the costs of lost rent.
A similar situation can arise when your tenants start to fall behind with payments. Legally, eviction proceedings cannot begin until payments are two months overdue, meaning you miss out on rent for two months. Fortunately, landlord insurance can prevent severe financial losses through the use of a rent guarantee scheme.
Legal & Emergency Cover
As any landlord who has faced legal trials will know, the costs can soon mount. For a small premium, you can receive protection against these high costs. The amount you pay will naturally vary depending on the nature of the premium and insurance, but will ultimately save you money in the long-term.
Emergencies are also covered that may not be included in the average tenant’s policy. For example, if a pipe bursts or a boiler breaks down during the high-peak winter periods your insurance will cover you for costs incurred.
So who would benefit from landlord insurance? The simple answer is that all landlords will benefit from this type of insurance. However, there are certain groups of landlords who stand to take advantage more than others, as comprehensive insurance is more vital.
For example, those who buy to let in student areas and subsequently rent their properties to students are more likely to experience losses in the form of properties that have been damaged. However, in a recovering economic climate, no landlord can guarantee that they will receive their rent. Using landlord insurance protects all landlords, in many circumstances.
We go above and beyond to provide you with a policy that caters to your needs at a great price.