Scrutton Bland Property Newsletter Summer 2017

Top tips for buy-to-let insurance

As the landlord of a buy-to-let property it is crucial that you have the right insurance in place; a standard home policy is not always adequate. W hile tenants will need to arrange for their own contents insurance, as the property owner a landlord must have the correct covers in place to ensure that the building itself is covered, and in the case of furnished lettings that any property is protected. If your property sustains damage through circumstances such as fire, flood, burst pipes or subsidence, despite who is to blame, the landlord is often expected to foot the bill so having the right insurance in place could protect your livelihood when facing significant repair costs. It is also worth remembering that specific insurance cover is required if the property is being leased as a business or commercial property.

The most important tip is to understand the different types of cover which are available to you and which are most suitable for your needs. These can include: 1 Buildings cover Check your buildings cover includes not only the structure and fabric of the property itself but also includes walls, doors, gates, drives, paths and outbuildings. 2 Contents cover If you are letting a property as furnished or part-furnished then you should ensure you have cover for items such as carpets and curtains, and white goods such as washing machines. A landlord’s contents policy does not cover property which If your rental property is damaged or uninhabitable through an ‘insured peril’ such as fire or flood, you should consider cover to meet any shortfall if the property cannot be rented out whilst the repairs are being undertaken. 4 Property owners’ liability for compensation and third party legal expenses This is a flexible option which is usually up to £2,000,000 with the option to extend to £10,000,000. 5 Legal advice cover This provides you with access to a 24-hour legal helpline for advice when you need it. belongs to the tenant. 3 Loss of rent cover

Another important tip is to think about any additional coverage that may be required, depending on the type of property owned. These options can include: Accidental damage cover To cover repairs to structure, fixtures and fittings Loss of rental income If your tenants miss payments Specific leaseholders  Such as professionals, students, local authority tenants Subsidence Ground heave and landslip cover Terrorism cover  An important consideration if your property is located in or near a city centre In the case of multiple property portfolios there may be additional complexities, and it can be difficult to arrange insurance for each property. This is where a professional insurance broker can provide expert advice on specialist cover.

To find out more about the insurance covers available to landlords, call one of our insurance teams for advice. Scrutton Bland have insurance specialists who regularly

work with clients in all areas of the UK. Call 01206 838400 or 01473 267000 .

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