Buying a property with the intention of renting it out and building up a property portfolio is one of the many ways people build their future foundations. Investing in property is one of those investments that even when the market drops, the investment is still worth money.
At the same time, giving complete strangers access to your property and letting them live in the property comes with a fair amount of risk. The biggest mistake many buy to let owners make is believing that regular household insurance will protect them should something go wrong while they have tenants living in the property. This is not the case.
In fact when renting a property out you need specialised landlords insurance to protect you and your investment.
As a property owner, even if you have tenants staying in your property, you remain responsible for the structure of the building. This means the building itself, garages and even fencing. Should a tree blow down during a storm and smash into the side of the property, it is your responsibility to repair it.
It is the property owners duty to ensure the property is habitable at all times, what this means is that you are responsible to ensure there is running water, the plumbing works effectively and there are no problems with the electricity. When things go wrong and your tenant phones to advise that there is a leak that has flooded the property, you are responsible for the repair, which is why landlords insurance offers you this protection.
Landlords insurance also offers you that valuable public liability cover that you need when giving the keys over to tenants and giving them the ability to live in your property. Public liability cover will protect you against any claims that result in an accident at the property which is seen as the owner’s responsibility.
This could be an uneven walkway, the ceiling collapsing on the tenant and causing serious injury or the boiler bursting and the tenant slipping in the water as they rush to turn everything off.
You are legally responsible for any public liability claims against you and these can amount to thousands. Without the adequate landlords insurance in place, you could end up paying this amount out of your own pocket.
Accidental damage is often a top priority for any property owner. You can’t always budget for when things go wrong, especially if you have a number of properties you rent out. The smallest thing such as the boiler requiring maintenance or an electrical fault, can set you back a few hundred Pounds.
A good landlords insurance policy will protect your building, accidental damage and your liability cover.
Many property owners choose to add additional cover to their landlords insurance. This can include a number of different cover options to ensure your entire property has the protection it needs