With an increasing amount of people opting to become renters rather than buyers, getting a stake in the private rental market can be extremely fruitful. Whether you are a start-up property developer or have aspirations in the near future to take the plunge and set up a business, ensuring you have a buy-to-let property insurance package in place that is tailor-made to your needs is absolutely essential.
Being a landlord comes with a wide range of risks so preparing for unforeseen circumstances should definitely be at the top of your to-do list. Of course, every landlord’s property portfolio is different and this needs to be looked at closely when deciding on the best insurance policy to go with. Here are some aspects to take into consideration:
There will always be periods where flats, houses and rooms in share houses are empty. This could be because you are between tenants, are having difficulties filling properties or need to do some redecorating. Whatever the reason is, though, having spaces unoccupied for a long duration can pose added security risks and getting full cover in case of certain scenarios is well advised.
Broken boilers, power cuts, plumbing problems, vermin infestations – there are many situations where immediate action is needed to solve problems in your rental properties. Having an emergency solutions element in your insurance package keeps you covered.
Whether property damage is caused by the weather or acts of vandalism, repairs can be extremely costly and having landlord insurance in place prepares you for a rainy day and provides peace of mind.
Subsidence – a downward movement of the ground supporting a building- can be a disaster for the structure of your property. This occurs when the soil beneath the building, which is usually clay based, shrinks or swells causing a landslip. Cover for this occurrence can be added to your insurance package.
As a landlord, you are legally responsible for the people on your property and are therefore at risk of being sued for compensation should somebody be injured on site and decide to make a claim against you. Even if you take the highest amount of care in ensuring your properties are safe, there is always a chance of this happening.
There is always the chance of being inflicted with bad tenants that fail to pay you what is owed. This is where rent guarantee protection comes in handy. Being protected from non-payment of rents and covered for the legal costs of having to evict tenants is an important component to include.