If you buy a house, apartment or building (a property to let), you’re running a business activity which the main goal is to make the profit from it by collecting the money from your tenants.
In this article, you will see how and why to let property insurance is important and what it differs from the standard form when the insurance protects the property normally when it’s in continuous use by the owner of tenants.
Property let insurance – when other is not suitable
The difference between this type of insurance and the standard is important for insurers as they consider that there are different risks for the property when it’s occupied by tenants than for one that is exposed to the normal use.
When tenants rent the property, it’s necessary to have the landlord or let property insurance, as a standard form are not suitable anymore.
If you don’t have the let property insurance for the apartment, house or building you’re letting, any claims for damage or loss will be unjustified and likely rejected.
What let insurance covers?
Because of many different landlords, there are also different types of let or landlord property insurance.
A typical let property policy include the following features:
As the building is the primary asset for the buy to let business, you need to protect the whole structure and its integrity. This type of insurance also protects your building from highly dangerous and destructive risks as fire, floods, storm damage, the impact from the surrounding objects as trees and branches and cars, vandalism and theft.
The total insurance of the building protects it from the worst scenarios where the property is completely destroyed and needs to be rebuilt.
Insurance of contents
If you’re a landlord, you surely have some contents that need to be protected and insured from loss, theft or damage.
Liability insurance for landlords
When you own the property, you have the liability to ensure that no one inside and outside your building will suffer from the injuries (tenants, visitors, workers) or damage their own property.
Rental income loss insurance
If you own a property, you already know that it’s a business and if a sufficiently severe insured event damages it, your income may stop because the property that you currently have is impossible to inhabit. Most of the landlords in such cases can get the compensations for their loss.