You Have a Buy-to-Let Property: Know About Landlord Insurance Policy?

There are important things to consider when you are a landlord of a mortgaged property that you intend to let out. Did you know that most lenders require you to have the appropriate insurance in place – and that some lenders even insist on certain clauses being mandatory in your insurance policy?

You can usually find out what the lender’s requirements are by looking at the terms and conditions of your loan agreement.

Landlords Insurance

When it comes to landlords’ insurance, you will need a specific insurance policy, this should not be confused with your typical buildings insurance. Landlord insurance usually has several additional clauses in place that are relevant to rental houses, and not only protect the building but also usually cover liability as a landlord should there be an incident that impacts your tenants.

Typical landlords’ insurance also covers risks that standard home insurance (such as flooding, and water damage) policy has in place, but also covers additional clauses in place to cover risks such as damage by tenants, unpaid rent, and injury to tenants, or their guests.

It is important to have the right policy in place, and usually, a mortgage broker will be able to point you in the right direction of a good insurance broker or could also provide insurance to you directly when taking out a mortgage with them.

Landlords’ policies are important, as they not only protect your property but also protect your tenants, which is required from a compliance point of view. Dependent on the nature of your rental, you may want to consider if you need to take our landlord’s contents insurance (this is only to cover your own belongings in the property you are letting out), tenants will need to take out their own content’s insurance.

Finally, on a side note, there will be certain documentation that you will need to have in place for your own records, such as relevant safety certificates, ensuring your appliances are compliant with current safety standards, and that you have appropriate fire measures in place such as fire alarm, extinguishers. 

Would you like to discuss your mortgage options?

As independent mortgage brokers, we have access to comprehensive mortgage and insurance markets, giving competitive options and prices across residential and commercial products. Get in touch to see how we can assist.

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