Property Owners insurance is designed to provide cover for the buildings and/or contents for properties that you own but let out to other people to live in, whether directly or via a letting agent.
Should you let your home out it is extremely important that you have the correct cover in place. The reason for this is that a standard buildings and contents cover will not cover you correctly
and in fact Insurers would be well within their rights to refuse a claim outright.
What Is Property Buy to Let Buildings Insurance?
Buildings Insurance will protect the main structure of your home and permanent outbuildings (On the same plot of land)against set perils. Cover does vary between Insurers however most policies will protect
your property against the following perils:
Fire
Lightening
Explosion
Earthquake
Riot
Vandalism/Malicious Acts
Storm or Flood
Subsidence/landslip/Heave
Theft or Attempted Theft
Escape of Water
Collision
Some Insurers may also cover for accidental damage for an additional premium charge
Please note that generally damage caused by the tenant will not be covered. Some insurers may include this for an additional premium charge.
Why Should I Insure My Property For?
The buildings of your property should be insured for the cost of reinstating (Or rebuilding cost (RBSI) as it is more commonly known), your property from scratch should
it suffer a total loss, for example a fire. This figure should include the cost of clearing the site following the loss, architect fees and then the main cost of
rebuilding the property.
The RBSI is not to be confused with the purchase value or the current value of your home as this can differ greatly
If you are in the process of buying or remortgaging on a property the RBSI is normally shown on the mortgage valuation carried out by your mortgage company.
Does The Type Of Tenant I Let My Property To Make A Difference?
Simply put yes! Your policy needs to be as accurate as possible this includes covering for the correct type of tenant.Generally properties that are let to professional
or working people attract a far lower premium than those that are let to students, Housing Associations, DSS or Asylum Seekers. The reason for this is the risk level
associated to the type of tenant.
What Let Types Are There?
A let type is the type of tenant that your property is let out to. Insurers normally break the let types in to 6 different risks:
Professional/Working Persons Let-
The occupants are employed and are not receiving any form of housing benefit
Student Let-
The property is let to students in higher education, at university for example
DSS Let-
This is for tenants where all or part of their rent is paid for by the Local Authority
Asylum Seeker Let -
The Property is let to the Local Authority or Government who house Asylum Seekers in the property awaiting their
immigration hearings
Multi Occupancy-
This is where their maybe a number of tenants living in the property all with their own tenancy agreements.
They each have their own rooms but share a communal kitchen and bathroom
Bedsit-
Same as multi occupancy but their tenants have cooking facilities in their own rooms
In this Section
What is Property Buy to Let Insurance?
