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Who are the best for buy to let insurance?

best for buy to let insurance

For those landlords who are asking? ‘Who are the best for buy to let property insurance?’ Then these tips will help you.

Essentially, you need to compare the offers between buy to let landlord insurance firms to ensure that your rental property gets the cover you need and at the price you want to pay.

However, in order to obtain the best buy to let insurance for meeting your property needs, you will need to:

  • Decide which type of insurance cover you need
  • Compare various insurance quotes.

Buy to let cover

So, what type of buy to let cover do you need?

  • Building: Usually, as part of your buy to let mortgage agreement, you will be needing buildings insurance. This means that at the very least, there will be cover for the rebuild costs of your buy to let property.
  • Contents: This level of cover will protect against damage of your possessions inside the property. If yours is a furnished rental home, then this coverage will be crucial. Also, point out that your tenants will have to take out their own contents insurance policy because yours will not cover them.
  • Public liability: This is a good idea to help protect a landlord against any injury or damage suffered by a tenant or a visitor because of a fault in the property. Landlords need to appreciate that an injury claim can lead to an expensive process, so this could be important cover to buy.

Your insurance cover needs will also depend on:

  • Whether your rental property is furnished because you will need contents insurance to cover white goods and the furniture. Some landlord policies will offer this as a standard feature but check out how much is covered.
  • The number of rental properties you own – there is the potential of having portfolio cover from buy to let insurers so you can insure all of your properties on a single policy. This usually works out cheaper and there’s only one renewal date to remember.
  • The type of tenants – it’s probably worth including accidental damage if you are renting to young families with children or to students. Again, some insurance firms offer this cover as a standard feature but others may have it as an add-on that costs extra.
  • Rental insurance – if you are relying on rental income to pay your buy to let mortgage, then it’s worth looking at rental insurance. Should a tenant default, then the insurance will cover the lost rental income and also cover the cost for eviction.

Best buy to let insurance coverage

When searching for the best buy to let insurance coverage, you should compare quotes so you will need to understand:

  • Policy cost: Consider how much the insurance cover costs and whether you have to pay in full or whether the insurer will take monthly payments.
  • Policy excess: Compare the insurance policies to see whether they have an excess amount that you’ll need to pay should you make a claim.

It’s worth highlighting that any cheap landlord insurance may be cheap because it has a high excess amount so you will end up paying more if you had to claim.

It’s important that you don’t just choose the cheapest policy when you need to compare offers because you are looking for the quality of the insurance cover to ensure you are not out of pocket should the worst happen.

Tips to save money of buy to let insurance

There are various ways and means of saving money when you begin the search for a landlord’s buy to let insurance cover, including:

  • Buying online: An insurer will usually offer a discount when you take out cover using their website. If you think theirs is the right policy, then there will be a link to pay directly.
  • Higher excess: We mentioned already that cheap landlord policies tend to have a higher excess. So if you want to save money, choose a policy with a higher excess level. However, you’ll need to have the cash to pay this amount should you make a claim.
  • Pay annually: While many landlords may decide to pay monthly via direct debit, you may find the insurer offers a discount should you pay in full.

Best level of landlord’s cover

This then leads onto the question of who will provide the best level of landlord’s cover.

This is not a straightforward question to answer because a lot depends on your circumstances as a landlord, how many properties you want to cover and how much you want to pay.

There are some very good buy to let landlord insurance providers, including:

  • Axa Business insurance
  • Saga
  • More Than Business
  • Simple Landlords Insurance
  • Direct Line for Business.

Landlords could also look at the offerings from LV=, Aviva, Just Landlords and HomeLet.

It’s also worth taking the time to see whether a potential insurer has any online reviews and check what their customer feedback is.

Also, you could check for conversations on various landlord forums since seeking advice about landlord insurance, specifically for a buy to let property, is a common thread on many of them.

It’s also important as part of your process to select the right landlord’s insurance for meeting your needs, that you don’t believe that they are all offering the same level of cover.

For example, some insurers may provide £5 million in property owner’s liability cover, while rivals may offer just £2 million of cover and some may not offer this at all. This level of cover will affect the policy price.

This issue also extends to the contents cover and some insurers will offer cover as standard but rivals will have these as pricey optional extras.

Essentially, there is no legal requirement for a buy to let landlord to take out insurance cover, but these insurance policies will help to protect against the unpredictable dangers such as vandalism, flood, fire, and also offer public liability should a tenant injure themselves while in your property. You need to take the time to source the correct policy for you and ensure that it meets all of your needs – even the unexpected ones.

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