Buy to let insurance is a type of landlord insurance that protects a landlord when they lease their properties. It is more specialized insurance compared to home insurance. Unlike standard home insurance, buy to let insurance covers you against many risks. Sometimes things can go wrong; it can be the tenant’s fault, while other times, it can be mechanical faults.
There are many landlord buy-to-let insurance providers in the market. To get the best buy-to-let insurance deal, it is best to shop around from different insurers. You can compare quotes online using insurance comparison tools. You can use the Money Supermarket to compare insurance quotes and coverage. Compare the Market can also help you land on a better buy to let insurance.
Buy-to-Let Insurance Coverage
Most buy to let insurance will cover the following:
- Buildings insurance: It covers damages to building structures due to accidents like fires, floods, vandalism, and storms.
- Contents insurance: It covers the contents of the building that you are letting out. For instance, if it is a furnished house, it will cover fixtures in the house.
- Liability insurance: It covers the tenants and their visitors in case of injuries they may sustain while inside your building you have let out.
- Rental income protection: It covers the landlord for the time the property remains empty due to various circumstances.
- Alternative accommodation costs: If the tenants are forced to move out of the property due to unliveable conditions like fire or floods, it covers alternative accommodation for the tenant.
- Property emergencies: The buy-to-let insurance covers emergencies like break-ins, leakages, and broken pipes in properties.
- Legal protection: It covers the landlord in case someone takes legal action.
How to Compare Buy-to-Let Insurance
When comparing buy-to-let insurance quotes, you need to go beyond just the headline price. Here are two key factors to weigh: Firstly, consider the total cost – can you pay the premium in full for a potential discount, or does the insurer offer flexible monthly payments that fit your budget? Secondly, remember the excess – this is the initial amount you’ll pay towards any claim you make. Choosing a lower excess might seem appealing, but it could also result in a higher overall premium. By carefully evaluating both cost and excess, you can find a buy-to-let insurance policy that offers the right balance of affordability and protection for your investment property.
To ease this process, comparison websites like Money Supermarket can be helpful tools. These services allow you to enter your property details and receive quotes from a range of insurers in one place.
Buy-to-Let Insurance Comparison
- Premierline. The maximum cover for buildings and its contents is £20,000,000, while the minimum excess is £100. Landlord liability is up to £10,000,000.
- AXA landlord insurance. The maximum cover for buildings is 5,000,000 and content is £75,000 with a minimum excess of £200. Landlord liability is up to £10,000,000.
- HomeProtect Landlord Insurance. The maximum cover for buildings is £500,000 and that of its contents is £30,000. The minimum excess for buildings and contents is £250.
- Alan Boswell Group Landlord Insurance. The is unlimited coverage for buildings cover, while the maximum cover for its contents is £250,000. The maximum excess for buildings is £75, while for contents is £250. The landlord liability is up to £5,000,000.
- Thehomeinsurer.co.uk. There is an unlimited maximum cover for buildings while that of contents is £100,000. The minimum excess for buildings is £100. The landlord liability is up to £5,000,000.
How Much Buy-to-Let Insurance Costs
The premiums payable for buy-to-let insurance depends on the following.
- The size of the property
- The location of the property
- If you have claimed before
How to Get Cheap Buy-to-Let Insurance
If you wish to pay cheaper buy-to-let insurance, this is what you need to do:
Increase excesses. If you opt to pay a higher excess, you can reduce the cost of buy-to-let insurance significantly.
Buy insurance online. It is cheaper to purchase insurance online through insurer’s websites. You also get a chance to compare insurance quotes online.
Pay policy annually. Monthly insurance payments are costly in the long run. As such, it is best to pay for buy-to-let insurance annually.