Protect your Investment

As we are all being encouraged to plan for our retirement with solid savings and investments, more and more people are investing in property today. It is no wonder when you look on the return it is possible to get for your money over the years. Property is certainly an investment that can give an individual a viable monthly income for years to come. With the housing market being priced out of the majority of individuals’ affordability, the majority of would be first time buyers as well as individuals that can no longer afford an expensive mortgage are looking to rent. As a result, being a landlord can be profitable, although renting out property can also be a risk, which is where landlord insurance comes in.

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Landlord insurance can really reassure a property owner that their investment is protected. It will give peace of mind that, whatever happens, the property is covered. However, no landlord is obliged to have any form of insurance. If you want to take the chance that you will get reliable tenants then you can, but it certainly is not advisable because there are more careless tenants than responsible renters. It would be typical to have the former rather than the latter if you did not have insurance!

Depending on who you have your mortgage with, if you do need a mortgage on your property to be able to by it in the first place, they may well insist that you have landlord insurance. After all, whilst they have the mortgage, the property is not strictly yours. If you are applying for a buy-to-let specific mortgage then you could take landlord insurance out with the company holding your mortgage. They will offer specialist landlord insurance that you can often tailor to suit your needs. Very few landlord policies are actually fixed with certain amounts of cover because different properties will need different protection.

If you are renting your property out rather than actually living in it then regular home insurance will not suffice. Home insurance assumes that you will be living there so any damage is down to you. However, if it is down to someone else then there may be questions asked and your claim may be invalidated. Also, home insurance does not go far enough to cover you should anything happen. Landlord insurance goes that little bit further with extra cover to protect your property as much as possible in all eventualities.

Landlord insurance can cover you for almost anything, from structural damage to your property during a storm to personal injury should a fixture collapse on someone to your tenants damaging your property. It will also cover elements like having to re-house your renters if the house flooded, collapsed or was damaged in a fire, for example. These things may or may not be the fault of your tenants but you are covered nevertheless and will effectively be able to claim to restore your investment to its full value.

Always be prepared to disclose everything about your home to any insurance company that you decide to take landlord insurance with. You can invalidate your insurance if you lie or hold information back. This is like any other form of insurance but landlord insurance is particularly stringent because of the likelihood that high-risk individuals will rent the property from you, students for example.

Buying a home to let is a massive investment but can be a very fruitful one as long as you take all of the precautions associated with it. Good insurance will give you peace of mind and allow you to rest easy in your bed at night. Protection like this is always a good idea, so invest in it straight away to avoid expensive bills later!