What's The Difference Insurance For Buy To Let Properties

Even though a buy to let insurance policy isn’t a legal requirement it would be very unwise for a landlord to risk not taking out insurance cover for their buy to let property. Making sure that your property is properly insured means that you have protection against any costs that might be incurred if the property, or its contents were damaged whilst it was being let out. Also, if the property is mortgaged then the bank would usually insist that the building is properly insured.

Not only should a landlord take out buy to let insurance but they should also make sure it is the correct type of insurance. Ordinary household insurance policies normally contain clauses that will not cover a property if it is rented out. It is therefore extremely important for landlords to make sure that they have a specialist Landlord Insurance policy in place which gives the right type of cover for their buy to let property.

Landlord insurance gives a combination of cover benefits that are contained in one package and this provides landlords with the essential components necessary to make sure that their investment property is well protected against damage or loss.

Some of the risks that are covered by a Landlord Insurance policy are:-

- Fire
- Theft
- Malicious damage / vandalism
- Leakages
- Flooding
- Smoke damage
- Burst pipes
- Subsidence
- Impact from vehicles, aircraft, falling trees, masts and aerials

Liability Insurance is usually included with Landlord Insurance and loss of rental income would be covered if the tenants in the property need to be re-housed following a claim. There are also extra options you could add to the policy, such as accidental damage cover, legal and professional fees cover, etc.

If the property is left unoccupied for any extended periods of time, say 30 days or more, then there would normally be reduced levels of cover. However, you may be able to arrange for your Landlord insurance policy to include reasonable periods of time when the property will be unoccupied. The cover provided by the insurance policy should ideally allow for an initial period of up to 60 days and after that for between letting periods of up to 90 days.

It is quick and easy to arrange for low cost insurance for buy to let properties and there are many insurance companies that provide low cost insurance. Using the Internet to do price comparisons for Landlord Insurance is very worthwhile and could save you a lot of money, however it is always advisable to get several quotes to enable you to make the best choice. Specialist brokers can offer sound advice and can usually offer competitive quotes.

Another way to make sure you can obtain the best value, low cost Landlord Insurance for buy to let property is to ensure that it is always well maintained. If the property is kept in a poor state of repair, it could affect the premium.

By Cathy York
Published: 11/26/2010

How To Get The Best Homeowners Insurance

How To Get The Best Homeowners Insurance

Choosing the Appropriate Policy

HO-1: This is the most basic homeowners policy that covers damage due to the following factors: fire, lightning, smoke, vandalism, theft, ice, snow, windstorm hail, riot and volcano eruption. Since this policy provides very basic coverage, its popularity has faded over the years.

HO-2: In addition to insuring against the above mentioned events, this policy protects against loss due to the following: freezing of plumbing, flooding due to plumbing overflow and heating system malfunction. Generally, mortgage lenders insist on homeowners insurance. This is because the house functions as their collateral. While HO-1 covers damage due to 11 factors, HO-2 protects against 17 factors that may result in loss of property and belongings.

HO-3: This policy provides protection against the perils of nature. The policy premium may be higher in case of homes located in areas prone to hurricanes and windstorms. The policy also covers up to $2000 worth of jewelery against loss due to theft. The HO-3 policy covers the cost of rebuilding the house in case the house gets destroyed. Just like the HO-2 policy, HO-3 covers the cost of damage to the house on account of flooding due to plumbing overflow and heating system malfunction. Liability suits that may be filed against the homeowner, by people who may get injured on the homeowner's property, are also covered by this policy. However, it provides no protection against floods and earthquakes. Hence, a homeowner is expected to buy additional insurance against flood and earthquakes.

HO-4 and HO-6: These policies do not cover any damage to the building. They only provide protection against loss of personal property. Hence, it is ideal for condominium owners and tenants.

HO-5: This is the most comprehensive policy. The cost of the policy is 15% more than the cost of HO-3. In addition to including the coverage provided by HO-3, this policy insures against loss of building and property due to a number of factors. Buying a package that provides protection against a number of factors gives peace of mind to the owner. Also, it is cheaper to buy a single policy that protects against a number of factors rather than buying individual coverage.
Shopping for the Best Quote
A homeowner should shop around for the best quote after deciding on the appropriate policy. The homeowner may get a good quote by installing motion sensors and surveillance cameras. In general, arming the house will help the homeowner get a good deal on the policy. The insurance company should have strong fundamentals and should not be involved in any insurance fraud. The homeowner should also be aware of any consumer complaints against the company.

A homeowners insurance cover is a must for every responsible homeowner. The amount of HO policy coverage for personal belongings is generally half of the amount of coverage provided for the home. Although a HO policy remains in effect, a landlords insurance policy is a must for houses that have been rented out or leased. This is because 'HO policies' are only designed to provide adequate coverage for owner occupied houses.

By Aparna Iyer