Tips for new landlords looking for insurance cover

May 1, 2012

Landlords Insurance

Prior to purchasing a buy to let property or deciding to let your property out, you may have given some detailed thought to the situation, so as to ensure that your plans were realistic and made both economic and business sense.

You may, or perhaps should have:

  1. worked out the type of tenants that your property would be most suitable for – a garden, for example, may be more popular with families than it may be for young professionals or students;
  2. established that there was a demand for rental accommodation in your chosen market segment;
  3. looked at the rents being achieved by rental agents for other similar rental properties in the area;
  4. looked at the amount of your time that you may reasonably be able to devote to landlord activities – if you have a number of properties for example or have  a full time job elsewhere;
  5. factored in time when your property may not have tenants and may therefore not be earning you any rental income;
  6. checked that your property conforms to safety requirements with respect to inspections and servicing of gas appliances or fireproofing  regulations for fabrics used in upholstery or soft furnishings;
  7. carried out essential maintenance and refurbishment to get your property looking clean and tidy and as attractive as possible;
  8. checked with your insurance providers that you have appropriate cover for a buy to let property – owner occupier policies typically may not be appropriate when your property in being let out, as you may benefit from the protection of public liability cover and possibly loss of rental income cover;
  9. ensure, if you are renting on a furnished or part furnished basis, that you have taken a detailed inventory and that your insurance includes adequate landlords contents insurance;
  10. satisfied yourself that your mortgage agreement covers you letting out the property – if you don’t have a specific buy to let mortgage then you may need to touch base with your mortgage lender to ensure that your agreement  allows you to let the property out;
  11. drawn up a rental agreement detailing the period of the let, the rent being charged and mutual roles and responsibilities;
  12. asked for and taken up, references for you potential tenants;
  13. made provision for the safekeeping of any deposit you are asking for. You may be able to use a landlord deposit scheme where the funds are lodged with a third party.
Advertisements

Subscribe

Subscribe to our RSS feed and social profiles to receive updates.

No comments yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: