When insuring a buy to let property, the risks involved vary significantly from those when insuring your residential home with a standard buildings insurance policy. With this in mind it is important to select a purchase a specific buy to let property insurance policy.
Buy to let property insurance is different from regular property insurance in several ways;
Unoccupied property limitations
On a standard residential property policy this limitation is usually about 30 days. This means that should you go away on holiday for more than this and leave the property empty and then have to raise a claim, the insurer can avoid paying out.
Buy to let property insurance policies usually allow a much longer period (e.g. 90 days) to allow for periods of un-occupancy between tenants. This can be very useful for example if your target tenants are students who often vacate the property during the summer months.
High Risk Tenants
Some buy to let property insurance policies require you to tell them what kind of tenant you will or are letting to. Many insurers will refuse cover or demand a higher premium if you are letting to what are deemed to be higher risk tenants such s students, house shares or those that receive housing benefits.
Always inform your insurer
When entering the buy to let market, it is essential you inform your insurance policy. Failure to do so could and most likely would result in any subsequent claim being refused.
Emergency repair cover
Many buy to let property insurance policies offer an add on repair cover. This can provide cover for the costs of emergency call outs of tradesmen, for example if the boiler blows up in the middle of the night.
Read the small print
Finally it goes without saying that all buy to let property insurance policies are different. You should always check the specifics of the policy you choose to ensure they meet all of you needs.