How it works
It comes in a few different packages, but is essentially the same set up as home insurance. Buildings, Contents, but with added Liability Insurance.
Generally, most mortgage providers will probably not be happy to lend you the money on a Buy To Let mortgage without you having some form of Buildings Cover in place. It covers the structure of the property, as well as the cost of rebuilding it if it’s irreparably damaged, it’s really important.
Contents Insurance covers most items inside the property and is especially important when you have tenants as it will cover the cost of repairing or replacing fixtures and fittings should they be damaged or broken in any way. Some policies can be extended to cover accidental damage too- helpful! Please be mindful that the landlords’ Contents Cover will not protect the tenants personal belongings, and they should always be advised to take out their own policy.
Liability Insurance (or Public Liability Cover as it’s sometimes known) covers you if you or your tenant suffers an injury in your property. It protects against unforeseen accidents and often have extremely high coverage limits stretching to millions of pounds so that you are able to pay compensation should you be held legally responsible for an accident in the property.
All of these are important policies, and we would advise that a landlord take out all 3 without hesitation, but we will work to your needs and your budget in order to get you covered as well as possible in your current situation.