Failure to take out buy to let insurance could cost you a small fortune in time and money. No one can predict the future and accidents strike all the time. Ask yourself how you could afford to meet the cost if your property was raised to the ground as a result of fire or rioting or destroyed by flooding.

There are several aspects to consider when taking out landlord insurance, below we guide you through the insurance maze and highlight the pitfalls novice landlords should watch out for:

Even if money is tight, never be tempted to underinsure your property – while you may save a little money in the short-term; this pales into insignificance compared to the money you will have to fork out if disaster strikes. Indeed, you could be left out of pocket to the tune to tens of thousands of pounds. Failing to insure your property or underinsuring it is simply not worth the toll it will take on your peace of mind.

Always double check the level of excess on your landlord insurance. This is the sum of the claim you will be required to pay first before making a claim on your policy. The larger the level of excess on the policy typically means the cheaper the landlord insurance policy will be. However, try to avoid going for too high an excess as it will preclude making a claim for many of the smaller items and white goods in your let property. Try to opt for an excess of around £100.

Remember, landlord insurance typically excludes theft by the tenant, so if an tenant unscrupulous clears out with all your fixtures and fittings you will need to cover the cost of replacement yourself. As such always make sure this aspect of potential loss is adequately covered by the tenant’s deposit.

Give careful thought to the type of disaster you want to protect your buy to let investment from and then shop around for the best insurance deal on the market.

If you are pushed for time, it may be tempting to purchase landlord insurance from your high street branch or your existing home insurance provider but doing so will leave you out of pocket.

By seeking quotes from one insurance company you are not profiting from comparing several like for like quotes, your insurer is also unlikely to tell you about any of your chosen policy’s shortcomings.

A specialist buy-to-let insurer has unique experience in this market and understands the nitty- gritty and hard realities of buy to let and can help put together a bespoke policy that will meet your individual needs. Their experience in this markets also means they will be able to offer you more competitive rates.

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