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Buy to Let Home Insurance

Buy to let home insurance is an essential element for real estate investors with rental properties. Buy to let insurance is often referred to as landlord insurance because it offers additional protection to property owners not typically covered in homeowner's policies.

Buy to let home insurance is necessary to protect cash flow in the event of catastrophic damage which results in lost income. Depending on the type of landlord insurance policy, provisions can be included to cover the costs of legal fees associated with property damage caused by tenants or pursuit of unpaid rent.

Not all landlord insurance policies are the same, so it is important to engage in research to determine which insurance provider offers the coverage required. Most policies cover property damage caused by fire or tenant negligence. Some buy to let policies offer additional flood insurance and protect against certain natural disasters. It is important to read the fine print to determine which types of damage are considered "acts of God."

When purchasing buy to let home insurance it is a good idea to obtain a professional home appraisal to determine the current market value. Insurance providers need to know property values in order to calculate premiums. Landlords that under-insure investment property will be stuck paying for rebuilding costs out of their own pocket.

It is a good idea to invest in buy to let policies offering lost rental income. This is particularly true for investors relying on monthly cash flow generated by tenants. If extensive damage occurs that renders the rental property uninhabitable, investors can continue receiving rental income while the property is being rehabilitated.

Landlords offering furnished rental properties should make certain their buy to let policy covers property contents. In addition to covering personal property, some policies also cover flooring, appliances, landscaping equipment, carports, sheds, swimming pools and hot tubs. Buy to let home insurance does not cover personal content belonging to tenants.

Buy to let insurance provides landlords with liability coverage in the event tenants or their guests are injured at the property. In today's sue-happy world, landlords can be sued by their tenants through no fault of their own. Buy to let policies cover legal fees in the event a tenant sues, as well as in instances where landlords file lawsuits against tenants.

Liability coverage should be sufficient to cover the costs of medical payments in the event tenants are injured. This type of buy to let coverage protects landlord personal belongings and financial assets in the event judgment is awarded in favor of tenants.

Landlords who elect to forgo buy to let insurance coverage are acting foolishly. One lawsuit could wipe out financial assets and force landlords to sell investment properties to pay judgments or legal fees.

One trusted source for scouting out buy to let home insurance providers is the Landlord Association website at In addition to locating insurance resources, landlords can download legal forms, research landlord and tenant laws, purchase real estate property management software, find real estate investment clubs, and learn about Section 8 rental properties and buying foreclosures homes as investment property.

Landlord rental property insurance is an affordable option that offers protection against many factors. Don't place real estate investments at risk. Purchase sufficient buy to let home insurance and rest knowing property and tenants are protected.

While you are here, take a moment to browse our landlord article library where we share information and resources for getting the most out of real estate investments. Topics range from proper insurance coverage to entering into lease-to-own agreements. New articles are added weekly and visitors are encouraged to subscribe to our mailing lists to receive updates and notifications.

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Published on June 05, 2010 at 03:59 AM

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