Many companies today offer Buy to let insurance. It’s a flourishing and competitive market that has grown hugely in the last ten years.
There is lots of choice on offer for landlords as they look for insurance but it’s not always easy to find a competitive product. So what do you do if you want to keep your premiums low but still have the best level of cover?
Firstly consider what kind of Landlords insurance you actually need. There are many different types available offering particular levels of cover and packages of services. You need to select the bundle that suits your needs and budget.
It’s essential to have buildings cover, otherwise you’d be faced with a large bill if the house burnt down so that’s non-negotiable. But what extra do you need? Contents cover is something you may or may not want, depending on whether you plan to rent the house out furnished or unfurnished. If the property is furnished then it’s probably wise to take out contents protection. If not, you may be safe without it.
Some providers offer cover against loss of rent. While it will add something to your monthly bill it’s worth considering. This type of policy will cover you when the house is vacant so you will still get an income. If you need a guaranteed monthly income from the house then this might be the policy you need. You should also ensure that the rent covers your outgoings.
Make sure your house is in a good rental area, student areas are a good place to begin as there is invariably a demand. Be careful though, as this demand can be seasonal and you could be left with an empty house, and no income, for 4 months of the year.
Speak to local agents to check the usual rental value of properties in the area. Compare similar houses if possible and question if the rent covers all your expenses. Does it also leave a profit?
Talk to a local insurance broker about getting the right Buy to let insurance. Normal house insurance policies aren’t valid if you are renting the house out. It might cost a little more but it’s essential to get the right cover.
There is a huge risk in being a landlord that not many people entirely understand. Imagine your tenant has a fire in your house. It will need to be repaired. While it is being repaired nobody can live there. As a landlord you have a legal responsibility to provide accommodation for your tenant. So if your house is unlivable for several months while it’s being repaired you must carry the costs for your tenant’s new accommodation. That could be a hefty amount of money. If this concerns you, you need to consider alternative accommodation insurance.
There are many options for buy to let insurance. If you look closely you’ll find the right combination.

Doug Walker Dip CII is General Manager of Academy Insurance Services Ltd. Academy is an independent insurance broker specialising in niche insurance markets such as cheap young driver insurance and buy to let insurance.