Buy to Let Insurance
New or inexperienced buy to let landlords often neglect to take out the proper insurance.
In this article I will explain some of the very important reasons why as a landlord it is essential to take out the correct insurance.
Many landlords forget that when they rent out a property they are still responsible to obtain buildings insurance on the property.
In most cases (depending on your contract/lease) your tenant will be responsible to protect their possessions and the interior of the property with contents insurance and you will still be responsible for insuring the actual building.
One common form of insurance offered to landlords is to cover you in case your tenants fail to pay their rent.
You should carefully consider if you can afford to go for 3 to 4 months without any rental income should the worst happen.
Will you be able to pay the mortgage if there is no rental income coming in on the property? If you tenants stop paying their rent it can be a long and complicated process you need to go through in order to get them evicted.
Not only this but once they are gone it can take a few weeks or more to find new tenants and get them moved in.
As a result you may have to go a substantial amount of time without any rental income.
Only you can decide if it is worth you taking the risk of not getting rental insurance, however you should think long and hard about it and do the sums to see if you can cope with going say 6 months without any rent.
In this article I will explain some of the very important reasons why as a landlord it is essential to take out the correct insurance.
Many landlords forget that when they rent out a property they are still responsible to obtain buildings insurance on the property.
In most cases (depending on your contract/lease) your tenant will be responsible to protect their possessions and the interior of the property with contents insurance and you will still be responsible for insuring the actual building.
One common form of insurance offered to landlords is to cover you in case your tenants fail to pay their rent.
You should carefully consider if you can afford to go for 3 to 4 months without any rental income should the worst happen.
Will you be able to pay the mortgage if there is no rental income coming in on the property? If you tenants stop paying their rent it can be a long and complicated process you need to go through in order to get them evicted.
Not only this but once they are gone it can take a few weeks or more to find new tenants and get them moved in.
As a result you may have to go a substantial amount of time without any rental income.
Only you can decide if it is worth you taking the risk of not getting rental insurance, however you should think long and hard about it and do the sums to see if you can cope with going say 6 months without any rent.