| Buildings Insurance Landlord | ||||
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Information
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Although home insurance is not legally required, you will have to take out buildings cover if your buy-to-let property is mortgaged and, in any case, it would be very risky not to. This covers the structure of the building and any items that would normally be left behind when people move out, such as garden walls, terraces and fixtures and fittings, against damage caused by perils such as fire, extreme weather and burst pipes. The rebuild cost – not the market value of the property – is used as the sum insured. This is the cost of rebuilding the property if it is totally destroyed. This amount is included on your original valuation report and could be greater or less than the market value, depending on the age of the property. Some insurers, however, will offer cover for an unlimited sum, which means there is no need to use the rebuild cost. |
Potential pitfalls with regular buildings insurance with regard to buy-to-let properties are that the property may not be covered if it is empty for more than 30 days – a problem during any lengthy void periods – and that cover for your liability as owner for any injuries taking place at the property may not be sufficient. It is also unlikely that you will be covered should people employed by you be injured there. | ||