Landlord help required - Insurance

ambercelery

Hi
I have recently purchased a buy to let flat.
I am starting to get everything arranged such as tenancy agreements etc.
Does anyone that currently has any buy to let property have any good advice or links to good websites?

Also - What are your thoughts/experience on insurance?
Do you simply have a buildings insurance policy (assuming your property is rented out unfurnished) or do you have a more expensive landlord policy which covers for tenants not paying the rent on time etc - or the property being without tenants for a number of months?
Is this type of cover usually worth the extra monthly cost?

Lastly, has anyone had any experience with bad tenants and required to use their insurance for legal expenses?

Many thanks for your time.

Fit_Like

Hiya

If this is your first experience of being a Landlord, I would recommend the use of an agent, who will guide you through the whole process.

Contact your local estate agents who can advise on the service that they will provide and at what cost, normally a % of the rental achieved. Although you will have to pay for this IMO it is invaluable and will provide you with everything you need to diy the next time round.

IMO Insurances, as a landlord you need to insure any items you have in the property and the tenent will insure any items they bring to the property. If you have a watertight lease, there should not be a requirement to insure for loss of rental as the lease itself should stand up in court if so required provided that you have also adhered to it ie reapirs etc.

hth

MarkyMarkD

I wouldn't agree with what Fit_like said - sorry!

If you use an agent, they'll charge you a nice percentage of the rent. If they organise the insurance, it'll probably be with their mates in exchange for a kick-back.

Our rental property is insured with Norwich Union through an insurance broker and we organised it ourself. The policy is a specific landlord's policy - you definitely DO NOT want a standard buildings policy as these are NOT suitable for landlords. Our policy costs £1.5625/£1000 of cover - but that would doubtless vary by type of property and location.

Our policy doesn't cover us for tenant's default - and nor do other policies, unless you specify this as an additional cover or purchase it separately. Nor do agency agreements, unless you pay a higher rate of commission in the first place. If you want to rely on Fit_Like's assertion that you can pursue the tenant (who would doubtless disappear without forwarding address) in court for any shortfall in rent, that's up to you - but I wouldn't want to do so!

If you would like the details of my insurance broker please pm me and I'll let you have it via return pm.

Natelle_2

My first suggestion would be that a very good reference source is "The Which guide to Renting And Letting".

You will require a specific landlords policy, your local insurance broker should be able to help you with this. A policy which includes rent guarantee, at an addditional cost, is usually only offered if you use a tenant verification service rather than doing the necesary credit and personal checks yourself.

You don't need to use a managing agent if you feel confident in your own ability.