Should I get Landlords buildings/ordinary insurance?

jet77

Hi,

I need to get buildings insurance for a buy-to-let property. I was just going to get standard buildings insurance but when I went onto confused.com it shows up an option for landlords insurance.

Can anyone advise the best sort to go for? Obviously the cheaper the better :money: but I want to make sure that I'm def covered.

Thanks,

J x

Beanz

When I let out my property, one of the stipulations from The Halifax (mortgage lender) was that I took out landlords insurance. Therefore it might be worth you speaking to the mortgage provider.

On top of that, not many "mainstream" insurance companys will insure properties that are to be let...


HTH
Danny

maypole

I let out a property and have buildings insurance with the AA. It does not include accidental damage though, that is extra. I used to go with my mortgage provider but it became more expensive and now fortunately, I do not have a mortgage on it and I let it to relatives.

silvercar

try alanboswell.com for reasonable landlord building insurance.

Beanz

Here are some links FYI:

http://www.endsleigh.co.uk/web/policies/landlord/index.html
http://www.norwichunion.com/landlord-insurance/
http://www.letsure.co.uk/

I seem to recall LetSure (or someone similar) being a broker...

HTH
Danny

jet77

Thank you all for your replies.

Does it make a difference if you just get standard buildings insurance instead of landlords insurance if you are not living at the property?

impy78

You cannot have a standard buildings policy, if the property is not your permanent main residence, so you would need to advise you are letting the property out for the cover to be valid.

clutton_2

if you lie to your insurers, and buy the cheaper residential policy on a BTL property, and have a fire, your insurers will refuse any claim whatsoever. Your insurance is to protect your tenants lives - i do so hope you do not do the cheapskate thing here and ignore your responsibilities.

If you join national landlords association you will save a lot of money on insurance premiums, and you will also learn how to be a proper landlord

scrummy_mummy_2

Hamilton Fraser (HFIS) Insurance services and Alan Boswell both specialise in Landlord insurances.
If your property is mortgaged, it is VERY likely you are in breach of your conditions of mortgage if
A.) You have not told your lender it is rented out.
B.) It is not appropriately insured.

You cannot have a normal residential insurance policy on the property if it is rented out and must have a Landlord's policy which has appropriate public liability insurance. It will normally only be buildings cover that your lender insists you have and they will normally require to
A.) Have a copy of the policy to approve or at least be aware of the provider
B.) Have their interest as lender noted on the policy documents.

If you decide to take out contents cover, this can also be provided/obtained.
My advice on this is don't bother and self insure for any damages as it is more cost effective...this means put the cost of the premium in a separate account for use if you need it, rather than pay the insurers. Don't forget an excess will apply so if you need to claim there needs to be some SERIOUS damage before it is worth claiming, and they will deduct wear and tear and wriggle like a worm on a hook if you try..I have tried!

Cheap is not always the best option...make sure that you prostitute yourself between insurance companies annually to get the best deal as well.
Every year I get a renewal quote from either HFIS or Alan Boswell and then ring the other for a nother quote....generally the one that doesn't have my business that year undercuts the one who does although there was only a fiver in it this year.

In my opinion Letsure are sharks, they charge a fortune and are unreliable, but this was my experience some 8 years ago when I started of in BTL, so things may have changed.

As the other posters have suggested, join the National Landlord's Association too (costs around £70 per year) and will keep you up to date with legislative changes and your responsibilities as well as providing useful contacts and helplines.

Good luck

clutton_2

i saved the cost of joining NLA on my first premium with Alan Boswell

scrummy - diverting just for a moment here, have you any info on the cost to landlords of joining the new Deposit Scheme ?

scrummy_mummy_2

No...rang the NLA the other day to ask and final costs are still awaited!
I do know we will have to pay a fee to be members of the HFIS/NLA scheme annually, but have no idea what this fee will be yet (even though it will be discounted as members of the NLA)
There will also be a fee to lodge any disputed funds with the admistrators if necessary, but again, no indication of the costs of this at the minute.
The helpline also mooted that there was a thought the scheme may actually be delayed as things were getting a bit tight time wise on this issue. But it was only speculation.

On this point, I also asked if there would be any accreditation/membership proof to indicate to tenants that enrolled landlords actually are actively participating in a recognised and backed scheme, like the one run by HFIS and NLA...like a certificate with a registration number.
Oddly, the guy on the helpline said they hadn't thought of that, so I suggested they might want to otherwise landlords could say they were members of a scheme (charge tenants the 'costs' of being in one) and then lie. (Something bad LL's don't have a problem with obviously!)

In my opinion, although the sentiment is good, the schemes 'imposed' by legislation have holes bigger than Swiss cheese in them and will make life more (albeit slightly) complicated for honest LL's but will do little to reign in the LL's operating outside of the law.
Clients (tenants) will have little or no knowledge of such schemes (generally) and it will fall to us to explain.
i intend to pass on the charges for the scheme to my clients as I run my properties myself and try to ensure costs passed on to the clients are minimised...I don't charge inventory fees/renewal fees/admin fees etc.

Hope that helps