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28/08/2020


What is Buy-to-Let Insurance? and other questions

What is Buy-to-Let Insurance? How much does it cost? What does it cover? Do I need it?

These are just some of the questions you may have when it comes to letting out a residential property. To help you find the information you need, our team has put their heads together to answer your frequently asked questions.

What is Buy-to-Let insurance?

Buy-to-Let Insurance is commonly known as Landlord Insurance or BTL Insurance. It’s a policy designed to protect landlords and their investment properties.

Who is BTL Insurance for?

BTL Insurance is designed for residential landlords, either with a single investment property or a multi-property portfolio.

Do I need Buy-to-Let Insurance?

Although it’s not a legal requirement, you’re likely to need BTL Insurance if you have a mortgage on your rental property. Banks need to know their investment is protected if your property is damaged or destroyed. As such, they will insist that you have Landlord Buildings Insurance as a minimum.

Even if you don’t have a mortgage, Landlord Insurance provides vital peace of mind. You know your investment – and your finances – are protected if the worst happens.

Can I buy Home Insurance instead? What’s the difference?

Unfortunately not. If you rent out a residential property, Home Insurance doesn’t provide suitable protection for the risks you face.

Buy-to-Let Insurance provides cover for additional risks. For instance, it includes Property Owners Liability cover (see below), which isn’t included with Home Insurance.

What’s the difference between Buy-to-Let Insurance and Landlord Insurance?

There isn’t one! The two policies are essentially the same.

How much is Buy-to-Let Insurance?

Landlord Buy-to-Let Insurance, like many other insurance products, is dependent on a number of different factors, including your own claims history, the condition of the property and whether you buy any additional protection.

Request a quote to get an accurate price for your property.

Can I get insurance for an empty buy-to-let property?

Most residential landlord insurance will cover an empty property for up to 90 days between tenants. If the property is empty for longer than this, you will need to arrange specialist cover, because the risks faced by an unoccupied property differ from those of a tenanted property.

Remember to let your broker know if your property is going to be unoccupied for a prolonged period. They can advise on the appropriate course of action.

What does Buy-to-Let Insurance cover?

It covers a range of areas, protecting you and your property. Covers include:

    • Property Owners’ Liability: Protects you if your tenants, their guests or a member of the public is injured, develops an illness or suffers property damage and they sue you.
    • Employers’ Liability Insurance: If you have employees or contractors working at your rental property, this protects you if they are injured or get ill as a result of visiting your property.
    • Landlord Buildings Insurance: This protects the fabric of your property (walls, floors, ceilings etc.) in the event of damage or destruction, up to the rebuild value.
    • Landlord Contents Insurance: This covers your items within the property (such as light fittings or white goods). Tenants can protect their own items with a separate Tenants Contents Insurance
    • Loss of Rent Insurance: This covers the value of your rental income if your property becomes uninhabitable following an insured event, such as a flood or fire.

Landlord Legal Expenses & Rent Protection: What is it?

These are designed to protect you in the event of a tenant breaching the tenancy agreement:

Landlord Legal Expenses: This covers any legal costs you may suffer as a result of running your rental business, for instance, evicting your tenant due to unpaid rent.

Rent Guarantee Insurance: This is an extension that can be added to Landlord Legal Expenses. This policy covers your rental income if you have to start legal proceedings due to a tenant not paying the rent and you apply for permission to evict.

Does Buy-to-Let Insurance cover non-malicious damage?

Yes, accidental damage to your buildings and contents is typically covered. Some policies will also include malicious damage and theft by the tenant cover.

How do I get a quote for Buy-to-Let insurance?

You can go directly to an insurer or use a price comparison website, but we’d advocate using an independent insurance broker (obviously!).

An insurance broker will speak to you about your unique circumstances before finding the best landlord insurance for your individual needs.

Because you’re working with a real person, they can answer any questions you may have about your policy and provide advice about managing your risks. Get a Landlord Insurance quote here.

How do I make a claim on my BTL Insurance?

If you’re working with One Broker, we should be your first port of call. We have our own Claims team, who will ask for more information about your claim and help you manage the process.

They will work with you and your insurer to bring your claim to a satisfactory conclusion.

Get a quote for Buy-to-Let Insurance Today!

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