National Society

Houses that have been bought simply to be rented out require particular insurance, known as ‘Buy-to-Let’ or ‘Landlord’ insurance. Usually, this kind of insurance protects the owner from any potential losses to the building and any contents belonging to the owner. Typically, it will not cover any items which belong to the tenant currently renting the building. Cheap building insurance quotes in this field can be complicated to find. 

Landlord insurance covers the building from physical damage in the event of fire, explosions, storms or floods, while optional coverage includes things such as rent guarantee insurance, legal protection and liability insurance. Liability insurance is usually an option purchased by wily rental property owners, as it can help protect them from any lawsuits brought against them by unhappy or injured tenants. Sometimes, contents insurance can be a bonus for both owners and tenants, though usually tenants will have to buy their own contents insurance. Rent Guarantee insurance can work as a cover in the case of the tenant not paying the rent. Usually, the amount paid for rent guarantee is organised before and references must be taken before cover begins.

The prices of buy to let insurance can depend on many things; the location of the property, the tenant type and the cost of rebuilding, these are just some of the rating factors for this kind of insurance.  The insurance policy can usually be tailored to suit the individual landlord. 

Generally, owners of rental properties are interested mostly in buildings insurance. Cheap buildings insurance quotes can be found online through price comparison websites, or through an insurance broker.

Landlords and tenants need to know their rights and have correct insurance policies when renting and letting properties.  A common mistake is to not realise that tenants should cover their own possessions under their own insurance policy, whereas landlords should take out comprehensive landlord insurance that covers building and contents, including fixtures and fittings.  Landlord insurance should also not be sold by a letting agent unless they are authorised to do so by the FSA (Financial Services Authority).  An unregulated policy may be invalid, meaning landlords leave themselves financially vulnerable in the event of theft, fire or other emergency. 

Buildings should always be covered by landlord insurance policies.  This would include cover for damage from possible events such as fire and smoke, burst pipes and oil/fuel leakage, storm and flood and malicious damage to property, as well as theft and subsidence.  A good policy for landlords to adopt is one that includes the sub-clause of malicious damage to property by tenants, although not all insurers cover this.  Loss of rent can usually be covered to some extent but not for prolonged periods of time; 20 per cent is a usual figure. 

Landlords are advised to obtain contents and liability cover for their properties; this would protect against a claim for a faulty item such as gas cooker, for example.  If as a landlord you have a fully furnished property, or one with items worth more than £5,000, it is crucial to have full contents insurance.  Tenants must be made aware to get contents cover as a separate policy for themselves; otherwise they will be liable for any damage they have caused to the property.

House insurance is also known as hazard insurance or homeowner’s insurance.  This is a type of property insurance which covers private homes.  This type of policy covers a whole range of insurance protection, including loss or damage to the property itself, loss of use or loss of any personal possessions belonging to the homeowner.  These policies will also cover any accidents that happen within the home or within the policy boundaries.  House insurance policies will usually require that at least one named insured person on the policy lives in the property that is being insured.

Cheap buildings insurance costs are variable depending on a number of factors.  The cost of the policy is calculated mainly on the costs associated with replacing the building in terms, but this may also be affected by additional items that are specific to that building.  Policies are usually long-term contracts, and tend to be very specific in terms of what is and what is not covered within the policy for various events.  Typically, floods and claims due to wars (including nuclear explosions) are excluded; however in the case of floods, special types of insurance can be purchased for these eventualities.  These additional policies will be adjusted to reflect the additional replacement costs associated with flood damage.  It is notable that in the UK, rebuilding costs are often lower than the market value of the property.

House insurance policies are term contracts that are effective for a fixed period of time.  Premiums are paid to insure each term, and these can be affected depending on a number of situations i.e. the property’s proximity to a fire station, or whether the property is equipped with a fire alarms or sprinkler, if there are approved locks on the doors or windows, or in some cases, wind mitigation measures.  Recently, the UK has seen a rise in house insurance premiums due to fraud and unpredictable weather.  This has had the indirect result of competitiveness amongst insurance companies in the market, with price comparison sites becoming more popular as consumers become more sensitive to the price of premiums.

Our homes are amongst our biggest assets.  The shelter provides us with safety for our families and most treasured possessions.  Yet accidents can happen, risking not only large sums of money but also our futures.  Given what is at stake, buildings insurance offers protection from floods, fires, and other damage to your property that can pose a serious risk to your livelihood.

Buildings insurance with accidental cover commonly means insurance for damage to the structural integrity of the house and the materials used to make it.  This type of insurance normally covers damage to the windows, decoration, any cables and pipes on your property, as well as outdoor fixtures such as gates and fences.  Premiums are usually based on the cost to build your house from scratch, and take into account weather damage, subsidence, and acts of vandalism. 

Some insurers offer extra cover to insure separate buildings on your property, for instance garages or greenhouses, and may also cover the permanent fittings within your home such as stairs, baths and kitchens.  It is always worth being absolutely clear on your cover as there are a number of ways to invalidate your insurance.  The most common one is damage caused by building work.  If in doubt, it is always best to notify insurance companies and pay any extra premiums if requested.

Insurance of your property is an absolute necessity for any homeowner.  As so much of our money is tied up in our homes, it effectively gives protection against serious financial difficulties or even ruin.

In order to secure a mortgage, it will be necessary to obtain buildings insurance.  All mortgage lenders will insist on buildings insurance as part of a mortgage agreement.  However, if the building concerned is not financed by a mortgage, then buildings insurance is not compulsory, and is purchased at the owner’s discretion.

When securing buildings insurance do not assume you have to use the insurance product suggested by the mortgage lender.  You are not obliged to use the services of the insurer recommended by your mortgage provider.  Shop around and compare prices of like-for-like policies to guarantee the most competitive price.

Buildings insurance is there to cover your property against flooding, storm damage, fire, lightning, theft, vandalism, riots, subsidence, moving objects (such as a lorry hitting the house) and leaking oil or water from a tank or pipe.  It is primarily concerned with the structure and fabric of a building.

When applying for buildings insurance you may be requested to provide an estimate for the cost of re-building your home.  The figure for re-building your home is not the same as the market value, the figure you would re-sell it at.  Take into consideration demolition fees (if necessary), site clearance and builders’ and architects’ fees and materials.  If this sounds like a daunting prospect, helpful online calculating tools can be found on the Association of British Insurers’ website.

Simply put, you cannot afford to be charitable when it comes to securing the longevity of your investment. Buy-to-let property in the UK has seen a steady rise in the last few years and it is for this reason that the acquisition of landlord insurance has become essential.

There are many disasters that can befall a landlord and the ones that are most disastrous are those that have a direct impact on financial resources. It is not easy to know what you need to cater for when you have tenants residing in your property.

The security of rent should not lull you into a false sense of security and thus make you lose focus on what is essential in maintaining the financial income from your property. Do not expect to be able to fully relax when your property is in the hands of others. Being responsible is being able to have the foresight and the acceptance that things can easily go wrong in an instance.

When it comes to getting rent, tenants often try their best to ensure that it is paid up on time.  When this happens your investment is able to live up to its promise of providing you the financial security of income that you envisioned. However, in instances where they are unable to fulfil this part of the agreement having the right landlord insurance proves beneficial. Depending on the type of policy you have, you may be able to claim some of the rent back from your insurer.

Whether you are shopping around and comparing home insurance quotes as a new homeowner, or looking for a way to lower your current house insurance premiums, there are steps you can take to reduce your monthly house insurance payment.

Taking the time to compare home insurance quotes is probably the simplest and quickest way to reduce premiums.  Visit various insurance websites and take advantage of the instant quotes they offer. You might also think about purchasing your car, house, and/or life insurance policies with the same insurer. Very often companies will reduce your premium if you buy more than one policy.

Improving the security of your home and property is an almost definite means to lowering your premium. Installing a burglar alarm, sprinkler system, or new locks on windows and doors are all measures that can reduce premiums. Another idea is to establish a neighbourhood watch group in your area.

Raising your deductible is another option if you are seeking to minimise that monthly cost; the higher your deductible, the lower your premium. Increasing your deductible twice over, may save you as much as 25 per cent. If this is an affordable option for you, it is an easy way to cut monthly costs.

One last alternative is checking the value for which you have insured your house. Buildings insurance covers only how much it would cost to rebuild your house from scratch, so do not include the value of the land on which your house is situated.

Your monthly premium is certainly not a fixed rate. With some smart choices, you can reduce it and save money.

Over five million people in the UK live in properties at risk of flooding from the sea or rivers.  In the floods of 2007, around 55,000 homes and businesses were flooded leading to nearly £3 billion in insured losses.  Many insurance companies will offer flood insurance as a standard part of your buildings insurance package.  This is one less thing to worry about for most of us, but if you live in an area prone to flooding, it may be a good idea to take out an individual flooding policy on your house insurance. 

If you are unsure about the risk of flooding in your area, you can check the environment agency’s flooding map.  In normal circumstances, if the risk in your area is classed as ‘low’, your house insurance should cover flood damage as a matter of course, though it is certainly worth checking with your insurer.
 
Flooding insurance is widely available across the UK, though the amount of cover you can buy will vary.  This is usually determined by the level of risk posed to your property and is influenced by factors ranging from what your local council is doing to prevent flooding to any removable flood defence products you have bought for your home.  Your insurance company may also ask for an independent risk assessment before settling on your premium.

Whatever your position, it is best to be prepared.  Always be aware of what you are and are not covered for, and doing some research can really pay off when it comes to cheap home insurance premiums.

Given the amount of investment we put into our homes, the importance of safeguarding that investment against damage or loss comes as no surprise.  There are some 620,000 home insurance claims each year, averaging in the hundreds of pounds.  With the cost of repairs often much higher than many can afford, it is no wonder that home insurance is vital for the modern homeowner.

Home insurance normally comes in two separate forms, though they can be bought together in one policy.  Buildings insurance covers the cost of damage to your property’s structure and permanent fixtures both indoor and outdoor.  Premiums are calculated by considering the cost of your home to rebuild (though this is usually lower than the market value).  Buildings insurance normally covers various forms of damage, most commonly; damage from the weather, floods, and fire, damage by malicious intent including vandalism, subsidence, and damage caused by vehicles, trees, or aircraft.

Contents insurance is based on the value of possessions inside the house and ranges from jewellery to televisions.  This is usually calculated by the homeowner and involves a ‘sum insured’ that represents the total value of the house contents. 

Whilst it is possible to buy the two together in combined policies, it common that only buildings insurance is purchased alone as this is the cover required by mortgage lenders.  Different policies vary in cover, as do the needs of each customer, so be sure to shop around to find the best possible deal.

When it comes to landlord insurance there are many different covers. Some include both contents and buildings insurance, whereas some do not.

If you are looking to rent or let a property for the first time, take your time to research existing landlord insurance policies to find the one suitable for you.

From February 2005, letting agents are no longer legally allowed to advise you to buy a certain insurance cover, or sell you a particular cover unless they are authorised to do so by the Financial Services Authority (FSA) or they are directly regulated by a broker who is registered with the FSA.

High-Risk Tenants

It is possible that a mortgage lender or general insurer decides not to grant cover to your property because of the tenants you wish to rent your property to. Be aware that renting your property to students, multiple single sharers and people who receive state benefits will make it harder to find a company to grant you a suitable landlord insurance.

Don’t Forget!

If you fail to inform your insurer that you are letting or renting a property within a certain period of time, your claim could be affected. As the landlord, you are responsible for insuring the exterior part of the building as well as your own contents, fittings and fixtures.