It Makes Sense To Ensure Adequate Protection Is In Place
Landlords in Colchester with Buy To Let mortgages will already have adequate buildings insurance in place. Even those who own outright usually insure their property for its rebuild cost, with cover in place for damage caused by floods, fire, and storms. However, there are other risks involved in renting out a property. As well as your buildings insurance, it makes sense to put suitable protection in place, so you’ll be financially covered if something goes wrong.
Here at Home Sales & Lettings, sadly we have seen landlords take a significant financial hit when something unexpected has happened to their property. To avoid this happening to you, you should consider taking out insurance to cover the following:
1. Property Contents
If you’re letting a property fully furnished, good home contents cover is essential. However, even if you’re renting your property out unfurnished, you will almost certainly have flooring and white goods to consider.
2. Damage Caused By A Tenant
Whether deliberately or accidentally, if your tenant causes damage to your property and you can prove it, it’s usually possible to retain their deposit to pay for the repairs. But what happens if the final cost to repair the damage is higher than the deposit amount? Consider inserting a clause into the tenancy agreement making it mandatory for the tenant to take out insurance that protects the landlord’s property against accidental damage. Most reputable agents will be able to facilitate this.
3. Public Liability Cover
If any tenant, visitor, or contractor is injured in the property and thinks it was your fault, they could take you to court for compensation. Public liability insurance covers both any compensation that is awarded plus your total legal costs.
4. Costs For Alternative Accommodation
Should the rental property be so severely damaged that the tenants need to be relocated while repairs are completed, you could incur additional costs to provide alternative accommodation. The right insurance policy will cover this potential liability.
5. Legal Expenses And Rent Protection
The number of landlords taking out rent protection and legal cover insurance has increased greatly since the outset of Covid and all the uncertainty brought about by the pandemic. We now recommend this to all of our clients when introducing new tenants. Cover is not expensive and it provides complete peace of mind. The right policy will ensure the rent is paid regardless of the reason for non payment by the tenant. It will also pay for the legal costs in the event that you need to repossess the property. We highly recommend these policies. (Note – there is usually an upper limit to the legal cover of £100K – but policies can vary).
With adequate insurance, you can enjoy peace of mind knowing your income is safe and you won’t get any unpleasant financial shocks.
If you need a professional team to help manage a rental property in Colchester, please get in touch for an initial friendly chat. As property management experts in Colchester, we’re on hand to make your life as a landlord easier and more profitable!
Call us today on 01206 862288 or visit our website at https://hometorent.co.uk to learn how we can help you.