Buy to let home insurance is often referred to as landlord insurance.
This type of policy is purchased in addition to homeowner's insurance.
Buy to let policies do not provide coverage to tenants or their personal property.
Instead, they offer special coverage for expenses not covered under homeowner policies.
Buy to let home insurance offers landlords' personal liability coverage, protects investment cash flow, and provides additional protection when using homes as rental properties.
Landlords can select from various types of policies which offer coverage for property damage, legal fees, court costs, and up to one year of lost rental revenue.
One of the biggest challenges landlords face is rent collection.
When tenants default on rent payments or inflict property damage, landlords must adhere to their states' landlord tenant laws.
In most states, landlords must submit specific documents to tenants and give them the opportunity to cure rent arrearages.
If tenants fail to pay rent or cause damage to the home, landlords must absorb the cost of legal fees until restitution is awarded by a judge.
Even then, property owners may never recover the full amount.
When real estate investors buy houses to be used as rental properties they would be smart to include legal expenses as part of their buy to let home insurance policy.
Otherwise, they will be responsible for collection expenses out of their own pocket.
Buy to let policies can also include provisions for property damage inflicted by tenants.
When damage is extensive enough to make the house inhabitable, landlord insurance can provide funds to renovate the property.
Property owners can also be compensated for lost income during the rehabilitation phase.
However, landlords must request property damage to be included in their buy to let home insurance policy.
Providers of buy to let insurance allow property owners to select the type of coverage they desire.
Some policies only cover property damage, while others include provisions for lost rental income.
Other landlord insurance policies provide full replacement cost, while others deduct depreciation from the original value of the item being replaced.
Before allowing tenants to rent living quarters it is crucial to have sufficient landlord insurance in place.
Property owners should take time to comparison shop buy to let home insurance to determine which company offers the best protection and pricing.
Real estate is a valuable asset and landlords must invest in adequate protection to cover problems that arise.
At minimum, property owners should obtain liability insurance.
If tenants or their guest are injured due to landlord negligence, tenants can file a lawsuit to recover lost wages and medical expenses.
Property owners can be held personally responsible for injury-related expenses if they do not have adequate liability insurance.
Including liability insurance will increase premiums, but these costs are minuscule compared to the cost of tenant lawsuits.
Buy to let home insurance should also offer adequate coverage for repair costs of rental properties damaged by fire or flooding.
Property owners should consider purchasing additional coverage for property vandalism or property deterioration.
Buy to let policies can also include coverage to cover replacement costs of appliances and personal property used by tenants.
This is a good choice for landlords offering vacation homes and furnished rentals.
Property owners who fail to purchase adequate buy to let home insurance are setting their self up for financial disaster.
Many insurance providers offer landlord policies at affordable prices.
Premium amounts can be added to rental rates so landlords do not incur out-of-pocket expenses.
Don't place real estate investments at risk.
Invest in buy to let insurance so you can rest knowing investment properties are properly insured.