Finding the right insurance for your own property that you rent out is very important. As a property owner, you should be aware of the type of property, tenant who rents your property and value of your property. Without knowing anything about your property, you can't simply start looking for insurance.

Landlord building insurance

The buy to let insurance you buy must cover the building. The whole property must be protected against risks and threats that may cause damage to the building. The extent of cover provided by a specific policy is dependent on your insurance provider. You must determine the amount of cover after estimating the total cost required for complete rebuild. This amount affects the monthly premiums you have to pay.

Landlord contents insurance

Furniture and fixings you have in your property must be insured. Things like carpet, chairs, sofas and other decorative items that you rent out must also be insured because tenants insurance will cover only those things owned by your tenant. Any damage to the furniture will cost you and your insurance should cover it.

Landlord liability insurance

Personal injury claims made by tenants and domestic workers must be paid by your insurance company. Different companies offer different limits for liability covers. When you choose too little liability insurance, you have to pay a greater amount out of the pocket when the person injured in your premises makes claims.

Accidental damage cover

Unexpected or unusual accidents may cause damage to your building and this must be covered by your buy to let insurance. Any harm caused to your property will be paid by your insurer. Normally, landlord insurance will provide this cover as a part of standard package. If you are renting out commercial properties, some companies require you to pay an additional cost for this cover.

Alternative accommodation cover

Any threat that makes your property uninhabitable will result in loss of rent and your insurance policy should cover this loss. Repair cost along with loss of rent must be paid by the company. Many companies provide a maximum of 20% of rebuild cost of property as repair cover. You should also consider the cost of moving your tenants back while calculating required alternative accommodation cover.

Loss of rent cover

Legal costs for dealing with tenants who don't pay rents properly is high and with loss of rent the total cost may increase. With appropriate cover for loss of rent, your rental income is guaranteed even though the property is vacant during repair, construction or other circumstances.