Insurance for let properties is not the same as your typical buildings and contents owner-occupier cover. This is because insurers perceive buy to let UK properties as being more at ‘risk’ than homes that are occupied by the people who own them. Whether this is because tenants may not be always as proactive in maintaining the properties they rent or because a high turnover of inhabitants causes more wear and tear, buy to let insurance is typically a little bit more expensive.

If you have rented out your own home, it is essential to inform your insurer about that change. Otherwise, you may find that the insurer may not pay out if you have to make a claim and you may also jeopardise your chances of getting insurance in the future.

So what kinds of things will a buy to let policy typically cover?

The “structural” risks

Each insurer has a slightly different list of risks that they cover, but some may include the following:

• fire;
• flood;
• storm;
• theft;
• damage from objects falling from aircraft;
• contents cover (if applicable).

Depending on the location of your buy to let property, flood risk cover could be limited.

The “financial” risks

Financial risks are less obvious, but can still pose a significant threat to your property as an investment and include loss of rent arising from an insured peril. If the property is seriously damaged due to a covered risk so that your tenant has to move out, you will not be paid any rent until they can occupy the property again, or until you can re-let if appropriate.

Some landlords insurance policies will cover this risk.

You also may need to consider public liability insurance which may help towards costs if a claim is made against you for loss, damage or injury sustained while on your premises.

The premium

No doubt the cost of the buy to let cover is an important factor in taking out insurance for let properties. However, there might be reductions available from the figure first quoted.

For instance, if you are renewing a policy and have not made a claim for some years, ask whether a discount is available to reward your good estate management. You could also look at the excess on the policy as insurance for let properties could be cheaper if you opt for a higher excess.