Many questions may arise when considering the differences between home insurance and buy to let home insurance. Buy to let home insurance is necessary when insuring a property one intends to let. Home insurance and buy to let home insurance are quite different, so here are some of the differences between them.
One key element of buy to let home insurance related to the cover for an unoccupied property. The limitations on unoccupied property on a standard home insurance policy extend to 30 days. This means that if the home remains empty for more than 30 days, the insurance company may refuse to pay out in the event of a claim. However, most buy to let home insurance policies allow for up to 90 days without occupancy. This is particularly useful for those letting their property to students, where there may be no occupancy for several months in the summer.
Additionally, when purchasing buy to let home insurance, it is important to inform the mortgage lender, insurance company, and the lessee about the terms of the buy to let home insurance policy. Then, all parties who will be involved will understand the policy in the event of a buy to let home insurance claim. Failure to notify parties can result in denial of insurance claims.
When filling out the application for buy to let insurance, an important question to pay attention to regards the cost of re-building the property. It is important on your buy to let home insurance policy application to enter the cost of an actual re-build, not the market value of the home. Making the mistake of entering the market value could have a considerable affect on the premium for your buy to let home insurance policy.
Also, it is important to make sure that the insurance company for your buy to let home insurance policy will provide cover despite tenants. Some buy to let home insurance policies will not issue cover for properties who serve ?high-risk tenants.? High-risk tenants usually include students, multiple single sharers, and tenants who receive State Benefits.
Many buy to let home insurance companies offer home emergency cover options providing cover for emergency home repairs, 24-hours a day. This may be something you want to consider, particularly if you do not live near the leased property. It is important to note, however, this type of cover does not provide for general maintenance. One may also look into contents insurance as an add-on to protect fixtures and fittings within the building. Not all buy to let home insurance policies cover damage to interior, even in the event of flood, fire, or storm.
When shopping around for your buy to let home insurance policy, it is important to understand the differences between that and standard home insurance policies. To get a quote today, fill out our short home insurance form, and we will connect you with an experienced home insurance adviser who will be able to provide you with a quote based on your personal circumstances.