Insuring a rental property

December 2, 2010

Tags: Property

If you are a home owner and are looking to rent out your property you will need a different type of insurance to protect your property. Insurance companies will require you to purchase a different type of insurance then that if you were living in the property yourself as you cannot guarantee the safety of the property. If you are still paying a mortgage on the property or have a buy to let mortgage, the mortgage lender will require you to have insurance. This will be written In to your contract, without this in place your mortgage could be void. This is protect the lenders investment an also your own. If the property happens to be empty at any point, rental property insurance would also cover this period. An empty property can be a big attraction to burglars’ and squatters.
Buying a rental property can be a sound investment but if you do not protect the property it can cost you a lot more then it needs to. If you are privately renting your home and have not involved letting agents you could be on call 24/7. Using a letting agent can take away a lot of hassle and they can organise any works which need to be carried. With the work of the letting agent and the rental property insurance you should find yourself with a lot less hassle. Rental property insurance should be te first thing you do when letting out a property as many things can go wrong. You may find that tenants can be carless a lot more then if it was their own home. You should always take a security deposit which will insure that they will treat the place with respect. This deposit can be kept if anything gets damaged and an insurance claim needs to be made, the security deposit would then pay for the excess on the insurance claim

Rental property insurance will cove the interior of the home but you should always have building insurance also. If you are renting the property unfurnished it will be up to the tenant to protect their own property. You may wish to find an insurance company who can protect you for both. This can save time getting quotes elsewhere. Getting a quote for rental insurance in Florida can be a lot cheaper if you are getting cover for both interior and building insurance as you receive a bigger discount.

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