According to recent media reports, the top rates in the residential mortgage market are beginning to disappear. This is a sure-fire sign of a cooling market, as house prices become unaffordable for the majority of potential buyers.
Despite this, there has never been a netter time to become a residential landlord and invest in the buy-to-let market. Buy-to-let borrowers are continuing to benefit from record number of products and diminishing rates, enabling them to expand their operations and maximise profits over time.
Becoming a Landlord: How to Obtain the Best Possible Insurance
If you are to become a landlord, however, it is important to note that success is not necessarily instantaneous or easy to achieve. It is crucial that you invest in adequate insurance coverage, for example, as this will help to protect your investment and save money over time. Consider the following steps towards achieving this: –
- Distinguish Between Building and Contents Insurance
When you insure a property as a regular home-owner, you are responsible for protecting both the structure and the contents. This is not the same for buy-to-let owners, however, who are only responsible for the structure of the property and concepts such as wiring, electrics and heating appliances. So long as your insure the building and any integrated appliances that you provide to tenants, you will have upheld your duty as a landlord and protected yourself in the event of malicious or unintentional damage.
- Consider Embellishing Your Insurance Coverage as a Landlord
While you may keen to strike the most affordable deal possible when sourcing insurance as a landlord, it is important to remember that the cheapest policy is not always the most effective. Investing in an inadequate level of insurance is a huge false economy, and one that can ultimately cost you money in the long-term. Instead, you should consider policies that offer the best balance between cost and coverage, while also paying attention to non-standard features such accident liability insurance which protects you if your tenant is injured within the home. To find out more about option insurance extras, visit the Simple Landlord Insurance website today.
- Look to Purchase Personalised Insurance Policies
During the last decade, insurance companies have made an increased effort to create tailored policies that suit the individual needs of their customers. This trend has impacted heavily on the buy-to-let property sector, where landlords can now negotiate directly with service providers in order to create policies that deliver genuine value for money. So try to be patient when comparing the market, and wait for the deal that offers the most suitable level of long-term coverage.