Buy To Let Property Insurance

Buy-to-let property insurance, some times also known as residential property owners insurance, is needed if you own houses and/or flats to tenants – either on a short-term or long-term basis.  Ordinarily you can buy cheap buy-to-let property insurance in the event that you rent five or less properties in the UK than is the case if you rent more than five properties, as in the case of the former you are seen as a small time landlord with a small business, whereas in the latter you are seen as a full blown property-owning company.

Whether you plan to rent five or less properties, or five or more properties, is, however, a side issue, as in both cases you’ll need to ensure that you have at least the minimum level of required insurance in order to protect yourself.  Consequently, the number of properties you own will have a bearing only insofar as the insurance premiums are concerned.  That said, if you are looking to become a property owner with a letting business, then you need to ensure that you have the following minimum provisions in your insurance policy:

Fire

Insuring against any fire on the property

Natural Disaster (also known as tempest insurance)

Insuring against natural disasters that may occur, such as a storm where the winds tear off your roof or guttering

Theft

Which is especially important if you are renting out fully furnished properties.  In the event that you are renting out unfurnished premises, you may wish to have a discussion with your tenants about whether or not they should have home contents insurance

Public Liability Insurance

This should be a must as it will protect you against any claims your tenants or any third parties (such as their guests) may have for injuries they suffer while on your property

Lost Earnings

There may well be times when your property remains empty; say, for example, while you look for new tenants.  If you are relying on the rental income from your tenants to repay the money you borrowed to purchase the property, you need to ensure you have lost earnings insurance to compensate you during this period

Employee Liability Insurance

If you have employees who will visit the property for you to repair any damage, etc. or to collect the rental payments, then you need to make sure that you have employee liability insurance in case they get injured while carrying out their assigned task

Legal Expenses Insurance

As a property owner you may find the need from time to time to retain the services of a lawyer; for example, if your tenants refuse to pay their rent or move out of the property at a specified agreed time – when you may need to get an eviction notice.  As legal expenses in the UK can be expensive, you should consider insuring against this risk by having in place a provision of legal expenses in your insurance policy.

Although the above are basically the bare minimums you need in your buy-to-let property insurance policy, you can also tailor these types of insurance policies to meet your particular needs, so make sure that you talk through your circumstances with your insurance provider, especially if you anticipate expanding the business in the near future.

Auto Insurance 101 Explained

Auto insurance can be confusing for most consumers; there are so many different types of insurance and it can be difficult to determine the type of coverage you’re required to carry versus the types of coverage that you really should carry in order to protect yourself but that are not required.

When considering how much car insurance you should have, it is best to do some research and find out what type of insurance is required by the state in which you reside. Not all states require the same levels of insurance. Some states require more types of coverage than others and states also vary in terms of the amount of coverage that is required. So, be sure you know exactly what the minimums are in the state where you live.

You should also understand what is covered by the different types of insurance in order to understand whether you need insurance coverage above and beyond the minimum required by your state of residence.

Bodily injury liability covers injuries that you cause to someone else while driving your vehicle. Generally the rule of thumb for this type of coverage is to purchase more than is required by your state minimums in order to protect your private assets from a law suit in the event that you injure someone.

Medical payments or personal injury protection, commonly known as PIP covers the treatment of injuries for the driver and the passengers of the vehicle. Depending on the level of coverage, this type of policy will compensate lost wages as well as medical payments.

Collision covers any damage that occurs to your vehicle in the event of an accident, even if it is your fault. Of course, a deductible will apply. Your lender will generally require this type of coverage while you still owe on the vehicle.

Comprehensive coverage is for the loss of your vehicle due to damage by something other than a collision such as theft, fire, natural disaster, vandalism, etc. Again, your lender will probably require this coverage for a financed vehicle. Once your loan is paid off, it’s up to you whether you want to continue carrying comprehensive and collision coverage.

Uninsured and underinsured motorist coverage can come in handy in the event that you are either involved in a hit and run or if you are hit by someone who does not have insurance or who is underinsured.

When considering how much insurance to take out, start with the amount that is required at a minimum by your state and then consider whether you’re required to take out any additional coverage due to lender requirements. Remember that while we all hope we won’t have a need for insurance, in the event that we do, it can be a financial lifesaver.

Finally, don’t forget to consider your options regarding deductibles. Raising your deductible can help you lower your premiums and that can make taking out additional insurance coverage more affordable. Just be sure you can reasonably afford the deductible in the event you need to use it.