Investing in property
When buying an investment property you will need to protect your investment with insurance and may want to consider the following:
Buildings Insurance – you should insure your property against eventualities such as fire, flood, impact, explosion, malicious damage, subsidence, etc.
If you have a mortgage on the property your lender will insist that you insure the building, you should also note their name on the policy. Do not feel pressurised to insure your building with your mortgage provider, you can use any quality insurer.
Remember, the value you insure your property for is the rebuild cost not the market price, this value can be found in your buildings survey.
If you are buying a property your solicitor will normally advise you that you need buildings cover from exchange of contracts, this could be weeks before completion so be prepared. Do not forget to also insure outbuildings, perimeter walls, garages, etc.
Contents Insurance – if your property is fully or partly furnished you may want to insure against damage or loss to contents. Bear in mind that carpets and curtains are considered contents.
Vacant or Unoccupied Properties – if there will be a period of unoccupancy, even for just a portion of the property, it is important that you have the correct insurance as most property policies have significant exclusions and limitations if your home is unoccupied. You will need to negotiate with your insurer or take specialist cover.
Refurbishments or Extensions – Your insurance company will need to know if you are making changes to your building, if you don’t tell them then your cover could be jeopardised. Extensions or major refurbishments may require Contract Works insurance, which will cover the works in progress, building materials, plant, site huts, etc.
Rental Income – it is possible to insure rental income should you be unable to rent your property following a claim. Consider how long it would take to totally rebuild your property should it suffer a severe claim, this is the period you need to insurer rent for.
Responsibilities As A Landlord – You will need property owners liability insurance to protect you should you be found liable for injury or damage to a third party. You also have legal responsibilities for the safety of tenants which you need to be aware of such as inspections of gas appliances, electrical systems and lifts.
Act now! Call us on 01905 21681 to get your insurance needs met