With the current demand for rental properties being high and each available home having around 5 tenants competing for each one, the potential investment for landlords has also increased.
Many people are struggling to get together a mortgage and even when they do, there just aren’t any decent properties around. Therefore, people will rent before they find a suitable property to buy.
The chief executive of specialist landlord lender, Paragon, Nigel Terrington said “The recession set back many experienced Landlords who may be thinking about coming back into the market, due to the rental market picking up again”.
If you’re thinking about buying a property to let, you should think about purchasing Landlord Insurance as all investments need to be protected. Landlord insurance can offer you specialist cover that a standard household policy doesn’t.
However, similarly to standard household insurance, Landlords Insurance can include both building insurance and contents insurance. Contents insurance, however, is more relevant to Landlords who are renting out a furnished property. Landlords Insurance can also offer all or a few the following; rent guarantee cover if there are loss of rent problems, legal cover for any legal assistance that may arise, and landlord liability cover if anyone was injured due to a fault at your property that you may be responsible for.
Even though landlord insurance isn’t legally required, it is highly recommended – unless you have the capital to rebuild your house from the ground up, if your house was to be burnt down by fire or destroyed by a flood. Should the worse happen, any unexpected incident caused by a tenant could mean a considerable loss of money for anyone. Therefore, landlord insurance is something that every landlord should consider.