Why landlord insurance is so important.
The buy-to-let market continues to grow at pace, with forecasts showing pundits agree growth will continue in the New Year.
Many landlords, both established and novice, are buying more properties – plus it looks like there will be increased stock on the market in 2014.
While getting into the buy-to-let market is a good way of securing a self-employed income, it does come with pitfalls.
Not only do landlords fret about receiving their rent regularly, but also they are concerned about what happens if damage is sustained to their premises and they face the costs of legal action.
Landlord insurance is able to take away some of this worry to make renting out property much less stressful.
Of the many situations a landlord may find him or herself in, one that benefits from having landlord insurance is if your property is ever rendered uninhabitable. If this is the case you will be both faced with repair costs and the burden of finding an alternative location where your tenants can stay. As well as the potential of lost rental income, this could also trigger legal costs.
Similarly, if tenants get behind with payments, the eviction process can’t start until payments are overdue by two months. This means the landlord could face cash-flow issues and be out of pocket for a period. Landlord insurance is able to enable use of a scheme that guarantees rent to prevent severe financial losses.
Any landlord who has been confronted with a legal trial knows that costs can mount quickly. However, for a reasonable premium, protection against high costs can be provided. Emergencies, like if a boiler breaks down or a pipe bursts, not necessarily included in an average policy can also be covered.
At MTP Insurance we are able to offer great rates from leading insurers with access to a large variety of schemes and products. Our team prides itself on being able to source cheap prices, great levels of cover, and providing great service.
All landlords benefit from insurance of this type, but certain groups can benefit more than others. One example is those landlords that operate their buy-to-let businesses in areas where students seek to live.
Renting to students poses a potential for higher risks and so landlords are more likely to experience properties being damaged. Although the economic climate is recovering there are no guarantees that landlords will receive their rent in a timely fashion.
At MTP Insurance our team aims to provide you with policies that cater for whatever needs you have, at an affordable price. Contact us now and ask for a free quote and consultation.