Insurance World

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.

When a budget is tight it is easy to dismiss the need for life insurance. Lack of knowledge can also make an individual put off purchasing a life insurance policy. And, of course, planning for one’s own death and discussing it with loved ones is always difficult. However, the lack of life insurance can leave those you care about with burdens after your death.

Why is it necessary?

In the period immediately following a death it is much easier to arrange for a funeral if a life insurance policy is in place. The average cost of a funeral is more than $7,500.

Also, within a marital partnership, the death of the spouse does not relieve debt. Your partner will be liable for any payments that need to be made. Standard housekeeping expenses will need to be met as well. The ability for your loved ones to continue living in the same manner as they did prior to your death will also be important to you. Funding the education of any children will certainly be important.

What amount should be bought?

In order to calculate the amount of life insurance you need you must consider immediate and short term needs as well as long term requirements. Burial costs and existing debt would fall into the current needs category. Mortgage payments and child care would also fall into this group. College expenses would be an example of future expenses to be considered. Don’t forget taxes that may be due. There are many calculators available on the net which can help you to estimate the amount of life insurance you may need.

If you need help

In a matter as important as life insurance it is always good advice to get many quotes and compare them. Quotes are free and are the best way to compare plans, pricing and options. After receiving some quotes it may be prudent to consult a life insurance professional or even an attorney. Many times life insurance proceeds can be protected from taxation.

The best way to learn and save money on insurance is to collect as many quotes as possible in order to compare services and rates.