Buy to let property insurance is a bundle, and a first time landlord buying it online is choosing between defaults they have never seen before. The useful way through is to treat it as a list of sections and decide each one deliberately: two are effectively compulsory, three are usually worth having, and two or three are options that depend entirely on the property and the tenant.
The sections that are effectively compulsory
Buildings cover on the rebuild figure, because the mortgage requires it and because the building is the asset. Property owners liability, because it is the section with the largest possible claim and it costs very little. On a leasehold flat the buildings half is usually the freeholder's, which changes the shape but not the principle.
The sections usually worth having
Loss of rent, so the mortgage is still served while the property is uninhabitable. Landlord contents, because carpets, curtains, white goods and any furniture you supplied are yours and add up faster than owners expect. Accidental damage, because that is where tenant damage actually lands and a deposit covers only the first layer of it.
The options to decide rather than default
Malicious damage by tenants, which is rarer and usually needs a police report. Rent guarantee, which depends on whether you could absorb six months of arrears. Home emergency cover, which is a call out service and is most useful if you are not local. Legal expenses, which pays for possession proceedings and is often the cheapest way to make a possession action affordable.
What decides the premium more than anything
The tenant type, the property type and the postcode, in that order. Professional tenants price better than students, students better than tenants on benefits, and a house better than a flat above a commercial unit. None of these is a reason to misdescribe the let: the premium difference is smaller than the claim you lose by getting the description wrong.
Questions people ask about buy to let property insurance
What does buy to let insurance cost?
It varies with the property, the postcode and the tenant type more than with the insurer, which is why a quote is the only honest figure. The sections you choose move it as much as the property does.
Is rent guarantee worth adding?
If six months of no rent would be a problem, usually yes. It is heavily conditional on referencing and on the tenancy paperwork being right, so read those conditions before buying.
Do I need legal expenses cover?
It is often the cheapest section and it pays for possession proceedings, which are otherwise a significant unbudgeted cost. Most landlords who have used it keep it.
Does the policy cover the boiler breaking down?
No. Breakdown is maintenance, not damage. Home emergency cover makes a sudden failure safe; replacing an old boiler is a cost of owning the property.