Let property insurance – commonly asked questions

The following questions are frequently asked with respect to let property insurance.

Is it required if I have a flat in a larger block?

Typically, yes, it is.

Just as if you were an owner-occupier in a flat or apartment, it may be advisable to have buildings and contents insurance for your property.

In some cases there may be common shared elements of insurance across a split property, nevertheless, if you are using your property for the purposes of income then you will need to ensure that your own cover (and any shared cover components) explicitly covers landlord properties.

What about if I only rent out my property for a few weeks per year?

It may be advisable to read your own policy for certainty, however; typically any use of your property for commercial purposes (including rental income generation) may require let property insurance in order to ensure that your buildings and contents insurance protection remains effective.

Supposing I am only renting out a couple of rooms and still occupy the property as my own residence?

Typically, such a situation may make no difference – though again, it may be useful to consult your policy to be sure.

Ordinary owner-occupier home buildings and contents insurance may be put at risk if you start to rent out sections of your own home.

Does landlords buildings insurance cover me for subsidence?

Some policies may do so but this is no longer something that you can assume to be a given, as may have been the case in previous decades.

Given the potentially catastrophic costs of rectifying a subsidence problem, it might be a good idea to search for landlords cover that does provide protection in these circumstances.

Will buy to let insurance cover unpaid rent arrears if tenants abscond?

That may be rather unlikely. Classic landlord insurance may also not cover you if you become embroiled in a legal battle trying to force eviction.

On the plus side, some let property insurance policies may cover you for wilful damage caused by tenants etc. The cover may also extend to third party liability damages awarded against you by a court.