Do you have insurance for your property? It’s usual to have insurance which covers the building against “acts of God” or subsidence etc., and your tenants should have contents insurance for their goods, furniture and valuables – but do you have insurance for your tenants?
Letting your property doesn’t have to be a gamble – the right insurance can support you when issues arise.
Let’s look at an example:
You have a property with a £1,000 per month rent. Unfortunately, in this circumstance, your tenants are no longer paying you their rent on time. As such, you now need to seek possession of the property. Assuming this takes you 3 months from the last rent payment, you could be in for a payment of over £20k
Here’s the calculation:
TOTAL @ £22,400 +
When you consider that the average buildings and contents insurance claim for damage following a leak is in the region of £25k (roughly 28% of claims result in this amount) – and that a 3 month process is somewhat conservative the example above – your uninsured claim to seek possession of your property could be more expensive than a major leak in your own property!
Why gamble with your income, and with your property? Letting insurance for the above property (£1,000 per month rent) is from just £360 per year. That’s just £30 per month. It’s a pretty good investment in the long run.
Insurance. It’s a word many of us groan at when we hear it. BUT – it’s all too easy to take security for granted and insurance is there to help when that security falters.
Want to find out more? Click here to get in touch with a member of our team who can give you some more guidance.