What You Need to Know about Renting Your London Home
Wednesday 23rd December 2015
The UK capital’s property market is at something of a crossroads. Recent studies found that over half of investment is actually coming from overseas investors, which has created a market where all but the most affluent are able to get their foot on the property ladder. More people are now renting rather than buying, with the average rate increasing to £1,500 a month. Buy-to-let is an increasingly valuable market, so it's crucial that you take the necessary precautions to insuring yourself and your property. Here’s what you need to know
Buildings insurance covers you against any damage to the property itself. This includes the roof, walls, ceilings, floors, doors, and windows as well as any outdoor structures such as garages and fences. If your property suffers from major structural damage, at the cause of a disaster like a flood or a fire, for instance, your provider could also pay for it to be rebuilt depending on their terms and conditions. In this scenario, you’d need to accurately declare the value of your buildings insurance contract and remember that the cost to build your home is not necessarily the same as the price you paid for the property.
Contents insurance covers what’s inside your property. If you are marketing the property as unfurnished, you’ll still need this to cover you against any damage towards the carpets, light fittings, or any white goods that are in the home. Typically, contents insurance will not cover you against theft unless there is proven “forced or violent entry.” This is so insurance companies don’t have to pay out when a tenant leaves with something they shouldn’t have at the end of their contract. To protect yourself against this, you should demand a deposit at the start of the lease which you can use to deduct from if anything is missing at the end of the contract.
Finally, while buildings and contents insurance will provide you with the basics of what you’ll need, they don’t cover everything. In fact, there are many additional forms of cover that may be relevant to you. Take a look at http://www.homelet.co.uk/to see some of the unique circumstances that you may need to be prepared for. Similarly, if you plan on employing someone to work in the property, such as a cleaner or a gardener, you’ll need employer’s liability insurance. This insures you if anyone gets injured on your premises and can help to pay for any legal fees that could be required.
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Editorial Contact Details - Conor Shilling