Research has shown that when students returned to University at Cambridge last month there was also a huge rise in property owners searching for and taking out buy-to-let property insurance.
Despite landlords taking out insurance they are still being urged to make sure they are fully covered. Each year landlords in Cambridge are guaranteed income from student lets but failing to get the correct level of cover can be a very costly mistake in the residential letting sector. Each year numerous landlords are left kicking themselves for not doing their homework before taking out a policy, and in the last decade landlords have had to be internet-savvy or be prepared to seek out an advisor if they want the correct deal.
Andrew Stocks, director at Compare the Market, said “Landlords who are renting properties to students may find that landlords insurance is an important consideration. It’s worth taking the time to find the right policy to suit your individual needs. A property is probably the main asset of any landlord, so it’s vital that their properties are fully covered to ensure a consistent return on investment.”
Typically, landlord insurance policies will cover against damage to the property by fire, flooding, burst pipes and subsidence. However, landlords need to make sure they upgrade a standard policy to include potentially costly elements of renting out flats and houses, including building cover, loss of rent, and accidental damage cover which is more common in student rented accommodation. When looking at insurers, it’s is vital to look at the overall policy and not just the preliminary cost, as excesses will vary and this will also affect premiums. Landlords are also advised to make sure that that the insurance company is reputable by confirming that it is featured on the FSA Register. Finally they are also being urged to be completely truthful on the application form, as failing to do so will invalidate a policy, potentially leaving property owners with a huge bill.