As a result, there’s still a huge appetite for buy-to-let insurance that brokers should be focusing on. After all, an entire buy-to-let investment can be lost following a flood, storm, fire or water leak.
But by having insurance in place cover for the cost of alternative accommodation for the tenant, or loss of rental income if the home is made inhabitable, will be provided.
Unfortunately though, buy-to-let insurance is one of the trickiest things to sell.
Many buy-to-let investors often perceive it to be an unnecessary cost under the illusion that a typical home insurance policy will cover them and tenants will protect themselves with contents insurance. But as we all know a home insurance policy won’t cut it on a buy-to-let property.
For instance, property owner’s liability is one of the most important things you can insure as a buy-to-let landlord.
If a third party, or their property, is subject to loss, damage or injury following an accident on, or linked to your premises, you may legally be required to pay compensation.
To sell effectively, advisers needs to be able to compare different providers to ensure every customer profile and risk can be covered.
However, advisers must remain abreast of regulatory requirements too, as the sales process adapts to the requirements of the FCA.
The highly regulated general insurance market is making it more difficult for intermediaries to sell buy-to-let insurance, especially given the new add-on remedies and renewal transparency procedures.
Networks therefore have a responsibility to react quickly to these legislative changes and provide their brokers with simple and up to date ways to interpret and prepare for these changes.
Although the buy-to-let market is still hugely significant for our brokers, the size of the market is slowly shrinking.
Advisers must therefore put themselves in a position where they can maximise every client opportunity and offer clients a simplified way to ensure their property investments are protected.
Despite government clampdowns on the buy-to-let market, it can still be a fruitful area for brokers. One thing is now clear though, taking an innovative approach will become increasingly important when selling insurance in the buy-to-let market in the next year.