The recent pension reforms will also present the sector with more opportunities. With savers over 55 now able to access their pensions as they please rather than having to buy an annuity, we can expect to see more people investing in property.
As brokers, there are plenty of factors to discuss with your client in order to make sure which buy-to-let investment is the right choice, but how often is landlord protection addressed?
Buy-to-let insurance is crucial in order for a landlord to protect his investment. Unfortunately, however, it is often just an after-thought, with investors happy to take up the cheapest option.
Brokers, who may not be aware of the complexities of the product and how much it differs from standard home insurance, could be guilty of basing any recommendations on price, but cheap may not always be best.
Landlord insurance products vary considerably in cover and cost and unlike standard home insurance policies which tend to have a few staples across the board, many policies in the landlord insurance arena will differ greatly in what they cover.
Unexpected problems can prove costly if your policy doesn’t include some key features. Trace and Access, for example, can be essential in cases of water leaks. A cheaper insurance policy might cover the cost of repairing the leak but Trace and Access covers the cost of removing or replacing any part of the home necessary to access the leak.
Malicious damage can also be a common problem with rental properties, but this is not offered as standard on many policies and the same can be said for legal expenses.
Landlord insurance is essential but, choose a cheap or inferior product and you may as well have none at all.
Jason Berry is director of sales at Uinsure
