Berkeley Alexander has launched a new buy-to-let landlord insurance that not only helps more landlords properly protect themselves and their investment properties against bad tenants, but also covers unoccupied homes.
The new cover, which is underwritten by Ergo Versicherung AG, part of the Munich Re Group, is being introduced to help meet high demand from buy-to-let landlords, according to Berkeley Alexander.
While there is no legal obligation for landlords to take out insurance, most landlords may find that arranging proper landlords’ insurance cover may be a condition of a loan or mortgage, which may help explain why demand for buy-to-let property insurance is growing.
Berkeley Alexander managing director Geoff Hall said: “The demand for landlords’ insurance remains high as landlords continue to increase the size of their portfolios and new landlords enter the market.
“Periods of unoccupancy go hand in hand with buy-to-let property and yet finding cover that also includes cover for unoccupied periods has long been an issue for brokers.”
Landlords insurance would normally cover a property owner from financial losses connected with rental properties. The policy generally covers the building, with the option of insuring any contents that belong to the landlord that are inside.
Policies often cover standard perils such as fire, lightning, explosion, earthquake, storm, floods, escape of water and oil, subsidence, theft and sometimes malicious damage by the tenant.
But each insurance policy is different and may or may not include all these items, and so make sure you check what is covered before taking out a new cover.