Also known as landlord insurance, it typically includes buildings insurance to protect against structural damage and contents cover if you're renting out a furnished property.
Buy to let insurance isn't a legal requirement but standard buildings and contents policies may not provide sufficient coverage, so your insurer could refuse to pay out if you don't have it. Plus it makes sense to protect your financial investment.
Buy to let insurance policies are normally available with optional extras that could:
- Cover the cost of repairs for emergencies like burst pipes, gas leaks and pest infestations
- Provide legal protection for any disputes that may arise with your tenants like the recovery of outstanding rent
- Compensate you for loss of rent so you can still meet your mortgage repayments if an accident renders your property non-rentable
You can normally insure a number of properties under a single policy. Buy to let policies tend to cover the most common risks associated with renting out a property, but they do differ in their coverage so it's important to check the small print.