One of the most common mistakes made by property owners is not to buy the specialty buy to let insurance for their property. Most of the insurance companies consider the buy to let insurance to be a commercial enterprise, and thus, require a commercial insurance coverage. Claiming rental properties on a regular residential building and contents will lead to rejection of your claim by the insurance company. If you do not want to see yourself land up in such a situation, it is advisable to understand the difference between buy to let insurance and residential insurance and get the one that you require.

There are two major differences between buy to let insurance and residential insurance. First, is the coverage provided when the property is lying vacant or unoccupied for a specified time-period? Also, is the landlord liability coverage provided to cover any claims that may arise in the event of any accident that caused damage during the tenants’ stay in the property? The insurance companies may also have certain guidelines, such as annual electricity and gas inspections to ensure that all safety measures are taken care of.

So avoid the mistakes made by most people and you will be able to find the best deal for yourself and your property.

Various risks are involved when you are trying to insure your buy to let property as opposed to insuring your residential property. Therefore, it becomes extremely important to keep certain points in mind and select the best buy to let insurance policy for yourself.

Always remember that the buy to let insurance is quite different from residential insurance in many ways. Some of these ways include:

Unoccupied Property Limitations

In a residential insurance policy, the limitation of unoccupied property is restricted to a period of thirty days. In order to be able to claim this, you would need to go on a vacation for a period more than thirty days and then raise the claim. The buy to let insurance specifies a period of ninety days in order to be able to claim insurance coverage for unoccupied property. This can be quite helpful for those whose target tenants are students or short term tenants.

High Risk Tenants

Many insurance companies offering buy to let insurance policies need you to specify the kind of tenants that you will be letting it. This is because they refuse coverage for the high-risk tenants such as students or house shares.

The most important thing to be remembered is that all buy to let insurances are different from each other. Therefore, it is important to check the specifics of each policy before making your decision.