The Fixer: Insuring a buy-to-let property

The Fixer logo%VIRTUAL-SkimlinksPromo%Have you been left out of pocket due to poor service or sharp practice? Do you have a money problem that won't go away?

It can seem impossible to get a fair result when you are battling a financial issue alone. But never fear! The AOL Money Fixer is here to help.

Dear Fixer,
I have bought a buy-to-let property that I plan to rent out via a lettings agency.

I have taken out a mortgage to cover the purchase, and am therefore keen to ensure that I always get paid on time.

I also want to protect the property, and the furniture in it, from any damage that might be caused by my future tenants.

Is a standard home insurance policy sufficient to protect the flat and its contents or do I need a special sort of insurance?

Also, is there any way to protect myself in the event of the rent not being paid? Any advice would be very welcome.

T Handley, Oxford

Dear Mr Handley,

A standard home insurance policy will not suffice for your rental property.

Instead, you need specialist landlord insurance, which is available from a wide range of companies and can be found on comparison websites such as MoneySupermarket.

The level of cover offered by landlord insurance varies, with cheaper policies covering just the basics, such as fire or flood damage, and more comprehensive policies offering extras such as public liability cover.

Many insurers also offer rent guarantee insurance, which - for a price - will provide you with the peace of mind of knowing that your rental income is protected even if your tenants refuse to pay.

Using an agency to find a tenant, and of course taking a deposit, should also protect you to some extent.

The Fixer

Whatever your financial problem, write to and The AOL Money Fixer will get on the case.
Read Full Story