Landlords Contents Insurance

The phrase buy-to-let is becoming evermore popular. Since the mid-nineties, a huge surge in house prices has made the UK property market a lucrative investment for those able to invest such resources.

With this, we have seen an increasing number of landlords buying property and renting them out. It makes simple business really – you buy an asset, watch it increase in value over time and make good use of it by leasing it out, often making a profit on the rental income to cover the current mortgage repayments.

During the late nineties, the first buy-to-let mortgage was introduced, designed specifically for investors to borrow money to purchase property within the private rented sector in order to let it out to tenants. Today, there are nearly one million buy-to-let mortgages within the UK.

The 21st century has also seen a huge shift in social trends, with more and more individuals having work commitments that require them to travel on a more regular basis. Rented property offers a simple housing solution for those that need a ‘get up and go’ option without tying the individual down to lengthy and complicated mortgage procedures. A simple six-month tenancy agreement offers a short term answer to accommodation without the need for long term commitments. The ease of rented property is a careful consideration to think over when opting to gain the experience of moving out of the parental home for the very first time. Rented accommodation offers a degree of mobility and flexibility at an affordable price.

With the world we live in today, crime is still a factor that affects all of us. Theft in particular is still something that is still at large wherever we go or who ever we talk to. That makes it more important than ever to make sure you are adequately covered by an insurance policy, whatever your personal circumstances may be.

If you own a buy-to-let property, landlord insurance is a specialist insurance package to cover you as a landlord for your ownership of a property that you lease out to other individuals, usually known as ‘tenants’. If you leave this property furnished, these contents are in the hands of other individuals, which in turn makes the risk higher to insures due to a ‘lack of care’ and responsibility for belongings that tenants do not own themselves.

Making sure you have the right package at the right price is imperative. Over the last five years, new apartment blocks have been built in what seems to be every town and city within the UK. The reason for this is the huge housing shortage, with apartments offering multiple housing and accommodation on a relatively small piece of land.

Apartment blocks also offer a cheaper alternative to buying a traditional house – with the majority being aimed at younger or first time buyers as a way to get their foot on the ladder. The appeal of owning a brand new property is a unique selling point in its own right, and coupled with the location, they make a lucrative prospect to the younger generation.

Many property investors have taken note of this change in housing and with the ever-rising house prices, many landlords are seeing apartments as a new alterative to traditional housing.