With an alternative value settlement, compensation will cover the fundamental costs of replacing the damaged property. The property, nevertheless, will have to be reinstated to qualify for this settlement. If it is not replaced, the settlement, by defect, will likely to be actual cash value.

Landlord’s insurance will only cover the property and the legality of the landlord. Damages to personal possessions or another person’s goods within a tenant’s residence become the liability of the tenant. Taking out a renters’ insurance policy will grant liability coverage and, in some cases, it could also cover appropriate legal costs.

Different Types of Cover:

Buildings Insurance - The structure itself is insured against most risks for the cost of repair or rebuild in the event of a flood or fire.

Contents Insurance - It is essential that you insure the items you own such as carpets, sofas, chairs and even pictures in case they become damaged or stolen.

Liability Insurance - One of the many benefits of buy-to-let insurance policies is that they're designed to give you complete peace of mind by making sure you have every risk factor covered. As the buy-to-let property market soars, personal injury claims have risen dramatically in the last 20 years and awards over £100,000 are not uncommon (information from the Association of Residential Lettings Agents - ARLA). So the right liability cover is a must.

Loss Of Rent Insurance - Covers you for up to 12 months ensuring your bank balance stays in good shape should damage or building work make your property uninhabitable.

Free Accidental Damage Cover on buildings - This cover is designed to protect you against damage by your tenants to your building.

Alternative Accommodation Insurance - To many people the benefits of buy-to-let Insurance may seem obvious. The contents insurance will cover your furniture while buildings insurance will cover any damage done to your property. But it's equally important not to overlook other areas such as alternative accommodation insurance in the event your property becomes uninhabitable. Dez Broatch