Protection

Protect your bricks and mortar. Traditional buildings insurance is vital for any property owner. But experts say many buy-to-let investors are dangerously under insured. That’s because you need to insure the rebuilding cost of your property, not its market value. For some expensive owner occupied homes in great locations the rebuild costs may be lower than the market value. But lower value investment homes in less desirable areas may be in the opposite camp. If a fire, gas explosion or other peril destroys a £45,000 property it can cost £55,000 or more to rebuild it. So landlords need to check they have the right amount of cover. If you under-insure your whole claim can be refused – so you won’t be able to just top up the difference yourself. Insurers use standard systems to calculate rebuilding costs – get more details at the Association of British Insurer’s website www.abi.org.uk. Look at the ABI/BCIS Rebuilding Cost Calculator.