So what happens if my tenants trash my property – will anyone pay for repairs once the tenants have gone?
As usual this depends on the exact terms and conditions of your insurance policies. But the right tenants insurance should certainly help. If you are letting a furnished property and have the right contents cover as part of your policy then up to around £40,000 per property can be protected. It is also possible to get cover even if you are offering unfurnished lets – and experts say it’s important to consider it. Letsure, for example, offers up to £5,000 cover for fixtures and fittings such as carpets, curtains and kitchen appliances in unfurnished homes. Replacing these without insurance can easily wipe out any rental profits you make on your investment and even make it hard to keep up your mortgage repayments. The one area of concern will centre on what are known as ‘malicious acts’ by tenants. These can seem hard to define and while some insurers and policies will exclude them several others will cover them under what are normally known as accidental damage terms. Check exactly what you are getting when you take out a policy so there are no nasty surprises later.