Buy-to-let investment at risk if left uninsured

Since the end of 2005 the number of buy-to-let mortgages has increased by 21%, according to analysis of market data by Sainsbury’s home insurance. There are now nearly three million privately rented properties in the UK, which the bank estimates are collectively worth around £510 billion.

With this level of investment, Sainsbury’s Bank warns landlords to ensure they are adequately covered. The bank offers a home insurance policy especially for landlords that insures against loss of rental income of up to £20,000 and provides contents cover up to £40,000. It is also the only home insurance policy for landlords that offers unlimited buildings cover.

London’s privately rented property has the highest estimated value at around £146 billion whilst the North East has the lowest at almost £14 billion.

Robert O'May, home insurance manager, Sainsbury’s Bank said: “There has been huge growth in the number of properties rented out and it’s a lucrative venture for many. It's therefore important for landlords to pick a good home insurance policy to protect their investments. Our product, the only one to offer unlimited buildings cover, removes any need for landlords to worry about calculating the rebuild value of their property and gives them peace of mind that they won't be underinsured."

Sainsbury’s Bank’s home insurance for buy-to-let properties offers a simple telephone application process. Features and benefits of the policy include:

Unlimited buildings cover
Two choices of contents cover - £40,000 for furnished properties and £5,000 for those that are unfurnished
Loss of rent income up to £20,000
Unlike some home insurers, Sainsbury’s Bank does not apply charges for customers paying their premiums by direct debit
Maximum protected no-claims discount of up to 30% as standard
No claims discount protection

For further information on Sainsbury’s Bank’s buy-to-let home insurance, visit sainsburysbank.co.uk.