renting our house out - insurances?

[NinjaChipmunk]

We have our family home up for rent due to dp's job relocating abroad. Apart from getting a consent to let letter from our mortgage company, what do we need to do with our buildings and contents insurance? Am I right in thinking we change it for landlords liability insurance? And does that cover buildings insurance and basic contents like white goods, kitchen cupboards, ovens etc? Is that all we would need?
TIA

[NinjaChipmunk]

anyone?

[Crutchlow35]

Yes. You must change your insurance and make sure you get malicious damage by a tenant insurance - often it is an add on that YOU need to ask for because it isn't always offered or provided. Direct Line do not offer malicious damage cover at all and I would never rent a property out without it.

Is there anything else you are unsure of? With respect, if you didn't know about insurance then is there anything else you may not be aware of?

[Sunnyshores]

With a rental property, you need a Landlords Policy.

This will cover your buildings much the same as your existing private policy, but add accidental and malicious damage. You can then chose how much contents you want to cover and whether you want new for old, again add accidental and malicious damage. You then need to add public liability insurance - incase something in your house injures a tenant. (this is about another £50). You should be able to get all this for under £200.

You can then chose to add rent cover insurance or legal expenses insurance. Personally I dont bother.

I'd also join the NLA for £100pa - apart from anything else it gives a free legal helpline and is invaluable for advice about contracts, disputes etc.

Good Luck - renting out property (especially your home) isnt easy or for the feint hearted.

[MillyMollyMama]

You also need gas and electricity checks. Are you going through an agent so it is managed in your absence? It is very hard to manage a rented house when you are absent. An agent will give you all the info, such as completing the tenancy agreements, insurance, gas certificates, smoke alarms, inventory etc.

[NinjaChipmunk]

Thanks for all this. Yes I knew we needed the gas and electric tests and we will going for a fully managed service as we'll be abroad. I will give my buildings and contents insurer a call and have a chat with them re the landlords policy and the public liability.
Thanks for the tip re the NLA, will certainly look into joining.

I'm feeling rather stressed by the whole thing. Tomorrow is my last day at work, there are things to do on the house and I feel rather odd about letting my family home out. Its a good thing we are going for fully managed I think, not sure I would cope with dealing with tenants myself.

[Sunnyshores]

Fully managed is definitely the way to go in your case and it will reduce the stress and day to day running of the property. BUT make sure the Agents are reliable, some are worse than useless and will cost you money.

And even then, keep a very close eye on the monthly invoice you get from them (rent being paid, expenses they pay out). I'd also ask your neighbours to keep an eye on the house and let you know if anything seems amiss - garden unkempt, too many people in the house...

Set repair limits with agent ie they can do repairs without your permission to total of £100pcm, after that they need to ask your permission. Or for all of them? Be very clear about the type of tenants you want, pets, children, smokers, single sharers??

Is it furnished? If so there are rules regarding soft furnishing and fire safety.

You'll need to call HMCE and inform them you will need to do self assessment and need a Land & Property form.

[MillyMollyMama]

Around here most houses are let with just white goods in the kitchen due to fire regulations which are hard to comply with. Could you put your furniture into storage? What does your agent recommend? Our view is that there is far more to go wrong if you leave furniture. I do have curtains and blinds though.

[specialsubject]

you need legal expenses cover, if you get tenants that stop paying or refuse to leave (or both) it takes four months and lots of money to remove them. Rent guarantee is also good.

check the wear and tear allowance; the property needs to be fully furnished for this.

get all your stuff out; but don't pay to store for too long, gets pricey.

get agents to inspect but don't rely on it - mine were a big ARLA company and kept 'forgetting'. In fact, check on everything they do.

keep full records, you'll need to do a tax return.