Insurance

In these days of higher risks and a much more litigious public, ensuring that you are adequately insured is a vital aspect of renting a property. The types of cover you need to consider are:

• Buildings cover
  Your mortgage company will insist on this, and will protect you for damage to the building structure. Some insurers will require a surveyor's structural report to set the premium cost.
• Contents cover
  This can be combined with your Buildings cover, as like at home. Ensure that you have enough cover for your own contents; your guests should cover their own property, luggage and medical cover.
• Public liability
  Will cover you for civil actions brought by guests who may sustain injury whilst ataying at your property. Look for a policy with at least two million pounds of cover.
• Employee liability
  If you employ casual labour in the process of running your business (cleaners, local handyman etc.), this type of cover will protect you.
• Loss of rental income
  Loss of earnings cover can be taken out to protect you from income loss due to fires, flooding or other unforeseen mishap. This can be secured for a small percentage of the annual rental income, but read the small print, as you may only be covered for confirmed booking prior to any incident.
• Cancellation insurance
  If a guest let you down at short notice you may want to protect yourself from the loss. Typically, you can ensure your letting contract allows you to charge a percentage of the letting value as a cancellation fee, but this insurance should top-up your lost income.

Always indicate in your booking contract that the renter is liable for their own travel insurance, covering any medical expenses while abroad, damage or loss to their luggage, theft and possible transportation delays.