» Read the complete article

Many people think that once they get hold of a property and a buy-to-let mortgage then everything will be set for them to start making some money each month – but as a landlord you need to protect yourself and your business.

You must have the right insurance because buy-to-let is a business and that comes with a lot of baggage. It comes with hundreds of sheets of paper to sign, countless rules and regulations and it comes with risks that need to be protected against.

For example, if you hire builders or tradesmen to fix your property up they effectively become an employee of your business. So should they hurt themselves while working for you what do you do? They could claim for hundreds of thousands of pounds so without the right insurance your venture could fail before it begins.

The same goes for letting agents, they are also employees of your business. So how would you chase them through court if they withheld rent? It happens all the time, but it could be a lengthy and expensive process to bring a rogue agent to justice so again you need protection against that.

You will also have tenants in your buy-to-let property and they are also your responsibility. What happens if a faulty wire hurts a tenant? What if the roof falls in? What if the boiler is faulty and explodes? These are all hypotheticals but are all within the realms of reality – and if you are not covered for all eventualities it could cost you a fortune.

Talk to your buy-to-let mortgage adviser about taking out professional landlord insurance. It's different from regular insurance because it protects your business as well as your property. But then, like all good insurance, it could save you a fortune in the long run.

To keep up with the latest News and comment on the UK buy to let market visit the Buy to Let Mortgage Blog