The policy, which is aimed at landlords with a small portfolio of properties, insures against loss of rental income of up to £20,000 and contents cover of up to £40,000. It is also the only home insurance policy for landlords, to offer unlimited buildings cover.
The bank's analysis of market data suggests that the buy-to-let market has been growing rapidly, revealing that between 2003 and 2005, the actual number of buy-to-let mortgages increased by a staggering 68%. There are now nearly three million privately rented properties, which the bank estimates are collectively worth around £453.47 billion.
Robert O'May, home insurance manager, Sainsbury’s Bank said: “There has been huge growth in the number of properties rented out privately and for many landlords, these have been excellent investments providing steady income and strong capital growth through rising house prices. It's therefore important for Landlords to pick a good home insurance policy to protect their investments. Our product's unlimited buildings cover means that they don't have to worry about calculating the rebuild value of their property and are safe in the knowledge that they won't be underinsured."
The bank believes people are increasingly investing in buy-to-let properties for a number of reasons. Parents may be doing this so that their children can live there whilst studying at university, whilst others may be looking at them as an investment for their retirement. However, as with their own homes, they need to protect them with adequate building and contents insurance.
Sainsbury’s Bank’s home insurance for buy-to-let properties, which offers a simple telephone application process, could save landlords up to £148 in premiums(1). Features and benefits of the policy include:
· Unlimited buildings cover
· Two choices of contents cover - up to £40,000 for furnished properties and £5,000 for those that are unfurnished. High risk items are insured up to £5,000 – this includes TV and audio equipment, pictures and paintings
· 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 no claims discount of up to 40%
· No claims discount protection
