Buy to let mortgage, rent to family-who insures the building?

A question about : Buy to let mortgage, rent to family-who insures the building?

Hi,

My dad is buying a property on a buy to let mortgage for me and my partner to live in, with a view to selling it to us in a few years once I build up my credit rating. My partner and I will be covering all costs associated with the property (during the purchase and while living there), including insurance. I understand we insure our own contents. Can we also insure the building in one joined policy? Or do we need to get a separate insurance policy in my dads name for the building as a rented property?

I have noticed online that for landlords insurance its asked if there is a tenancy agreement in place. We dont plan on having a formal one as you would if it was an outsider as the tenant-do we need to get one in place from an insurance (and mortgage if anyone can advise on this) point of view?

Thanks in advance.

Best answers:

• I would have thought the mortgage lender would want to see a tenancy agreement but I might be wrong.
• In theory your tenancy agreement can make you legally liable for the building which gives you an insurable interest. Unfortunately most insurers dont give tenants the option of insuring the building but a local broker may be able to arrange appropriate cover.
  Cross compare that price then with simply getting a landlords policy in your fathers name and standard contents insurance in your name.
• If the property is bought on a mortgage then the provider will insist the owner insures the property, there is nothing to stop you reimbursing your dad for this.