RESIDENTIALlettings
Ask the expert...
“Our landlords are cutting down on insurance. How do I convince
them that this is a really bad idea?” Andy Wynne Jones, Head of Underwriting and Product Development at HomeLet has the answers.
Q First things first – why do landlords need specialist buildings and contents insurance? A It is a surprisingly common misconception that a run-of-the-mill homeowner’s buildings and contents policy can cover a property once it is let. Landlords that proceed down this route should do so with caution. Becoming a landlord carries legal responsibilities
that are all too often overlooked; a good quality policy will include tailored liability cover in the event of negligence on the part of the landlord. A specialist landlord’s policy will include essential covers to cater for the risks associated with letting a property. Much as we wish it wasn’t, it is a fact of a life that let property
will be unoccupied between tenancies at some point – another key area of cover. Quality policies will cover you for up to 90-day void periods without any restrictions, onerous inspection requirements or the need to drain your water system – ordinary owner occupier policies will not apply if the property is tenanted.
Q In the event of a disaster, what happens if the tenant has to move out? A Chances are you’ll still need to pay your mortgage. A fire, a flood or even a water leak from a pipe can cause a lot of damage and, repair costs aside, take a long time to put the property back to a lettable condition. Specialist policies cater for this and provide for lost rent during these periods – this is essential cover if you still have bills to pay. Accidental and Malicious Damage cover should also be an option. You may be holding a deposit but what if the damage caused by the tenant is more than the cost of the repairs?
58 JUNE 2010 PROPERTYdrum
Tenants may trip up, or electrocute themselves in the shower – landlords need the right protection.”
We’ve all seen in the press the damage that a cannabis factory can cause to a property, but of course this wouldn’t happen to us… Emergency Assistance cover is also valuable addition to any
specialist policy – you don’t want a call at 3am from your tenant with water coming through the ceiling, or with no electricity – make sure your insurers get the call, not you.
Q Does a landlord still need specialist contents cover if their property is unfurnished? A Unfurnished lets are preferred by many landlords but what does this actually mean? Does the property have carpets, curtains or blinds? Light fittings, a fridge, freezer, cooker and washing machine? All of these are contents and yet we still refer to this as an unfurnished let. Specialist contents policies are available for unfurnished
properties. They will cover the basic contents outlined above, and in today’s litigious society, should also include tailored liability cover to protect the landlord. The tenants may trip on some loose carpet, they may even electrocute themselves on the cooker – landlords need the right protection.
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