Ask The Agent.
Richards is an independent Estate Agents in Corfe Mullen, specialising in residential properties for sale and rent as well as property management in Corfe Mullen, Wimborne and the surrounding areas.
Jason Spiers MNAEA, the owner of Richards Estate Agents, has been an agent for over 25 years.
Let us know any
questions you may have about moving and he’ll answer them for you.
Dear Jason,
I have just purchased a three bedroom house that I will be renting out. Do I insure the house, or is that down to the tenant? Mr Parker
Hello Mr Parker,
Congratulations on your purchase. The responsibility of insuring the building does belong to the landlord. Now some landlords seem to believe that insuring properties that they don’t actually live in is simply a waste of money – particularly if they are let unfurnished. Not so!
Of course, if you have a mortgage on a rental property, you will automatically be required to have buildings insurance; otherwise you will be in breach of your mortgage agreement. Some lenders are making a point of checking this out, and if you can’t prove that you are covered, your mortgage could be terminated.
If you don’t have a mortgage, then strictly speaking, buildings insurance is optional. But remember, without it, the cost of making good any damage caused by such things as burst pipes or fi re – whether caused by the tenant or not – could run into tens of thousands. In addition, you might also have to meet the cost of temporary accommodation for your tenants while repairs are carried out. So it
really is essential to have proper cover.
When arranging your insurance I would advise that you ensure it has cover for empty periods as well. Houses can be empty for some time whilst either doing repair/upgrade work or fi nding new tenants (you don’t want a 30 day empty house policy and it takes a month and half (40 to 50 days) to organise work and in turn move a new tenant in – you’ll have an uninsured property for 10 or more days!).
But what about contents insurance – particularly where properties are let unfurnished? Even here, it still costs to replace such things as carpets, curtains and white goods. Some buildings insurance policies may include a small element of contents insurance to cover such items, but landlords relying on this need to check their policy carefully. (Of course, landlords’ contents insurance will not cover a tenant’s possessions – so tenants should be advised to arrange their own cover.)
If the property is leasehold (i.e. a fl at in a block), then this would normally be obtained by the freeholder, but do check that you can rent out the fl at under the terms of the insurance policy.
You should of course carefully evaluate any insurance policy you consider purchasing to see that it meets your requirements, and you will need to ensure that you then comply with any conditions within the tenancy, to avoid any risk of losing your cover. Such conditions may include restrictions in respect of short or holiday lets, renting to employed tenants only, and restrictions on asylum seekers or company lets.
I don’t know if you are intending to use a letting agent to help you rent the house but all good agents will have various insurance company contacts to ensure you get the property correctly covered.
I trust this helps. Regards
Jason Ask The Agent is brought to you by Richards Estate Agents in Corfe Mullen.
If you have a question for Jason, please email:
jason@richardsestateagents.co.uk or feel free to pick up the phone and call us on (01202) 602121.
46 To advertise, please contact 01202 657317 or email
karen@broadstonelink.co.uk
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