11:34 AM, 24th June 2016, About 6 years ago
THE UK has voted to leave the European Union and the last thing you need to worry about is your landlord insurance cover. Your landlord insurance is remaining the same as it was yesterday and the day before that.
The EU and Landlord Insurance
The big UK insurers are well financed and operating within the Sterling currency. No insurers are going to go pop today or anytime in the near future as a result of this referendum.
What does it mean for Landlord Insurance prices
If you need to buy Landlord Insurance then you will not see any change happen quickly. The fact is we work in Sterling, so regardless of shock devaluations in currency, your insurance will not be immediately impacted.
Already we are seeing Sterling come off its lows and start to move back towards prior levels. By mid-morning we have seen the stock market recover to above the 6000 level that it has been trading around for the last months.
I believe strongly that the financial instability happening today will calm down over the next two weeks and then stabilise pretty close to the same levels as before the referendum.
In the any length of term, I don’t see a huge difference to Home Insurance prices, this is a competitive UK based market place. Working in the same currency and against the same demand and house price levels, it will remain the same. It could go up or down a little bit, but don’t expect to fall off a cliff or sky rocket to the moon.
So if you need Landlord Insurance, you can still buy it now at the same prices as before and it will still give the same cover.
The idea that the UK will go through a house price crash may suggest values change but that will not impact on rebuild values that insurance is based on, so no change there either. Indeed, with supply so far behind demand in the UK, it is unlikely that this house price crash would happen anyway!
Indeed the removal of the Cameron/Osborne landlord bashing buddies may actually be good for landlords – we can hope at least. A reversal of C24 is maybe more of a likelihood now, as is the spectre of possible further interest rate cuts. The effect on the housing market is far from determined yet and I think in a year’s time we may actually look back and see it as positive.
So keep calm and put your Landlord Insurance fears to the back of your mind. This referendum result will have little to no change on the industry and your own policies. And if you need to buy Landlord Insurance, check out Property 118’s price guarantee, we can save you money!
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