Landlords Insurance – don’t get penalised if you are a good risk

by Property 118

10:41 AM, 12th July 2013
About 7 years ago

Landlords Insurance – don’t get penalised if you are a good risk

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Landlords Insurance – don’t get penalised if you are a good risk

Why is landlords insurance for Working/Professional HMO’s, Student lets and tenants claiming benefits so much more expensive?

In a word – RISK

However, as it transpires, it is possible to insure any rental property in the UK for a premium of £1.10 per £1,000 of cover plus Insurance Premium Tax providing there is a decent claims history and the property is structurally sounds and not in a flood plain area. That’s around 50% of standard pricing for these types of properties!

For landlords insuring a portfolio of three or more properties and a mix of risks (i.e. some standard houses and working tenants too) the premium can be reduced by a further 10 pence per thousands of buildings insurance through commission sacrifice by the broker. This is because the administrative costs are lower when spread across multiple properties insured by the same owner.

I was given the heads up on this by a couple of Property118 Members and felt compelled to follow this up.

Not only does it check out well but the cover also includes the following:-

  • Malicious damage caused by tenants
  • Landlords liability insurance
  • £5,000 of contents insurance as standard

It doesn’t cover any criminal damage as a result of properties being used as cannabis factories but most insurance companies don’t offer that cover anyway. There are several articles written here to help you reduce that risk too so please search cannabis factory in the top right search bar for more information on how to protect yourself.

The broker offering this scheme has agreed to make a generous donation to The GOOD Landlords Campaign if we test them out.

They are not our regular recommended insurers for our Landlords Buying Group at this stage but we do keep our options open and it will be interesting to see what feedback we get from readers we refer to them.

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Comments

2:10 AM, 13th July 2013
About 7 years ago

So what about a flat owner who is required to have the managing agents buildings policy!?
It is NOT possible for a LL flat owner to have insurance which covers loss of rent in the event of loss of amenity.
Such insurance DOES exist; but you may only obtain this via an add on to a buildings policy and it is not allowed to have 2 buildings policies on the same property.
I have searched the whole of the UK insurance industry and NOT one company will insure loss of rent in the event of loss of amenity unless you have a buildings policy...................................which you CANNOT do with flats!!
This affects every flat owning LL in the UK.
This situation has cost me over £9000 pounds following a flood.
Yes the property was repaired; there was no tenant at the time and consequently NO rent.
So I had to struggle to pay the rent until the flat was repaired; the lender had no sympathy at all and would have repossessed if I could not pay the mortgage.
This is a risk every LL faces whilst inbetween tenants.
The block insurance would pay for TA for the tenant who would hopefully continue with paying rent;BURT there is NO guarantee they would wish to faff around whilst the LL has the property repaired.
How many Flat owning LL realise how at risk they are!!??


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