Landlords Insurance for HMO’s, Student lets and tenants claiming benefits

by Mark Alexander

11:27 AM, 27th June 2013
About 7 years ago

Landlords Insurance for HMO’s, Student lets and tenants claiming benefits

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Landlords Insurance for HMO’s, Student lets and tenants claiming benefits

Landlords Insurance for HMO's, Student lets and tenants claiming benefitsWhy is landlords insurance for a mixed portfolio that includes working tenant HMO’s, Student lets and tenants claiming benefits so much more expensive?

Well until this week I thought I knew the answer!

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 five 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 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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