8:59 AM, 30th November 2012, About 11 years ago 10
We have received a “Readers Question” from a landlord called Cissie asking whether her friend ought to purchase landlords liability insurance for his flat even though the freeholder insures the buildings.
“Good morning mark,
I was asked by a friend as he has a let flat in a big block which has the building insurance covered by the freehold company included in service charge. He was asking if he needs to buy separate insurance to cover landlord’s liability as the agent asked him to do so. I personally haven’t purchased extra insurance for the same situation but I would like to hear your advice on this issue.
Many thanks and best regards
This is a very interesting question, thank you for raising it.
It’s not a legal requirement for landlords to purchase landlords liability insurance for flats but I do so myself and strongly recommend it.
Many landlords make the mistake in thinking that the freeholders insurance will cover their landlords liability. This is rarely the case.
We have all seen the adverts from no win no fee claims companies on the TV with slogans such as “if there is blame there is a claim”. Let me give you some examples of what could go wrong.
The list goes on.
The other thing that landlords rarely consider is the cost of defending claims. You may well have done nothing wrong but if you find yourself on the wrong end of a No Win No Fee lawyer you may well feel the need to get a lawyer of your own. If you have landlords liability insurance you are covered for that. If not, where is the money going to come from to pay for your legal advice?
I always purchase £10,000 of contents cover, even on unfurnished leasehold properties and bolt landlords liability insurance on to that policy. It’s so cheap it’s not worth taking the risk, I’d rather pay the premiums than risk paying the price if a claim ever did arise. I’ve not had a claim in over 20 years of being a landlord but one big accident claim could wipe me out so I’m not about to take the risk.
If you are not aware of the landlords buying group I set up to get a better deal on landlords insurance please check out this article >>> http://www.property118.com/index.php/landlords-buying-group/32083/
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