Should offers to buy properties be accompanied by a deposit?
3 years ago | 10 comments
What happens to my landlord insurance?
12:02 AM, 25th January 2023, 3 years ago
6
Hello all, I have a question regarding the setting up of a limited company and transferring the only rental I have into it.
What happens to the current landlord insurance I have got in place?
I am the sole director of the company. I guess I can consider myself still a landlord since the property and the company are owned and run by me.
Does the landlord insurance have to be changed to be in the name of my company or can it continue to be in my name as the landlord?
Thank you,
Yas
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Member Since October 2016 - Comments: 189
11:40 AM, 25th January 2023, About 3 years ago
You are not the same as your limited company, so you need to ensure that insurance is in the company’s name.
Member Since September 2021 - Comments: 2
5:43 PM, 25th January 2023, About 3 years ago
My personal view is, If the property is unencumbered and dependant on whether the Limited Company has paid you in full for the property or whether monies are still owed to you, is that you should keep the insurance in your name and add the Company as an interested party, until the Company has paid you in full.
If the property is mortgaged then the insurance should be in whoever has the mortgage.
Member Since January 2020 - Comments: 559
10:48 AM, 26th January 2023, About 3 years ago
Reply to the comment left by Paul Cartwright at 25/01/2023 – 17:43
What is important is that the person/body with the insurable interest implements the insurance. As a director I cannot see how you have an insurable interest; to insure in a personal name is risky – I do know of a case where insurance did not pay out as property ownership had been transferred, but not the insurance.
Some lenders want to be noted on policies, but they are not the insured.
For the small cost of making sure insurance is valid, the OP should speak to their broker, bit match the policy name to the ownership.
Member Since September 2022 - Comments: 9
11:29 AM, 27th January 2023, About 3 years ago
thanks everyone for the advice. The incorporation of the property is still under way so i will keep it in my name for the time being, after that i will talk to the insurance compamy and see what they say.
my 2 cents is that i have cancel the policy and do one in the company name….
Member Since September 2022 - Comments: 9
11:42 AM, 27th January 2023, About 3 years ago
One more thing when shopping for landlord insurance, i don’t recall they ask at the beginning if i am individual or i am limited company.
Member Since September 2021 - Comments: 213
6:11 PM, 2nd February 2023, About 3 years ago
Reply to the comment left by ficodindia at 27/01/2023 – 11:42
It does not matter whether they ask or not.
Graham Bowcock is absolutely right.
In law, you have to have an insurable interest.
That is why the Landlord’s Personal Contents Policy cannot cover a Tenant’s personal Contents.
When you complete an Application Form for a Policy, I am sure you have to state who the owner is.
It cannot be you, if the owner is a company.
Further, the law is that you must disclose everything, and not expect the insurance company to ask you.
This is called the doctrine of uberrimae fidei.