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Property Services
Landlord Insurance for Let Properties
This is a most
important area that should not be overlooked when Landlords let a property. The
risks associated with let properties are significantly different to owner occupied
properties therefore you are well advised to use an insurer who specialises in
this type of property insurance. An existing, standard, buildings or contents
insurance policy on a property owner occupied may not cover the property or contents
when it is let, may restrict the cover and or increase the premium. Years ago
insurance companies were not happy about covering let property in the UK, but
today you have a choice. Five of these long established specialists - Homelet,
Letsure, Rentguard, Endsleigh and Rentshield Direct can be contacted
on this page by clicking
Here. You can obtain a quote on line and arrange cover on line. 
You
should remember that the following categories of Insurance for Landlords should
be looked at: Buildings
Insurance
-This is for re-Build costs - not market valuation. It is essential that
your property is adequately insured. Sometimes the re-building value will be considerably
lower or higher than its market value. Older properties in the lower priced areas
in the UK will cost much more to re-build that their market value. In
the UK many properties are under insured, which means in the event of a claim,
insurers will not pay the full amount of the claim. If you have any concerns about
the amount of cover you need for re-building contact a professional qualified
surveyor. If you have an apartment, the buildings insurance will often be part
of the amount you pay out annually for service charges and ground rent. Check
out the situation with the block management agents. (See below) You
should also advise and obtain consent to let your property from your mortgage
lender, existing insurer and head lessee (for leasehold properties). Failure to
obtain written consent from these parties may render your insurance void in the
event of a claim. Many
general insurers and mortgage lenders will not cover the property if you intend
to place certain categories of tenants in your property i.e. Student, Multiple
single sharers and tenants in receipt of State Benefits. Check this out. NEED
INSURANCE FOR YOUR HMO or RENTAL PROPERTY? CLICK
HERE Do
you own more than one Rental Property - Want to save money? Click on Logo Below
________________________________ Usually
buildings policies will provide an element of Employers Liability cover.
This covers claims for death or injury to anyone you employ at your property i.e.
a gardener, painter etc. If you are letting to students or to tenants in receipt
of state benefit the university / local authority will normally require a minimum
cover. 
It
is also essential that your policy includes Property Owners liability cover
to a similar limit to cover injury, death or damage to individuals on or adjacent
to your property. When
you take out a Buildings Policy the main insured perils should include
Fire - Lightening - Aircraft - Explosion - Smoke
- Impact - Burst pipes or leakage of oil - Storm or flood
- Subsidence damage - Theft- Malicious damage. (Some policies
will give the option of malicious damage caused by the tenants - a valuable option
for let properties). Most
policies will compensate you for loss of rent following damage from one
of the above perils if the property is uninhabitable. Check this out with your
block management agent if you have an apartment and don't arrange the buildings
insurance yourself. It
should be noted however, that damage to property caused by tenants who are
classed as DSS aylum seekers, refugees or students will no longer be covered under
some buildings insurance for blocks of apartments and you should seek professional
advice. If your flat is let and you have not taken out additional insurance, you
will be held personally liable in the event of damage to property, including neighbouring
properties, howsoever caused, including all costs incurred by the Management Company,
solicitors, neighbours etc. Contents
Insurance
- A high percentage of owner occupied properties in the UK are under-insured for
the contents. Generally individuals place a value of what the contents are worth
not what it would cost to replace them with new items.
Most
specialist insurers will offer the option of a full contents policy or a limited
contents policy. Limited Contents Cover. As many UK properties are let unfurnished
/ part furnished. A limited contents policy would typically give a fixed limit
of cover for items such as: Carpets - Curtains - Blinds - Light fixtures and fittings
- Kitchen white goods on a new for old basis. If
your property is fully furnished or the limited contents would cost more than
£5,000 to replace, you should have a full contents policy. You would normally
select the sum you wish to insure for; again this should be adequate to replace
all of the contents on a new for old basis. Emergency
Assistance
-This type of cover will provide assistance for the landlord and the tenant in
the event of an emergency at the property such as: Failure of the electricity
supply - Failure of the cooking facilities - Lost keys - Plumbing problems - Leaking
roofs or guttering - Security of doors and windows. Policies will provide parts
and labour cover up to a specified amount and either the landlord or the tenant
can call a 24hr 365 day Helpline. (Check out the details on offer from the
insurance company) If
you have not taken a full management service from your letting agent or do not
live near your property this can be a cost effective solution. Please note that
that these policies cover Emergency Assistance only and not a repair service
through lack of routine maintenance. Legal
Expenses Insurance -
Even when using the services of a professional letting agent, problems with tenants
can occur. In many cases the tenants personal circumstances have changed during
the term of the tenancy. (See Section Advice
for Landlords) Situations like loss of their job, failure of their business,
a relationship break-up, accident or illness will effect the tenants ability to
pay the rent or their inclination to move out at the end of the tenancy. All
these situations can be resolved but will usually involve a Court hearing and
solicitors costs. Legal expenses insurance will usually cover all of your legal
costs, solicitors/barristers fees, Court and bailiffs' costs. Most such policies
will cost well under £100, which represent less than 45 minutes of a specialist
solicitors time on a normal fee paying basis. The "average" legal cost of a possession
hearing in 2001 was £785, many cost well over £1,000. Rent
Guarantee Insurance
-These policies are invaluable for many landlords. As a tax deductible premium
this will guarantee you receive the rent you are expecting from your property
regardless of your tenants personal circumstances, ability or willingness to pay
the rent. If
you have a mortgage on the property or have calculated your rental income verses
your outgoings this will ensure you do receive your rent. Most such policies will
include the legal expenses, as detailed above. You will receive your rent and
the legal fees to obtain vacant possession will be covered. Policies
will usually guarantee your rental for a fixed period, typically 6 or 12 months.
Some policies will provide additional cover once you have obtained vacant possession
until you are able to re-let your policy. The
costs vary from a fixed cost policy or are commonly rated as a percentage of the
annual rental figure, typically 3-4%. ©jmlpropertyservices
December 2004
Additional
Pages to View - Please click on the topic Insurance
advice for Landlords
Insurance Advice for Tenants
Tenants
Rental Advice Buy
to Let Uk How
to present your rental Property Selling
your property Landlord
Insurance Emergency
Insurance Cover Condensation Letting
your Property? Click
HERE for useful Information for Landlords
Part "P" Building Regulations (Electrical Safety in Dwellings) england
and Wales Click
Here Tenancy
Deposit Protection Scheme Click
Here ______________________________________ 
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