Some landlords 'failing to get specialist cover'
by Sarah Ashcroft
Almost one-fifth of landlords operating in the UK do not have insurance in place on their rental properties to protect them against costly repair bills, a study has revealed.
Research carried out by Direct Line for Business and reported by Property Wire has found such was the case for 18 per cent of proprietors, who do not have specialist cover in place.
According to the insurance provider, landlords incur annual costs of £8,256 on their property portfolios
, spending an average of £2,848 on repairs.
Drawing an annual income of £94,344, property owners usually hold around 5.3 dwellings at one time, but could risk paying for maintenance from their own pocket if they do not have insurance.
Researchers highlighted the largest reported cost was for repairs, while cover was the second highest, accounting for £1,329 or 1.4 per cent of the gross annual rental income.
In addition, estate agent and property management fees were also ranked highly on the list of costs, with the former collecting 8.9 per cent of the total and the latter taking 12.6 per cent.
However, despite the high prices faced by property owners without valid cover in place, 18 per cent of individuals interviewed said that they do not have a policy.
Commenting on the findings, Jazz Gakhal - head of Direct Line for Business - said that failure to have landlords insurance is a "huge risk" for proprietors.
He noted that those who do take out a policy could find themselves saving substantial sums of money if properties become uninhabitable due to an insured event, such as a fire or flood.
The insurance expert added: "A good landlord's policy will also include public liability insurance, also known as property owner’s liability insurance, as standard as you could be held liable for injuries on your property or damage to neighbouring property."
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Published on: December 10, 2012
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