Published by Sarah Ashcroft
As many as a quarter of all landlords in the UK have either no insurance policy or the wrong type of cover in place, according to the latest findings by AXA.
The insurance company carried out a study that showed one in four are not protected against certain scenarios that can unfold in a rental property, with about three-quarters of these landlords opting for regular household insurance rather than a commercial policy.
AXA suggested a significant number of those without the right cover in place are accidental landlords, meaning they did not buy a home with the intention of renting it out but have decided to do so as they cannot sell it.
One in five of those surveyed by the company said they had previously lived in the property in question and simply renewed the insurance when they moved out, believing their own policy to be suitable in cases where tenants are living there instead.
Darrell Sansom, managing director at AXA Business Insurance, said: "Someone else living in your property can present a very different insurance risk than you living there yourself - insurance products are designed and priced to match these risks so it's important you get the right one."
Some 43 per cent even said they were unaware of the existence of specialist landlord insurance, while 28 per cent thought landlord and residential policies were the same thing. Perhaps most worryingly, 11 per cent felt landlord insurance was too expensive so bought residential cover instead, believing that would protect them.
Of those questioned by AXA, 73 per cent have less than £1,000 set aside to pay for emergencies and 18 per cent have nothing at all in the pot.
Other issues that came up in the study included the fact only 53 per cent of people have a tenancy agreement in place, 54 per cent have a deposit and just 27 per cent have a current inventory, indicating some standards are not being met.
Published on: September 24, 2013