Landlords must consider insurance

by Daniel Jones

People who are renting out a home must remember to secure a comprehensive insurance policy that covers their every need prior to taking on a new tenant.

Belvoir Lettings has issued a reminder to landlords to protect themselves, after the storms, floods and gales earlier this year led to almost 500,000 claims being submitted at a cost of £1 billion, reports the Leicester Mercury.

More and more investors are entering the industry as the return on rental properties grows, so it's an ideal time for landlords to make insurance a priority. Indeed, the company said that landlords should aim to cover themselves against as many eventualities as possible.

Sharanjit Gill, the owner of Belvoir Lettings in Enderby, said that specialist insurance that protects homes against unexpected emergencies, such as flooding, is a must.

"For example, the landlord of a property who also has contents insurance with us is not only covered for the cost of damage to the property, but can also cover the cost of new accommodation for his or her tenants - eliminating the need to pay rent on other property," the expert stated.

Should a suitable insurance policy not be purchased, some insurance companies will not pay out in full in certain scenarios. It could be that no payout at all is forthcoming, so landlords must do all they can to avoid this.

Jitendra Shah, who owns the company's office in Leicester, added a warning that landlord's insurance is "very different" from standard home insurance that many people would expect to buy for their own property.

The two lettings chiefs have come together to provide the following tips to landlords:

  1. Always check whether "high-risk tenants" - such as students, asylum seekers and those on benefits - are covered by a policy.

  2. Ensure that fixtures and fittings are covered by the policy, if the property is furnished.ADNFCR-1645-ID-801710564-ADNFCR

Published on: April 7, 2014

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