Insurance Guide for Landlords

Landlords should take care when reviewing policies subject to letting.  It is a well know fact that any failure to inform the insurer that you are renting/letting a property may invalidate any claim.  As landlord, it is your responsibility to:

• Insure the building
• Your contents
• Fixtures
• Fittings

As tenants they are responsible for insuring any of their own possessions.

There are various insurance products designed for landlords and tenants and rented property which cover many aspects of risk:

• Buildings,
• Contents
• Legal Expenses
• Emergency Repair cover
• Guaranteed Rent
• Landlords – Insurance your Contents

It is estimated that more than 50% of owner-occupied properties are under-insured, so you can be assured this figure will be higher in the buy-to-let market.  You have to make sure your contents are insured to their renew value, not what you believe their second hand value to be.

Landlords – Insure your Building! Remember, Rebuild costs are normally what your insurance company is interested in – Not standard market valuation.

The insured value must represent the rebuild of your property not the market value. It is fairly essential that you insure to the correct amount. It is estimated that over 40% of buildings are not correctly insured; are you paying too much, as you have estimated your cost on the market value, or too little as you have not estimated the rebuild costs to present market rates?

The best way to ascertain this is to ask a qualified surveyor to give you a rebuild valuation for your property; you can then insure to this correct figure.