Do You Have Landlords Insurance?
Did you know that approximately 1 in 4 landlords in the UK have the wrong landlords insurance or don’t have any insurance at all? This leaves tenants and the landlord them self at risk.
It is estimated that around three quarters of the Landlords will buy a household insurance policy instead of the commercial landlord policy, again still leaving themselves vulnerable to a claim being possibly turned down.
Are you an Accidental Landlord?
Insurance giant AXA claims that most landlords with the wrong insurance are in fact accidental landlords. This is someone that has fallen into the role of a landlord by wanting to sell their current property and move but in fact are unable to sell and end up renting out their property then moving home.
Research has been conducted amongst some of those landlords who have bought the wrong insurance and it showed that 1 in 5 had previously lived at the address that is now tenanted. They had simply just renewed the existing home insurance policy when they moved out. These people had also believed that this was the correct level of insurance cover required to rent their property out.
- 43% were unaware of the existence of landlord insurance
- 28% thought landlord and residential insurance were the same
- 11% thought the landlord insurance option was too expensive
- 73% have less than £1,000 set aside for emergencies
- 18% have nothing saved should their insurer turn a claim down
- 5% are likely to claim in any given year
The research also showed some further areas that are also being neglected leaving a cause for concern that tenants are not protected via their landlord.
- only half of landlords (53%) have a tenancy agreement with their tenants
- 27% of landlords have a current inventory listing
- 54% of landlords have taken a deposit (less than half of which are kept in a deposit protection scheme)
Protect Your Assets
Many of the people who become accidental landlords never actually intended to become a landlord. The simple process of sorting out some of the basic administration requirements and putting some robust landlord insurances in place could be one of the most important decisions that you will make.
Insurance companies will also need to take some form of responsibility too and they need to be asking you the right questions to make sure the right product is being given to you.
Being a landlord comes with some element of risk. Someone else living in your property can present a very different insurance risk than you living there – a landlords insurance policy is designed and priced to match these risks so it is important you get the right one.
For more information on Landlord’s Insurance packages, get in touch with us today.