There are many different types of Landlord. From the individual who is renting out their second home to the ambitious property tycoon with an ever-increasing portfolio of trendy dockside apartments. The common theme for all landlords is the need to purchase landlords insurance to protect their investment.
Food for thought?
As a landlord, you are effectively using your property as an extra source of income – and this needs to be protected. A normal home insurance policy is not valid when you are taking an income from the property. A residential landlord policy is what is required.
With the correct landlords insurance policy in place, you can relax knowing that should any damage be caused to the property you are protected against the financial consequences. With this peace of mind in place, you can worry about running your property and nothing else.
Examples of claims which Landlord’s Insurance covers you for:
Landlord’s insurance would pay you should the following happen:
• Your property is massively damaged by a fire. Luckily your tenants are not hurt but they have to move out as the damage is so bad. It takes builders and decorators 3 months to repair the damage. Your landlord’s insurance policy would not only pay for all of the work to repair the property but also pay you the rent that you are missing out on by not having tenants living in the property during this period.
• You fall out with your tenants. They stop paying the rent and refuse to leave the property. You are forced to take them to court to get them evicted and collect rent owed to you. If you have purchased the “Legal Expenses” cover as part of your Landlord’s insurance policy then all of your costs accrued in fighting the court case would be compensated.
Frequently Asked Questions
What is the Buildings Sum Insured (BSI)?
You are always asked to give an estimate for the Buildings Sum Insured (BSI) when going through the process of getting a Landlord’s Insurance quotation. This is an estimate of the cost for rebuilding your property should it be completely destroyed. Do not confuse this with the value of the property (which is normally much more – especially in prime city-centre locations) otherwise you will be paying more than is necessary for your insurance. On the other hand, do not be tempted to deliberately understate the BSI since should it come to making a claim the insurers will reduce the amount that they pay you in proportion to the amount you have underestimated.
Why am I not already covered under my normal home insurance?
Home insurance policies will not pay when the property is being used to make an income (for example when you are renting your property to tenants). You must therefore buy a Landlord’s Insurance policy which is especially designed and rated for these circumstances.
I have several properties, do I need to buy one policy per property?
No, you can buy one policy which covers as many properties as you have. Using our online quotation system you can receive instant quotations from many of the UK’s top insurers for one property or multiple properties.
How do insurers calculate the premium for Landlord’s Insurance?
Different insurers use different ways of assessing the risk of your property and therefore how much to charge you.
Some of the major factors are:
• The location of the property (postcode)
• The Buildings Sum Insured
• The type of tenants in the property
• A history of claims
• The age of the property
• The type of property (flat, detached, terraced etc)
Instant Landlord Insurance Quotes
Decision Finance offers you instant online quotations for Landlord’s Insurance upon completion of a short online form. You will receive quotations from some of the UK’s top insurers including Norwich Union, Zurich and Groupama. This means that you can compare what cover you get and prices easily and quickly with absolutely no fuss.
Should you decide that you wish to proceed with one of the quotations you receive you can buy your policy online and then simply print off your policy documents. Alternatively you may wish to register your interest and ask to be called by an advisor who can talk you through the features of the each of insurers policies and answer any questions that you may have.
Buy to Let Insurance
Landlord Insurance is commonly also known as buy to let insurance. The cover available under a buy to let insurance policy is the same as a landlord insurance policy. You can get cover for your property, contents and landlords liability insurance. You will also be able to get insurance for a portfolio of properties as well as a singular property.
Article provided by our partner, Decision Finance. If you need buy to let landlord insurance cover then Decision Finance can help, they have partnered with over 20 of the UK’s leading insurance specialists.
Friday, 10 September 2010
Friday, 2 April 2010
Letsure announced landlord insurance tie up with Hamptons International
Lettings insurance specialist Letsure has agreed a deal to provide rent guarantee insurance products to landlord customers of residential agency Hamptons International.
The new product, which covers rent and legal protection, will cover landlords against losses that occur as a result of unforeseen events, such as tenants failing to pay their rent or breaching the terms of the tenancy.
Commenting on the product, Ian Fraser, managing director of Letsure said: "Letsure is delighted to be working with such a prestigious brand as Hamptons International.
"The product that we have designed for Hamptons International is one of the best available in the marketplace and we are confident that it will be warmly received by their customers."
Lesley Cairns, head of lettings at Hamptons International added: "I am excited about this bespoke service we are offering to our clients as there are many unexpected circumstances which put landlords at risk.
"Some tenants may not have a spotless credit history particularly following the last 18 months, so landlords need to consider tenant history and affordability especially as unemployment remains challenging."
The new product, which covers rent and legal protection, will cover landlords against losses that occur as a result of unforeseen events, such as tenants failing to pay their rent or breaching the terms of the tenancy.
Commenting on the product, Ian Fraser, managing director of Letsure said: "Letsure is delighted to be working with such a prestigious brand as Hamptons International.
"The product that we have designed for Hamptons International is one of the best available in the marketplace and we are confident that it will be warmly received by their customers."
Lesley Cairns, head of lettings at Hamptons International added: "I am excited about this bespoke service we are offering to our clients as there are many unexpected circumstances which put landlords at risk.
"Some tenants may not have a spotless credit history particularly following the last 18 months, so landlords need to consider tenant history and affordability especially as unemployment remains challenging."
Tuesday, 30 March 2010
RISING RENTS POSE POTENTIAL RISK FOR LANDLORDS
In light of the recent RICS survey revealing that more letting agents expect rents to rise over the next three months, landlords are being urged to rigorously vet potential tenants before handing over the keys.
According to the latest RICS residential lettings survey, which covers the three months to January 2010, more surveyors reported a rise in rents than a fall. This follows five consecutive quarters of negative readings.
The expectation for achievable rents also rose with 33 per cent of respondents believing rents will rise over the coming quarter compared to just 22 per cent last quarter.
Similarly FindaProperty’s Rental Index for March revealed rents have risen for the second consecutive month and are now £16 pcm higher than in January at £820 pcm. According to the survey the firming of rents has been underpinned by a reduction in the availability of rental properties on the market, which are now at the lowest level since October 2008.
Managing Director of HomeLet John Boyle welcomes the increase in rents which he hopes will increase yields and encourage more people to enter the buy-to-let sector as well as help alleviate the widely anticipated shortage in rental properties.
However he says increases in rent asking prices could also cause problems for landlords further down the line.
“If rental prices continue to increase owing to the decline in supply of both flats and houses in the marketplace, people looking to rent may not be able to afford to do so or may struggle to make their monthly rental payments,” said John.
“For that reason I’d advise landlords to make sure they know exactly who they’re letting their property to. Tenant referencing is a crucial area that is often neglected. Yet it can be the single most significant factor in protecting letting agents and landlords from tenants who can't or won't pay the rent.
“Even the best tenant on paper can fall on hard times, especially in the current financial climate. As a tax-deductible premium Rent Guarantee insurance therefore will guarantee you receive the rent you are expecting from your property regardless of your tenant’s personal circumstances or ability or willingness to pay the rent.”
Unfortunately rental arrears are still a real threat for many landlords. In 2009 HomeLet paid out £3 million in Rent Guarantee insurance claims compared to £2.8 million in 2008, which is an increase of over 7 per cent.
HomeLet’s Rent Guarantee policies, which are available through their approved letting agencies (of which there are around 3,000 nationwide), will cover the rent for either six or 12 months. They also include legal expenses to evict the tenant for non-payment of rent and depending on the policy can provide additional cover once vacant possession has been obtained and a new tenant is being found.
For more information please visit www.homeletuk.com
According to the latest RICS residential lettings survey, which covers the three months to January 2010, more surveyors reported a rise in rents than a fall. This follows five consecutive quarters of negative readings.
The expectation for achievable rents also rose with 33 per cent of respondents believing rents will rise over the coming quarter compared to just 22 per cent last quarter.
Similarly FindaProperty’s Rental Index for March revealed rents have risen for the second consecutive month and are now £16 pcm higher than in January at £820 pcm. According to the survey the firming of rents has been underpinned by a reduction in the availability of rental properties on the market, which are now at the lowest level since October 2008.
Managing Director of HomeLet John Boyle welcomes the increase in rents which he hopes will increase yields and encourage more people to enter the buy-to-let sector as well as help alleviate the widely anticipated shortage in rental properties.
However he says increases in rent asking prices could also cause problems for landlords further down the line.
“If rental prices continue to increase owing to the decline in supply of both flats and houses in the marketplace, people looking to rent may not be able to afford to do so or may struggle to make their monthly rental payments,” said John.
“For that reason I’d advise landlords to make sure they know exactly who they’re letting their property to. Tenant referencing is a crucial area that is often neglected. Yet it can be the single most significant factor in protecting letting agents and landlords from tenants who can't or won't pay the rent.
“Even the best tenant on paper can fall on hard times, especially in the current financial climate. As a tax-deductible premium Rent Guarantee insurance therefore will guarantee you receive the rent you are expecting from your property regardless of your tenant’s personal circumstances or ability or willingness to pay the rent.”
Unfortunately rental arrears are still a real threat for many landlords. In 2009 HomeLet paid out £3 million in Rent Guarantee insurance claims compared to £2.8 million in 2008, which is an increase of over 7 per cent.
HomeLet’s Rent Guarantee policies, which are available through their approved letting agencies (of which there are around 3,000 nationwide), will cover the rent for either six or 12 months. They also include legal expenses to evict the tenant for non-payment of rent and depending on the policy can provide additional cover once vacant possession has been obtained and a new tenant is being found.
For more information please visit www.homeletuk.com
Tuesday, 23 March 2010
Homelet offers landlords chance to win £500 worth of B & Q vouchers.
HomeLet is offering landlords a chance to win £500 worth of B&Q vouchers.
To enter the prize draw for the the vouchers, landlords have to visit www.homelet.co.uk and enter their insurance renewal date.
HomeLet managing director, John Boyle, says: “In today’s tough economic climate, many landlords will welcome all the help they can get. As a landlord myself, I know that the cost of maintaining a property year in year out can take its toll."
HomeLet's latest product, Landlord’s Insurance+, offers a range of cover, including buildings insurance, contents insurance for furnished and unfurnished properties and Prestige Rent Guarantee, which covers rental payments and legal expenses for up to 12 months.
The prize draw will be made on July 1 and the winner's details will be revealed on HomeLet's blog site www.homeletuk.com/blog.
Wednesday, 17 March 2010
Leaseguard relaunches landlord insurance website
Specialist landlord insurance broker Leaseguard has relaunched it's landlord insurance website.
The website has been re-launched with a vibrant new look and new content to represent the Leaseguard Specialist Approach to Insurance and provide visitors to the site with up-to-date information about Leaseguard Products and Services.
When looking for Specialist Buy-to-Let Insurance or Tenant Referencing the new site offers clear and simple information, easily navigated pages, and has quotation forms for Landlords Insurance, Tenants Contents Insurance and Rent Guarantee which can be submitted to the Specialist Insurance Team who will respond with a quotation.
Talking about the revamp, Mairi Scott, Managing Director of Leaseguard, commented: ‘We are delighted with the new website which represents our Specialist, Professional and Personal Approach to Insurance and have taken into account the feedback we have had from current agents regarding our Online Referencing Service and worked to create a simpler and easier to use facility. As well as aligning the design of the site with our branding, we also wanted to up-date the content and functionality of the website to fulfil expectations of both existing and prospective clients alike.’
Visit the new website at www.leaseguard.co.uk.
The website has been re-launched with a vibrant new look and new content to represent the Leaseguard Specialist Approach to Insurance and provide visitors to the site with up-to-date information about Leaseguard Products and Services.
When looking for Specialist Buy-to-Let Insurance or Tenant Referencing the new site offers clear and simple information, easily navigated pages, and has quotation forms for Landlords Insurance, Tenants Contents Insurance and Rent Guarantee which can be submitted to the Specialist Insurance Team who will respond with a quotation.
Talking about the revamp, Mairi Scott, Managing Director of Leaseguard, commented: ‘We are delighted with the new website which represents our Specialist, Professional and Personal Approach to Insurance and have taken into account the feedback we have had from current agents regarding our Online Referencing Service and worked to create a simpler and easier to use facility. As well as aligning the design of the site with our branding, we also wanted to up-date the content and functionality of the website to fulfil expectations of both existing and prospective clients alike.’
Visit the new website at www.leaseguard.co.uk.
Saturday, 16 January 2010
Landlord insurance - landlords should aim to prevent burst pipes as big thaw
Landlords that are keen on avoiding have to claim on their landlords insurance policy because of leaks caused by a burst pipes should read the advice given by landlord insurance broker Hamilton Fraser.
Steve Barnes, Property and Claims Manager, said:
“Escaping water from burst pipes can cause considerable damage and inconvenience. By taking some simple precautions property owners can reduce the risk of a claim, and whilst much of it is common sense or indeed standard practice to the experienced landlord the following actions could make a difference!”
Hamilton Fraser has issued the following advice:
• Make sure you and your tenants know where your main stop tap is and check that it turns easily.
• Make sure pipes and tanks in your roof space are lagged. Where the loft has been insulated, less heat gets into the roof space and pipes can freeze more easily.
• In very cold weather, you could instruct your tenants to open the loft hatch to allow heat into the loft space. This will help prevent pipes from freezing.
• Advise tenants to keep doors between heated and unheated rooms open, and where possible, cupboard doors open below sinks to allow warm air to circulate.
• Seal any holes or gaps that may be letting cold air into your property.
• Check roofs, chimneys and gutters for unsafe tiles, cracks, leaks and blockages. Check that down pipes and supporting brackets are also secure. Clear drain gratings of leaves and debris to allow water to drain quickly as temperatures rise and the thaw begins.
• Make sure water supply to any external taps is turned off, drain down any water in the pipe and disconnect any hoses.
• If you or your tenant discovers a frozen pipe don’t wait for it to burst. Turn off the water supply and slowly thaw the affected pipe by introducing gentle heat to the area e.g. hair dryer, space heater, hot water bottle. DO NOT attempt to thaw the pipe with a blow torch or other open flame such as a cigarette lighter or matches.
If your property is unoccupied
• Keep the heating on a low constant heat or make sure the system and all of its components have been fully drained by a plumbing professional - or it will freeze.
• Check on your property as regularly as you possibly can. If you do have a burst pipe early identification of escaped water can help reduce the cost of the damage.
• Ensure you have complied with any un-occupancy conditions listed in your policy. Remember that, for example, regular inspections might be a condition of your insurance policy and failure to do so could affect settlement of your claim. If you have any questions regarding an un-occupied property call us on 0845 310 6300.
Emergency Action if disaster strikes
• Turn off the stop tap to prevent further flooding
• Block any escaping water with a towel
• Open all taps to reduce flooding and pressure on the system
• Turn off the source for hot water and central heating
• Can your tenant contact you in an emergency? If not you might consider providing your tenant with the number of a reputable contractor who could respond quickly and undertake emergency repairs to prevent further damage
• Contact us immediately to report your claim. Our advisers are ready to assist. Call 0845 310 6300 or report a claim on our website www.hamiltonfraser.co.uk
If customers need any advice or would like to report a claim they
can contact Hamilton Fraser on 0845 310 6300 or go to their website www.hamiltonfraser.co.uk.
Steve Barnes, Property and Claims Manager, said:
“Escaping water from burst pipes can cause considerable damage and inconvenience. By taking some simple precautions property owners can reduce the risk of a claim, and whilst much of it is common sense or indeed standard practice to the experienced landlord the following actions could make a difference!”
Hamilton Fraser has issued the following advice:
• Make sure you and your tenants know where your main stop tap is and check that it turns easily.
• Make sure pipes and tanks in your roof space are lagged. Where the loft has been insulated, less heat gets into the roof space and pipes can freeze more easily.
• In very cold weather, you could instruct your tenants to open the loft hatch to allow heat into the loft space. This will help prevent pipes from freezing.
• Advise tenants to keep doors between heated and unheated rooms open, and where possible, cupboard doors open below sinks to allow warm air to circulate.
• Seal any holes or gaps that may be letting cold air into your property.
• Check roofs, chimneys and gutters for unsafe tiles, cracks, leaks and blockages. Check that down pipes and supporting brackets are also secure. Clear drain gratings of leaves and debris to allow water to drain quickly as temperatures rise and the thaw begins.
• Make sure water supply to any external taps is turned off, drain down any water in the pipe and disconnect any hoses.
• If you or your tenant discovers a frozen pipe don’t wait for it to burst. Turn off the water supply and slowly thaw the affected pipe by introducing gentle heat to the area e.g. hair dryer, space heater, hot water bottle. DO NOT attempt to thaw the pipe with a blow torch or other open flame such as a cigarette lighter or matches.
If your property is unoccupied
• Keep the heating on a low constant heat or make sure the system and all of its components have been fully drained by a plumbing professional - or it will freeze.
• Check on your property as regularly as you possibly can. If you do have a burst pipe early identification of escaped water can help reduce the cost of the damage.
• Ensure you have complied with any un-occupancy conditions listed in your policy. Remember that, for example, regular inspections might be a condition of your insurance policy and failure to do so could affect settlement of your claim. If you have any questions regarding an un-occupied property call us on 0845 310 6300.
Emergency Action if disaster strikes
• Turn off the stop tap to prevent further flooding
• Block any escaping water with a towel
• Open all taps to reduce flooding and pressure on the system
• Turn off the source for hot water and central heating
• Can your tenant contact you in an emergency? If not you might consider providing your tenant with the number of a reputable contractor who could respond quickly and undertake emergency repairs to prevent further damage
• Contact us immediately to report your claim. Our advisers are ready to assist. Call 0845 310 6300 or report a claim on our website www.hamiltonfraser.co.uk
If customers need any advice or would like to report a claim they
can contact Hamilton Fraser on 0845 310 6300 or go to their website www.hamiltonfraser.co.uk.
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