DEMAND FOR INSURANCE DOUBLES

Thanks to the launch of its new Tenants Contents Insurance + product and
increased demand, HomeLet has managed to double the number of policies sold
in just six months.

What’s more, since 2006 HomeLet has referenced over 1 million tenants,
proving it is still the market-leading provider of specialist insurance
products and services to the UK lettings industry.

In September 2009 HomeLet sold over double the amount of tenants contents
insurance policies when compared to January 2009, with an increase of 121
per cent.

This increase indicates that tenants, who have tended to overlook buying
tenants contents insurance in the past, are seeing renting as a more
long-term commitment rather than a temporary stop gap.

Also, since the onset of the recession and the resulting increase in the
cost of living and rise in unemployment, the number of burglaries has also
gone up. Tenants, who are feeling the pinch along with everyone else, have
become more aware of the value of their possessions and the cost of
replacing them.

landlord insurance - specialist products - discounted

In June HomeLet launched Tenants Contents Insurance + which is designed
specifically to protect tenants against the potential risks of renting a
property.

As well as being competitively priced, the new product still provides
specialist cover that protects the tenant’s deposit by providing cover for
accidental damage to the landlord’s contents, building, fixtures and
fittings up to the value of £2,500.

Tenants Contents Insurance + also covers the policyholder and two additional
tenants who are named on the tenancy agreement, as long as they’re employed,
self employed or retired. This means that one policy can cover three tenants
saving money and making it ideal for sharers.

HomeLet’s Managing Director John Boyle said: “HomeLet has been providing
tenants contents insurance for over a decade and we’re constantly improving
the products that we provide to our customers to ensure that we stay ahead
of the market.

“We are delighted to have achieved a 121 per cent increase between January
and September 2009 and this is testament to our commitment to providing
comprehensive cover at competitive prices.”

Landlord insurance broker offers FREE contents insurance for landlords

Mortgages are harder to get these days and there are an increasing number of people turning to the rental market for housing which is good news for landlords. However, landlords in the furnished sector often find it difficult to get contents cover for their properties. Now Adrian Flux's landlord division can include free contents cover with its landlord's building insurance to offer a comprehensive package.

"By including free contents cover with the buildings insurance we are able to offer landlords an extremely cost-effective policy," says Julie Carter of Flux. "It also cuts down on the paperwork and hassle for landlords when it comes to sorting insurance."

Flux's scheme offers landlords comprehensive cover for the building itself. The free contents insurance is designed for furniture and fittings that landlords supply with furnished lets, including beds, curtains, sofas and kitchen equipment, and some of Flux's policies offer cover up to £10,000 in value.

The free cover is only for the landlord's fixtures and fittings and is not designed to cover a tenant's personal property items.

Adrian Flux Insurance Services aims to offer cheaper property insurance and has a range of policies for landlords and buy to let, including specialist schemes for hard to insure properties such as thatched homes, flat roofs, underpinned buildings and those at risk of flooding. For information call the Flux household insurance hotline on 08700 772266, email household@adrianflux.co.uk or visit the website, www.adrianflux.co.uk, and click on the relevant button under the 'Home Insurance' section.

LOCAL HOUSING ALLOWANCE TENANTS CAUSE ARREARS CONCERNS

Landlords concerned about tenants claiming Local Housing Allowance and not paying their rent can protect their monthly income by taking out Rent Guarantee insurance.

Following reports that some landlords whose tenants claim housing benefit are finding it increasingly difficult to collect money that’s owed to them John Boyle, Managing Director of HomeLet, is encouraging landlords to seriously consider insurance.

In April 2008 the government changed the way it made payments to private landlords and instead of rent being paid directly to them to cover housing costs, it now goes straight to the tenant.

The Local Housing Allowance (LHA) was introduced so people could manage their own lives and their budgets.

However, according to research published by the National Landlords Association (NLA), a year after the new system was introduced many tenants are failing to pass on these payments to landlords which is causing major problems. In the most serious cases, landlords are facing repossession because rent money paid by the government to the tenant is never passed on to the landlord.

The research also reveals that 52 per cent of landlords surveyed have decided they would not let, or be less likely to let, to LHA tenants. A further 43 per cent of those landlords who have already tried the new system said they would now be leaving this failing market because of increased uncertainty about rent payments.

According to John, HomeLet can help mitigate the risks associated with renting a property to tenants who claim LHA.

“Under the current system landlords have to wait for eight weeks of rental arrears before the tenant is deemed unable to manage their own affairs and the rent is then paid to them directly,” he said.

“However, in reality it can be as long as three months before the landlord receives their first payment as the benefit is paid monthly in arrears. If the landlord chooses to try and reclaim the lost money, they must pursue the tenant privately through the courts.

“By letting their property through an approved HomeLet agent, landlords can safeguard their monthly income. HomeLet’s market-leading products and services cover rental payments for up to 12 months, should a tenant fall into arrears, and there are no restrictions on the types of tenants.*

“Our Prestige Rent Guarantee for example, not only covers non-payment of rent but any breach of tenancy and all legal costs incurred in evicting the tenant up to a maximum of £50,000. HomeLet also has a specialist in-house Legal and Claims team who will handle the entire eviction process from obtaining vacant procession to recovering costs for damage to the property.

“Landlords renting their properties to tenants claiming housing benefit no longer have to worry about not receiving their rent or not being able to meet their mortgage payments.”

Landlords Face High Risk of Flood - Landlord Insurance Concerns

Landlord insurance provider Direct Line for Business is giving landlords free advice on the problems of flooding, whilst carrying out research on the impacts of flooding on small businesses.

Results show that in three regions more than a fifth of the business people surveyed had been affected by issues from flooding in the last year.

The areas were the North -East, East Midlands and the worst hit Wales, with a rate of 23 per cent of respondents affected by floods.

The national average was 11 per cent of respondents had been affected by flooding.

"Flooding poses an increasing threat to all businesses and householders, as last year's storms and severe weather have demonstrated," observes spokesperson Kate Syred.

Our advice is that landlord should take the risk of flood seriously and make sure they are fully covered with whichever landlord insurance policy they take out.

Sainsburys offer landlords a discount on their landlord insurance

Sainsbury's is feeling so sorry for landlords that it is giving a discount of 20% on landlords home insurance, plus 3,000 Nectar points.

The retail giant that now is a major player in the insurance industry believes that poor old landlords have seen a collective drop in value on their portfolios of £118.4 billion over the past year.

The landlord insurance policy covers landlords against loss of rental income of up to £20,000 and contents cover of up to £40,000. It also offers unlimited buildings cover.

Sainsbury's Finance commented that landlords had been suffering real difficulties in the economic crisis.

£508 million in excessive property insurance premiums

Loyalty is not rewarded when it comes to property insurance.

Research shows that £508 million pounds a year are wasted by UK consumers who continue to pay excessive property insurance premiums.

By renewing their policies rather than shopping around for the best deal, home owners are throwing away an average of £180 each a year.

Read more in the Telegraph