Property Insurance - April 2014

Posted on: April 7th, 2014 Category: Landlord News

Article by Luke Thompson, Personal Lines Department Manager at Simpson & Parsons (Insurance Consultants) Limited

The stormy weather conditions experienced in the opening months of 2014 have focused all property owners’ minds on just how they would react should the worst occur to their own rental properties. The North Lancashire and Cumbrian regions have escaped relatively unscathed this year for a welcome change. However, the images we have all witnessed on the National news will hopefully focus all our minds on just how we would cope should the worst occur.

The UK weather seems to becoming increasingly more unpredictable and unprecedented levels of rain, snow, wind and lasting cold temperatures over the past few years may become more frequent as time goes by. Therefore it is worth taking the time to ensure you have the adequate contingency plans in place and most importantly a sound, secure insurance policy to cover such instances, as the two can be closely linked.

Should a moderately serious claim ever occur, the potential upheaval is not only highly stressful and upsetting but the financial implications are also worth considering. Not only the cost of repairs, but the potential loss of rental income, costs of alternative accommodation and so on.

Therefore it is imperative the policy in place covering your property covers you for all the events you could reasonably expect it to, ensuring you are not left out of pocket, your tenants are still accommodated and the whole process is looked after and managed by some one you can trust in.

Key points to be aware of:

Un-occupancy

Many property owners make the mistake of not informing their insurers/intermediaries of property un-occupancy, be it in between tenants, renovations taking place or a new purchase. Any claims occurring when the property is unoccupied can invalidate a claim if the insurer is unaware.

Loss of rent

Many policies will cover up to a certain percentage of the sum insured for loss of rent should the property become uninhabitable due to an insured peril occurring. Take the time to ensure you have sufficient coverage for the required length of time.

Alternative accommodation

Ensure your policy will provide cover for the costs of temporarily housing your tenants should the property becoming uninhabitable due to an insured event such as a burst pipe or significant roof damage.

Legal Expenses & Rent Guarantee

Many insurers now offer this as an additional policy to the actual physical buildings insurance. In an increasingly litigious society it may be worth considering taking out the appropriate landlords legal expenses to ensure you have adequate cover in place to fight any potential legal issues in relation to the letting of your property. Some insurers now also offer a ‘Rent Guarantee’ policy to run along side this to ensure you have a guaranteed rental income should your tenants no longer be able to keep paying rent.

Malicious damage

Something you may expect to be covered as standard but is more often the exception than the norm. Once again in an increasingly changing world this can occur more frequently than you would anticipate. Ensure you policy provides the peace of mind.

Wear and tear not covered

Many clients wrongly assume that an insurance policy will just pay out regardless. An insurance policy covers a set number of out comes; such as fires, floods, escapes of water, it does not cover gradual ageing and deterioration.

Above all, dealing with someone you trust, whom will provide the correct advice and cover you require is above all importance.

At Simpson & Parsons Insurance Consultants Limted, you can be assured of honest, impartial advice, providing the levels of cover and service you require and expect at a competitive price. Ensuring that should the worst occur you can place your trust in us to ensure we will deal with all matters promptly and efficiently to ensure you don’t have to worry.