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Posts Tagged: Landlord Insurance

Number Of Landlords Falls

According to the Countrywide PLC Monthly Lettings Index that was produced for August 2017 the number of landlords here in the UK has gone down by a significant number. In fact, the reduction is 154,000 since 2015. However it is interesting that the number of rented homes has gone up by 171,000. On that basis, this would indicate that a lower number of landlords are renting out more residential properties. In fact, on average a landlord is now renting out 1.44 residential properties whereas back in 2010 the figure was 1.24 homes. This is a significant difference. Between 2007 and 2017 there has been a 33% rise in the number of landlords who are the owners of 10 or more investment residential properties. It is also interesting that back in 2010, 86% of landlords owned just the one investment residential property whereas this year the figure had dropped to 73%. Rental income increased by an average of 1.6% to £954 per calendar month in Great Britain when comparing August of this year with August 2016. It was the South West that saw the largest increase in rental income between the above period with rents rising by an average of 4.7%….

Why Is Home Insurance Not Suitable To Cover Rental Properties?

If you are a landlord and own a property that you let out to tenants then you will no doubt wish to make sure that you have adequate insurance in place to cover the likes of the building, fixtures and fittings and contents. A standard home insurance policy that is arranged to cover a residential property is not suitable for rental properties as there are a number of specialist risks that you may want to insure relating to your rental property. For instance, if one of your tenants was injured in the property that he or she is renting from you perhaps due to say a gas explosion then they may try to sue you for damages. Landlords insurance should cover such a situation. In the event that the tenant is unable to maintain their rental payments then landlord insurance would often provide the option of providing some form of rental guarantee scheme. This would at least provide some financial support towards paying bills and may be of particular benefit if the investment property has been purchased with the assistance of a buy-to-let mortgage. Should there be the need to call out the likes of a plumber or electrician in…

Would Your Tenant Tell You If They Damaged The Property?

One of the potential problems with letting out a property is if a tenant damages the property or the fittings or contents. One would hope that your tenant would own up to having caused the damage. Hopefully, your property will not be damaged but, if it does, you will no doubt have suitable landlord insurance in place to cover such eventualities. Well, a survey carried out by YouGov for The House Shop provides some interesting information about the damage to properties that are rented out caused by tenants. It is concerning to hear that 27% of tenants would not inform their landlord if they damaged the property in a major way. That is a very high figure and disappointing to hear about. Of those, 1% would do what they could to hide any damage, 11% would do their own repair work and 15% would use the services of a tradesperson to carry out the repair work. Apparently, 58% of tenants would inform their landlord about the damage to the property. Of those, 27% would wait to be asked if they had to meet any of the repair costs, 7% of tenants would actually make an offer of contributing towards the…

Cost vs Quality Of Cover

If you are a landlord, either experienced or new to the rentals property market, then one of the things that you will no doubt wish to make sure is in place is that you have suitable landlord insurance. It probably does not come as a surprise to read that there are numerous providers of such cover so what is important to you when deciding whom to arrange your landlord insurance with? Well, there will be many people who are driven by cost who are looking for the cheapest cover possible as they are on a very tight budget. There will be others who are not concerned about the cost who want a policy that provides fantastic cover. Because there are an awful lot of insurance companies that provide landlord insurance who are probably competing with each other this surely should only prove beneficial to the landlord looking for such cover. Some of the insurance companies may decide to compete on price and/or the level of cover offered. Surely it is important that the landlord insurance policy that you arrange, as a minimum, provides you with the level of cover that meets your requirements to provide you with peace of mind….

Should You Pay Monthly Or Annually For Your Cover?

If you are looking to arrange landlord insurance to cover your investment property then one of the decisions that you will need to make is whether to spread the annual cost on a monthly basis or pay for the total amount all in one go as a single premium when arranging the cover. So, let us have a look at some of the pros and cons of both options. If you pay for the cover on a monthly basis then this may assist your cash flow at a time when you may have additional things to buy if you have just purchased your investment property to let out to a tenant. Many people find it easier to pay monthly rather than annually as they don’t have to worry about making sure that the funds are their to meet the annual premium all in one go whereas it may be easier to have the funds available each month. A downside of deciding to pay for your landlord insurance on a monthly basis is that it is quite likely that the insurance company will charge you interest taking into account the cost of the cover as, to all intents and purposes, you…

Is Your Investment Property Covered For Floods?

In recent weeks, many properties in certain parts of the UK have suffered damage due to serious flooding. So, if you are a landlord, does your landlord insurance cover you for such an event? Insurance companies providing landlords insurance usually include cover should the building me damaged as a result of flooding such as a river bursting its banks. However, you should check the policy wording to confirm if this is the case. If the landlord has provided contents in the property that is let out such as furnishings and white goods then, as long as the landlord has arranged contents cover, those items would also normally be covered in the event of flood damage. Again, the policy should be checked to confirm if this is the case. Of course, the damage caused by a flood could be so severe that the tenant has to move out of the property into alternative accommodation. Some insurers may provide cover to pay for alternative accommodation although the landlord would need to check if, under the terms of the rental agreement, they are obliged to pay for such accommodation. If the tenant vacates the property due to flood damage and the landlord is…

Is It Worth Including Legal Expenses Cover?

If you are a landlord then you will no doubt have arranged suitable landlords insurance to protect a variety of risks such as your investment property being destroyed in a fire or being damaged due to a flood. There are a number of optional extras with such policies with one of those often being legal expenses cover. So, let’s have a look at some of the things that the legal expenses option may cover you for: – Recovering rent arrears Many landlords are faced with one or more tenants falling behind in paying their rent and, in many instances, the landlord or the letting agent is able to resolve the matter with the tenant to the satisfaction of all parties. That may be to clear the rent arrears in one lump sum or over a period of time say on a monthly basis. However, there may be an occasion when the tenant is less than co-operative resulting in you having to take legal action. The involvement of a solicitor can make such a positive difference in getting the tenant to pay the arrears. It may only require the solicitor to write a letter but it could also involve action being…

5 Of The Things To Bear In Mind Before Becoming A Landlord

If you are considering setting up in business as a landlord then there are a number of things that you will need to consider. Below we highlight five of them: – Type of Tenant You will need to decide the type of tenant that you would like to rent to as this will affect the sort of property that you wish to purchase to let out. For instance, do you wish to rent to a single person, a couple, students or a family? Do you prefer to let the property to a professional high-income earning individual or to someone that has been unemployed and on benefits for many years? Will you allow pets in the property or not? If you are going to rent to a single professional person then you may wish to consider buying a one-bedroomed apartment. However, if you wish to let a property to a family then you may wish to purchase a three or four bedroomed house with a reasonable sized garden. Location If you are going to rent to students then the property will need to be within reasonable travelling distance of the university. If you intend to let to a professional couple then…

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