So how do you make sure you have the right cover for your property?
Below is a 10 point checklist of some of the covers that you should look for when choosing a provider:
- Property Owners Liability - Most policies have an option to extend cover to £5 million and beyond, however look for those providers who include this level of cover free of charge. It’s worth checking in our ever more litigious society.
- Accidental damage cover – Again, this cover with lots of providers now comes free with the buildings, so do check you have this extension.
- Loss or rent – Loss of rent historically was set for most providers at around 20% of the sum insured. However lots of providers will now cover up to 30% and beyond of the sum insured which is good news with the costs of rents in the UK rising due to the steady increase in demand for rental properties.
- Alternative accommodation – Some polices don’t include this cover, other polices include the cover but share the aggregate cover (the total indemnity) with the ‘loss of rent’ sum insured as a combined pot for both covers. The ideal policy will provide separate thresholds of cover, around 30% of the sum insured for this section also, providing significantly more cover should the house become uninhabitable as the result of an insured peril.
- Trace and access – Always look for a policy that provides this cover, but always check the indemnity level is sufficient for your needs. Some policies cap the indemnity at £5000, others a lot higher with a small few offering unlimited indemnity for the trace and repair of underground services to the property.
- Employer’s liability – This cover is more geared to those property owners with a portfolio. It’s a legal requirement that if you employ someone within the UK that you must have employer’s liability insurance in force. If you have a maintenance man or cleaner employed as an example this cover will ensure you’re not breaking the law and can come free with some policies. Buying this cover separately can be expensive compared to the property owner’s premium.
- Legal expenses – With more and more polices including this free of charge it is a great extension to have. Buying this standalone can cost around £30-50 depending on provider and levels of cover. Check the extension includes, property disputes, eviction of squatters and recovery of rent as these tend to be the most common problems.
- Malicious Damage by the tenants – Some polices do not cover this at any premium, the more comprehensive polices will include this cover up to the indemnity of the sum insured but most tend to limit cover to £5000.
- Subsidence – Check your policy includes this cover, some of the ‘direct’ writers do not include this cover as standard, and instead you have to buy this as an 'add on' to a residential property owner’s policy which is very unusual. Do check this is covered with the average excess around £1000.
- Replacement - Loss of Keys – Check this is included in your policy, some don’t. The normal limit of indemnity is around £500 which should cover most people’s costs to replace the locks on your property.
The above is not an exhaustive list, particularly if you have commercial proprieties, but does provide a starting point for those landlords looking for insurance or an idea of what covers to compare against their current provider.
This post was written by Maya Sharma for Compare Crazy. For the best price on Landlord Insurance visit http://www.comparecrazy.com