Landlord insurance or Building Insurance

I've just finished renovating a small house next to ours for my Mother to move in to. It's a small 1-bedroom, fully self contained end terrace house where she can remain independant and live comfortably and we can provide care and support. The house will remain ours but she will live rent free and she will just have responsibility for utilities, council tax and any other running costs for the house.

I'm not sure what we do about insurance? How do we cover buildings and contents? Am I a "landlord" even though we're not in that business at all?

Any advice or pointers welcome.

Thanks

Comments

  • HappyMJ
    HappyMJ Posts: 21,115
    Combo Breaker First Post
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    PastyMan wrote: »
    I've just finished renovating a small house next to ours for my Mother to move in to. It's a small 1-bedroom, fully self contained end terrace house where she can remain independant and live comfortably and we can provide care and support. The house will remain ours but she will live rent free and she will just have responsibility for utilities, council tax and any other running costs for the house.

    I'm not sure what we do about insurance? How do we cover buildings and contents? Am I a "landlord" even though we're not in that business at all?

    Any advice or pointers welcome.

    Thanks
    You really must speak to a broker as your requirements are very different to a normal policy.

    You can't insure your mother's contents...that's up to her to get her own policy. You can pay it...but the policy has to be in your mother's name.

    You can get Buildings insurance on a property you don't live in. You don't need the Landlord elements of Landlord insurance....i.e unpaid rent and possession costs for those rent arrears, etc...

    Yes you're a landlord. You're not getting rent but you still need to keep the property in good repair.
    :footie:
    :p Regular savers earn 6% interest (HSBC, First Direct, M&S) :p Loans cost 2.9% per year (Nationwide) = FREE money. :p
  • Best speak with a broker, some insurance companies on line are so restrictive around the terms and conditions you may find your not covered when it comes to a claim and that is too late.


    I use Alan Boswell Group and always found them good
  • caliew
    caliew Posts: 73 Forumite
    Hi I have been in the insurance industry for 5 years, I have just left due to childcare reasons. Is there a formally tenancy arrangement in writing? Most underwriters like a tenancy arrangement in place. Are you on the title deeds of building? If you are on the title deeds it will be your private policy for the buildings and if your mum sources her own contents that can be done due to your mums financial interest on the bills. As you mentioned its self contained does it have it's own lockable entrance or a communal entrance? If communal entrance you may need a specialist broker.
  • Quite a lot of the standard home insurance policies we sell at our brokerage actually allow the owner (you) to let a direct family member reside in the property (your mother in this case) even though you live elsewhere.

    Ignore online quote forms as these might not give you exactly what you need. Get in contact with some home insurance brokers and I'm sure they can provide the buildings insurance you need.

    P.S. you may be told by some brokers that you need landlord insurance. It is also possible to get this cover but you would then need to "officially" let the property and draw up a lease agreement and have appropriate landlord checks on the property. The easier/cheaper route is to keep trying different home insurance providers until you find one that will give you the buildings cover that you need.
  • Thanks folks for replying so far on this thread. I'll let it run for a wee while longer for any other advice.

    Just for clarification on questions asked.

    - The house deeds are in my (and my wife's) names.
    - There is no written tenancy agreement and I don't really want to get into renting. My Mum is in the house for the rest of her days and then either my wife and I would downsize to move in or our son would move in depending on circumstances at the time.
    - The property is completely self contained with its own lockable entrance, separate utilities/council tax
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