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  • FIRST POST
    • JimmyDeemo
    • By JimmyDeemo 2nd Oct 17, 9:14 PM
    • 45Posts
    • 3Thanks
    JimmyDeemo
    Landlord insurance application, what is my legal trading status?
    • #1
    • 2nd Oct 17, 9:14 PM
    Landlord insurance application, what is my legal trading status? 2nd Oct 17 at 9:14 PM
    I am in the process of applying for Landlord Insurance with Churchill, and their website words a lot of sections as if targeted towards a business. One question that has stumped me is a mandatory field with the question 'What is your legal trading status?'.

    As far as I know I don't have one. I am a private landlord with a single property and I fill out a self assessment as required. I haven't set up any sort of business. Therefore I selected 'Property Owner' for the question 'What is the main trade or profession that you and your business undertake?' and continued with the application. Then further down I am asked the question in the initial paragraph.

    Is it simply that I can't use Churchill for this purpose? They had the best price when I compared and I'd like to complete the application online due to being able to earn Quidco cashback.

    Any thoughts much appreciated. Entry site here for those who want to have a look at the form; https://www.churchill.com/landlord-insurance.
Page 1
    • Kynthia
    • By Kynthia 3rd Oct 17, 12:44 AM
    • 5,042 Posts
    • 7,022 Thanks
    Kynthia
    • #2
    • 3rd Oct 17, 12:44 AM
    • #2
    • 3rd Oct 17, 12:44 AM
    Technically letting property is a business activity. There are regulations to abide by and income to declare for tax purposes. So that is probably why that part of the website is geared towards selling a product to a business. As you aren't a company or partnership then Sole Proprietor seems to be the best fit as in a way you are like a sole trader, apart from the fact that letting property doesn't count as being self employed and the profit doesn't meet the HMRC status of 'earned' income (e.g. when calculating maximum annual pension contribution limit).
    Don't listen to me, I'm no expert!
    • ashburnham
    • By ashburnham 3rd Oct 17, 11:17 AM
    • 37 Posts
    • 10 Thanks
    ashburnham
    • #3
    • 3rd Oct 17, 11:17 AM
    • #3
    • 3rd Oct 17, 11:17 AM
    A private landlord is a "Sole Proprietor" in this instance. As mentioned, letting a property is a business activity but you are dealing with all parts of the letting under your own name (i.e. not a trading name and not a company name) so you are therefore classed as a sole proprietor.

    Please note that if the property and lettings are handled in joint names (e.g. joint with your spouse) then this would be classed as a partnership and it is recommended to have both names on the insurance too.
    • JimmyDeemo
    • By JimmyDeemo 4th Oct 17, 9:06 PM
    • 45 Posts
    • 3 Thanks
    JimmyDeemo
    • #4
    • 4th Oct 17, 9:06 PM
    • #4
    • 4th Oct 17, 9:06 PM
    Many thanks.

    I went with Sole Proprietor as suggested and it all went through OK.
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