Stepson living in my other house - what to do about insurance?

OverlandLandy

Hi All...an interesting dilemma......

I bought (on a Mortgage) a second home (Flat) so that I could save on hotel bills when working out of my companies main office (the company made no contribution to the flat).

My company got bought over and the head office moved - so I only spend 1-2 days at the flat now.

My step son and wife are now staying there as they could not get on the housing ladder and it meant that the place was occupied (it is a bit of win win). They previously looked after it for me and stopped a few nights a week. *so it was classed as a holiday home by my insurer)

I don't want to go down the tenancy route as it's family and I still still own the place and want to keep being able to stay without feeling awkward about things (if that makes sense).

He now pays me the money to cover the mortgage (I could afford to pay it myself but It's important that he sees it as not being 'FREE' and helps with adult fiscal responsibilities) and he pays the bills now. Its an interest only mortgage at a low rate as I have owned it for several years now and it was only ever going to be an investment and a way of saving on hotel/B&B bills. I make no profit from the flat.

I know someone will tell me to do a formal tenancy agreement but I live in Scotland and the Flat is in England and I appreciate the security of having them there. My bank has been informed and as it's family I do not need to convert into a BTL (just as well as the rates are much dearer these days!)

The question is how do I insure it? Its not a buy to let? But can I use BTL cover?

I'm sure some of you will have had this situation? Perhaps if you bought a place for your kids while they were studying at Uni?

Thanks all

InsideInsurance

Are you talking buildings content or both?

huckster

You just Insure it as a second/holiday home. As the property is not let under a shorthold tenancy and it is occupied by family, it is not technically a let property as such. Also if you occasionally use the property, that would be need to be considered.

I suspect that you are looking at the landlords Insurance thinking of protection for loss of rent. But you are not renting i.e there is no rental agreement.

What benefits do you perceive that a landlords policy would offer ?

OverlandLandy

InsideInsurance wrote: »

Are you talking buildings content or both?

Buildings only - I have nothing of real value there now.

OverlandLandy

huckster wrote: »

You just Insure it as a second/holiday home. As the property is not let under a shorthold tenancy and it is occupied by family, it is not technically a let property as such. Also if you occasionally use the property, that would be need to be considered.

I suspect that you are looking at the landlords Insurance thinking of protection for loss of rent. But you are not renting i.e there is no rental agreement.

What benefits do you perceive that a landlords policy would offer ?

My current insurers says that as it now 'lived in' as opposed to a 'holiday/second' home they will not insure me?