PLEASE READ BEFORE POSTING
Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.We'd like to remind Forumites to please avoid political debate on the Forum. This is to keep it a safe and useful space for MoneySaving discussions. Threads that are - or become - political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
Insurance if occupancy situation changes
Laurence_WMF
Posts: 146 Forumite
Before I take out insurance on a property as a landlord I would like to know what should happen if the occupancy situation changed, to residential or unoccupied, some time after an occupied rental policy had been subscribed to.
Would my existing policy be altered, with either money refunded or extra paid, or would I forfeit the rest of the year's payment for the initial policy and have to find a new one?
Many thanks,
Laurence
Would my existing policy be altered, with either money refunded or extra paid, or would I forfeit the rest of the year's payment for the initial policy and have to find a new one?
Many thanks,
Laurence
0
Comments
-
Or to put it differently: shoud I take out insurance for tenanted or unoccupied when I am hoping the property will be rented out shortly but can't be certain of this (it's not in an area with very high rental demand, and its a bad time of year for the rental market).
Thanks,
Laurence0 -
You need to take out Landlord insurance for the property which will be a condition of any loan/mortgage on the place.
If it is empty you should check it every week/fortnight
With the huge demand for rental properties if it is not rented soon drop the price0 -
Thanks dimbo61. The insurance brokers I spoke to asked about expectation of occupancy. Yes I am prepared to drop the price to get quick occupancy.
I'm not taking out amortgage on the property.
I'd still be interested to know what happens if the worse comes to the worse and the property isn't occupied. How long beofre this invalidates landlords' insurance, normally. Are some policies stricter than others on this? If so, can anyone recommend a less strict one?
Thanks,
Laurence0 -
You will be asked when you take out the policy whether it is currently occupied, so if you want the policy to be valid you'll have to tell them that it's not. If it is occupied when you take out the policy then I think there is usually a provision for something like a month or so unoccupied before the policy would be invalid.
There are some unoccupied policies available for 1-3 months rather than the full year, but the premiums tend to be high, from what I have seen.
Some policies will allow a certain percentage refund if the property is occupied within about 3 months (the percentage decreasing every month), but beyond that you'll effectively pay the full year's premium even if you get the property occupied and change the policy.
Also remember than many, if not all, LLs policies on unoccupied properties only cover things like fire, lightning, earthquake, explosion and aircraft collision (FLEEA), so won't cover the things you're probably more worried about such as break-ins, theft or flood. So you need to balance the risk of any of those things actually happening against the considerable increase in premium for an unoccupied property.0 -
You are now running a business so speak to local letting agents to find out the local markets.
Are you looking at a family ( perhaps unfurnished )
Students/young professionals then you need fully furnished and locks on doors, andke alarms, HMO ?
Price is important but setting it up right to look good for photos and adverts on gumtree and rightmove0 -
Thanks again dimbo and thanks especially sandsni - that's exactly the information i was seeking.
Laurence0 -
PSThere are some unoccupied policies available for 1-3 months rather than the full year, but the premiums tend to be high, from what I have seen.
Some policies will allow a certain percentage refund if the property is occupied within about 3 months.
Can you or anyone else point me to any such policies?
Thanks a lot again,
Laurence0 -
I'm in NI, so the companies providing LL insurance here are probably different to those in the rest of the UK, but I thought I'd give you a bump in the hope someone else can help.
Have you joined a LLs' association? Sometimes there are discounts available through these organisations and they can provide a lot of very useful help and advice.0 -
Thanks again, Sandsni, you're a star.
This is actually the first I've heard of Landlord's Associations. I'd be interested to hear more.
What have other landlords out there done in this situation? Surely it must be common to buy a house to let, need insurance from the start but not have a tenant moving in on first day of ownership? Do most just take out a policy for occupied tenanted, trusting that it will be occupied quickly and no one will discover slight deception of taking out policy when it was actually unoccupied?0 -
I had to take out Insurance weeks before completion with Endsleigh but I have students.
Property was empty for 8/10 weeks while having work done but builders there most days.
If you type in Landlords Insurance in google it will come up with dozens of companies or try comparison website with Mercats, fat opera singers etc0
This discussion has been closed.
Categories
- All Categories
- 346.6K Banking & Borrowing
- 251.3K Reduce Debt & Boost Income
- 451.4K Spending & Discounts
- 238.8K Work, Benefits & Business
- 614.2K Mortgages, Homes & Bills
- 174.8K Life & Family
- 252K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 15.1K Coronavirus Support Boards