LL Insurance

ANGLICANPAT

Ive checked out what I think are my requirements in taking out LL insurance (theres no mortgage) , and as its unfurnished , decided on Building Insurance, Liability Insurance, and Alternative accommodation Insurance as being essential .

Im unsure on whether I need accidental damage (only cheap carpeting in place) or legal cover .( Joined NLAfor advice) I dont depend on the rent so I dont need loss of rent cover .

I can imagine the Insurance company will try and sell me a whole package. Is that usually the best way to go -perhaps its generally not that much more ,or is it usually way over the top premium wise to what I actually need and just a sales con?


Thanks

poppysarah

Check what sort of tenant it covers you for.

ANGLICANPAT

Thanks , shes a non DHSS retired lady so Im presuming low risk.

dacouch

Carpets would not normally be covered by a solely Building Insurance as they are regarded as contents

ANGLICANPAT

Ill watch for that , thanks.

G_M

Some buildings policies include free £5K of contents cover - this is useful if you have white goods, curtains, carpets.

Shop around.

Look at how long they allow the property to be 'unoccupied' ie between tenants (25 days? 45? 60?). Also what they require you to do (visit weekly? daily? drain down the central heating? etc)

tenant type is not a matter of'high/low' risk - read the policy to see what catagory is excluded. Making a claim and saying 'but they were low risk' will not help if they fall outside the policy description.

I tend to think accidental damage to buildings is a con- but what if the tenant goes into the attic and puts a foot through the ceiling....? your choice!

As with all insurance, its a matter of preference and you must judge how likely YOU think each risk is, how crippling it would be if it happened, and what the extra premium would be to protect yourself.

ANGLICANPAT

Is it true that you need to insure yourself against having to find and pay for alternative accommodation for the tenant in the case of say ,infestation, fire, flood etc, where they have to move out for a period? Ive found posts that say you ARE responsible , and posts that say you are not . The EA is telling me just to make sure the tenant covers themselves for things like that ?

G_M

Most (all?) LLs policies will cover re-housing the tenants if the property is uninhabitable. But double check- it's just common sense. That and 'malicious damage' by tenants.

God - who is the EA? (no, no names). Or do you mean Letting Agent? To me, a statement like that is enough to make me question whether I trust, far less would employ, the agent!

ANGLICANPAT

The company is both EA and letting agency. Also , the insurance company Im getting a quote from told me the same thing , however thats probably because they dont have a landlord insurance policy available that includes that aspect of protection.

Im turning to this Ins co, first, to save getting a headache making endless phone calls, because the property has history which means only this company (because it was already insured with it at the problematic time) and specialist companies will take it on.

I thought it would probably be awkward/expensive using this insurance company with their basic LL policy , and then trying to get a stand alone one elsewhere just to cover having to provide alternative accomm for a tenant in an emergency -- hence why I was told about getting the tenant to make sure they have a policy that covers it . The Ins Co. said not all, but most insurance that tenants have, would, but I wouldnt know at this point .

It just seemed on the face of it an easy option for me, but of course Im investigating it first ,hence the question am I actually financially responsible at all .
(Only using the EA for tenant find so will be doing and checking out everything myself. )

dacouch

G_M wrote: »

I tend to think accidental damage to buildings is a con- but what if the tenant goes into the attic and puts a foot through the ceiling....? your choice!

If you understood the type of claims it covered for the relatively small extra premium eg circa 5% you may well change your mind.

The foot through the ceiling is a common example but does not really do A/D cover for buildings justice as it generally picks up claims not covered by the standard perils

Personally I always take it and recommend my clients do.