Advice re: Landlord Insurance please

new2allthis

Hi

I have a flat that I started letting out earlier this year.

I never intended to become a landlord, but it was the best way of being able to purchase and move to a bigger property.

I fully intended to get landlord insurance at the time but, for various reasons, never managed to do so at the time. Since then, I've attempted to sort it out several times but find the process completely mystifying.

All advice welcomed please.

The flat is let on an unfurnished basis. Buildings insurance is covered through the block policy that covers all the flats. I have a letting agent who manages most things for me.

I don't have employees but, clearly, from time to time, people will need to access the flat to service the boiler, do the gas safety check, any repairs etc plus the agent visits every so often to check how the tenant is keeping the property. So, I take it that I need to include employer's liability cover, right? If so, what level of cover should I get?

What other things should I ensure are included - especially if they might not be part of standard policies? What are the things that are obvious to experienced landlords, but which might not occur to a newbie like me? I would rather not find out the hard way!

Any advice on good insurers / brokers / comparison sites that know their stuff when it comes to landlord insurance?

Help!

Many thanks

AJ

tlc678910

You need to sort this out straight away. Simply phone a company and ask for a quote - it's really not much more involved than ordinary home insurance. They'll ask you a few basic questions, they'll ask if you would like to include this and that, level of cover options job done.

You are not an employer of tradesman (your question above) and don't need employers insurance. The landlord insurance can/will(?) include public liability for if you are sued by someone being injured by your property.

Just phone up and let the representative guide you through the questions and your insurance options.

Additional things that would need to be covered include providing the tenant with accommodation if your flat was uninhabitable e.g. flooded or burned down but the insurance will talk you through it.
Tlc

Pixie5740

Is there anything else you might have forgotten to do that could come back and bite you on the bum?

G_M put together a guide for Tenancies in Eng/Wales: Guides for landlords and tenants which has a section specifically for New Landlords too.

G_M

new2allthis wrote: »

The flat is let on an unfurnished basis. Buildings insurance is covered through the block policy that covers all the flats. I have a letting agent who manages most things for me.



AJ

What does the existing policy cover? You have asked for a copy of the policy document and read it yes?

Does the freeholder/management company know you are letting? And is letting permitted?

Or is this why you have decided not to look at the existing policy - for fear of the freeholder finding out.........?

See also:

Tenancies in Eng/Wales: Guides for landlords and tenants

new2allthis

While I thank contributors for their advice, it is a shame that some people are so judgmental on here. Why jump to (incorrect) conclusions about facts not in evidence?

The leaseholders own the freehold. The property developer went bust years ago – long before I bought the flat. We have a residents association instead which runs the management company that the freeholders set up (and which is registered with Companies House). My neighbour to the side runs the association and both she and the owners of the flat below mine are fully cognisant of the situation, as is my mortgage provider whose interest is registered against the flat with Land Registry. I am familiar with the buildings insurance, and my mortgage provider’s interest is registered with that insurer too.

Helpful comments about landlord insurance specifically, please. While it's definitely advisable to have, it's not a legal requirement to have it so I'm not in breach of anything. But I have always been keen to get it and, hence, yet another attempt at trying to fathom where, how, what etc. I don’t need buildings insurance cover – unless people think otherwise – but cover for things like carpets, fixed things like kitchen/bathroom units, tenant damage etc. I have a separate rent guarantee thingy that I took out on the advice of the letting agent, who also suggested I should consider landlord insurance but said they couldn’t help beyond that.

tlc678910 - I cannot make or receive calls during weekdays and have a poor signal at home. Besides, I prefer to check things out online first, as I take in information much better that way. Then, I would phone if I had questions. But, I can't even get that far. You say phone the company - ok, any suggestions as to which one to try? Not all seem to do it, and I don't have time to trawl the entire market, one insurer at a time. Is there a comparison site for landlord insurance like there is for buildings/contents insurance? That would be so much easier. I may not get the absolute best deal, but I could see what different things are available, automatically included (or not) etc. That would make me aware of cover that I hadn’t considered before but that could be useful to have. I would rather learn what I don’t know that way, than the hard way.

Pixie5740 – thanks for the link. I’d read it previously, but a while before the tenant actually moved in. Very useful reminder and a great reference resource! Have bookmarked it now so I don’t forget about it again. I will definitely try to find a landlords association.

Thanks everyone.

AJ

new2allthis

tlc678910 – apologies, I forgot to thank you for the advice about getting cover that provides the tenant with accommodation if the flat were to become uninhabitable. A good tip that I hadn’t thought of. This is the kind of thing I’m likely to miss, not having been a landlord before.

AJ

HappyMJ

Building insurance covers fixtures and fittings.

If your tenant accidentally burns the kitchen down the buildings insurance will replace it and they'll change the carpet too.

If the tenant damages something you ask the tenant to pay to fix it.

Landlord insurance will pay you to rehouse your tenant whilst the work is being carried out. Although the tenant will still pay you rent the alternative accommodation you provide might cost more than you get in rent. If the tenant would rather leave the policy will cover you for lost rent instead whilst the work is being carried out. I would hazard a guess that your rent guarantee policy may even be sufficient.

Landlord insurance really is just a package of lots of different insurance products.

G_M

As suggested already:

What does the existing policy cover? You have asked for a copy of the policy document and read it yes?

new2allthis wrote: »

I don’t need buildings insurance cover – unless people think otherwise – but cover for things like carpets,
If fitted these would usually be covered by the building insurance. Read it to check.
I loose rugs, you need contents insurance
fixed things like kitchen/bathroom units,
If fitted these would usually be covered by the building insurance. Read it to check.
tenant damage etc.
To what? If fitted these would usually be covered by the building insurance. Read it to check. May need 'accidental damage', but tere again, this may already be covered by the building insurance. Read it to check.
I have a separate rent guarantee thingy that I took out on the advice of the letting agent,
Usually a waste of money - do you know what it covers? More importantly, do you know what the conditions and exclusions are?
who also suggested I should consider landlord insurance but said they couldn’t help beyond that.

Pixie5740 – thanks for the link. I’d read it previously, but a while before the tenant actually moved in. Very useful reminder and a great reference resource! Have bookmarked it now so I don’t forget about it again.
I too thank pixie for linking that post, but you might consider thanking the author of that "great reference resource" too........

I will definitely try to find a landlords association.
provided in the link above.

Thanks everyone.

AJ

About the only 2 things I can think of you might need to consider (subject to whatever existing policy is in place) are

* alternative acomodation for tenants if property becomes uninhabitable
* contents insurance (for your rugs, curtains? etc)
* malicious damage by tenants

ooops - bad maths.

silvercar

Any advice on good insurers / brokers / comparison sites that know their stuff when it comes to landlord insurance?

alan boswell.

simply business.

direct line for landlords.

[Deleted User]

new2allthis wrote: »

Hi
Buildings insurance is covered through the block policy that covers all the flats.
AJ

When you check your buildings insurance, check that it still covers everything when the flat is let out. Mine for example only covers accidental damage to fixtures by homeowner, not tenants.

tlc678910

Hi
We insured with Liverpool Victoria Insurance. This was because they were the underwriters for Nationwide buy to let insurance and we had our mortgage with the Nationwide so we figured our mortgage provider was not likely to be unhappy with the insurance in place if it was their own associated insurance. (If you see what I mean). The policy is called "Buy to let and property owners" on the document. The telephone number on my document is Commercial Insurance: 0845 640 5945

We did not shop around (shock horror) so I'm afraid I don't know about any comparison sites or other companies but I'm sure searching for recommended buy to let insurers will yield others experiences.

We paid £262.96 in 2014 to insure a 2 bed terrace (Cornwall) (insuring the building as well as it's freehold).

As indicated in your initial question liability cover is an important aspect of your cover. Although you mention the insurance is not compulsory (which I didn't know) imagine if the worst happened and a tradesman or tenant became seriously injured or lost their life (electrocuted, carbon monoxide or whatever) you could be sued for everything you have in the world so this is the reason I would urge you to get your cover in place immediately.

The representative really will talk you through the policy (if you are able to sort out getting a quote by phone) just like when you buy car or home insurance so I don't think it's so much a question of what to include but more what level of cover e.g. You might have to choose 100k of liability or 500K etc and pay accordingly. (Perhaps ask them to quote for different levels and go for the best you can afford?) The only decision I remember off the top of my head was did we want cover for a terrorist attack! I didn't think our house was the most likely terrorist target but I think it was such a pittance extra that I just said yes.

It didn't apply to us but they did ask if we would be letting via housing benefit I think. Not sure the implications of this but perhaps it costs more or some insurers don't do it - I don't know?

I don't mean to patronise you but just in case it is helpful a law has been recently introduced that as a landlord you must provide a smoke alarm (on each floor if relevant) and carbon monoxide alarms for gas appliances.

(PLEASE IGNORE as I see you have a gas safety cert in your post but I'll leave it in in case it helps anyone else who wants to let) You also need a gas safety certificate each year, compulsory (if you have gas obviously and an electrical certificate is recommended (not compulsory I don't think but you are obliged to provide safe electrics so it helps to evidence this)

Tlc