Accidental landlords and first time entrants into the property rental market are being warned about the dangers of not having the correct type of landlord insurance.
The warning comes after the continued financial downturn sees many people reluctantly become landlords when they can no longer afford to live in their own home and can’t manage to sell it. David Lawrenson works for a leading online letting agent and says many people coming into the rental sector look to keep their overheads to a minimum and don’t think long enough about the insurance they require. He said: “A general property insurance policy simply does not cut the mustard. It doesn’t cover all of the risks that would apply when you’re letting out a property. It is important to make sure that landlords have the correct level of cover. In most cases buy-to-let insurance is not much more expensive anyway.”
Of course the fact of the matter is that in many cases having the wrong type of insurance or not buying enough cover of the correct type of insurance is a complete waste of money. The homeowner will find that the insurance policy will be invalid and will be unable to claim at all. Proposed changes to the rules and regulations governing the private housing sector have been discussed in the last few days by Communities Minister Grant Shapps which would impose even more regulation on landlords. However, landlord organisations see this as a good thing as it may make the sector take a more professional outlook. Regulations concerning fire and other health and safety issues may be tightened and in return the obligations on tenants to respect a landlord’s property ensconced in law. In the meantime landlords across the UK must ensure they not only have the correct type of insurance to protect themselves and their business but also their tenant.