A claim made by a private landlord has highlighted the importance of landlord insurance. The landlord put in the claim for £400,000 after a fire broke out in a block of flats. However, the landlord in question is out of pocket by £100,000 after realising that he had been under-insuring the property for years.
The high profile of the case has seen a number of private landlords seeking professional advice on the actual cost of rebuilding their properties. Fires are quite common in a rented property with just a handful of causes usually being to blame. Over the past two years, around 20% of all fire claims settled by landlord insurance are the result of kitchen fires, 10% due to smoking and a further 5% caused by burning candles which were too close to the curtains. The remainder related to electrical faults.
Eddie Hooker, an insurance specialist, said “This is a particularly extreme and unusual case but it does highlight the importance of ensuring that your insurance policy is sufficient to cover the full value of rebuilding the property. In the current financial climate, it is more crucial to look at the levels of cover rather than the bottom line premium. Prevention of risk is as important as having the correct insurance. Landlords, especially those new to the sector, need to understand the correct fire safety provisions including fire exits and wired in smoke detectors, ensure that their tenants understand their obligations and write fire precaution clauses into the tenancy agreement.”
New research from the Gas Safe Register show that 91% of gas works investigated in the last year fell short of the minimum safety standards, with 20% posing an immediate risk. The figures have been released to mark Gas Safety Week which hopes to highlight the importance of having proper gas safety in the homes of all privately rented accommodation. There was also evidence found that gas jobs were being carried out by illegal gas workers.