What to Expect from Block of Flats Insurance

Block of flats can be insured differently than normal properties. If you own or manage an apartment block, regular buildings insurance policies will not provide the satisfactory level of cover you need to protect your investment.

Block of flats insurance is a type of insurance meant for larger properties that contain multiple rental properties. This flexible insurance policy type can even be used in homes that were converted into flats. Management companies, leaseholders or freeholders can take out block of flats insurance to provide exceptional cover at a lower rate.

Specifically designed for apartments or a block of flats, this cover can include:

  • Liability: Meant for the property owner. Liability that is 5 million pounds is not uncommon and will protect the owner of the property from liability.
  • Loss of Rent: One of the biggest losses of money for a landlord. When a property is void, loss of rent occurs, eating into potential profits. Loss of rent will provide monetary relief during times when tenants are not actively letting a property.
  • Alternative Accommodation: What happens if a fire breaks out and ruins a tenant’s room? Oftentimes, landlords will need to find an accommodation for the tenant while the home is repaired. This is what alternative accommodation will cover.
  • Loss or Damage of Property: Theft, natural disasters and fire causes landlords to lose billions of pounds per year. Proper cover for these items is provided.

These are the basics that may be covered under one policy. Liability amounts are often high to ensure that a landlord and all of his or her properties have more than enough cover.

There are also a few questions you’ll want to ask your insurance provider. Every policy has exclusions, and knowing what exclusions or limitations your insurance has is key to properly covering your investment. Common exclusions include:

  • Restrictions on certain cover when a property is unoccupied.
  • The cost of replacing undamaged items.
  • Loss of a building that is not listed within a policy.
  • Damage caused by negligence, or a design or manufacturer fault.
  • The number of properties that can be insured under one policy.

Some insurance policies will include all of the above, but many will have restrictions in place. The good news is that optional insurance cover may be able to be sought so that you can have the cover you need in the event an exclusion criteria is met.

Customized policies are also provided. These are policies that will change due to the amount of properties in your block. If an entire apartment block is being covered, the insurance policy limits will need to be altered to best protect you – the landlord. It’s important to be open and honest with an insurance provider at all times.

Properties that are not listed on the policy will not be covered. Always ensure that all properties you own are included on the policy, or you risk the chance of not being covered and taking full responsibility for the costs of damages and any repairs needed.

Block of flats insurance should be discussed with your insurance provider.

Landlords Insurance – Discussing All Insurance Types

When you plan on letting a property, you must have landlords insurance. What does this cover? That is the tricky party. Different insurers and policies will include varying cover options. Some coverage that’s optional with one insurer will be added into a standard policy with another insurer.

The following cover is available.

Landlords Insurance

What does landlords insurance cover? A general term, you’ll receive buildings cover under your policy. This is the most important cover available because it protects your actual structure if damage occurs.

For example, if your property burns down, this would be covered within your policy.

In general, the following would be covered:

  • Fire. In the event that fire breaks out, money will be dispersed. Fire can occur accidently or by an act of God. If lightning strikes the home and it catches fire or a tenant leaves a candle burning, you’ll be covered.
  • Flooding. Broken water pipes or an unexpected flood. Burst pipes that cause damage will also be repaired.
  • Acts of God. Some things are not within your control. Vehicles that drive into your home would be covered. Falling trees or lightning strikes would also be an act of god.
  • Liability. If a renter trips and falls in or on the property, you would be covered in the event that a lawsuit was filed. Liability will protect you no matter who is injured on the property.

Subsidence is another inclusion.

Landlords insurance is a necessity by your mortgage company. You will need to maintain this insurance if you’re still paying for your property. If you own the property outright, you will still want landlord’s buildings insurance so that your property can be rebuilt if damage occurs.

Contents Insurance

More and more insurers are including contents cover within a standard policy. This is provided on a property by property basis, so if you have multiple properties, you’ll want to secure cover for each separate property.

Under contents insurance, your property’s furniture, fixtures, equipment and any other household items would be covered while the property is let.

A few of the many items that will be covered in a policy include:

  • Furnishings
  • Flooring and carpet
  • Walls
  • Electrical equipment and appliances

Accidental damage will also be available. For instance, if a tenant accidently breaks your television, this would be covered within a policy.

Contents insurance will require you to provide a full list of items that are to be covered. If new additions are added after a policy is made, you’ll be required to contact the insurer to add the new items to your list.

Claims will often require you to provide a receipt for the items damaged. Ensure that you save any receipts you have.

Portfolio Insurance

This is cover that not every landlord will need. If you’re an investor and own many properties, this is an option to keep insurance premiums low while still securing the cover you need. Typically, you’ll need to have 5 or more properties to be able to request portfolio insurance.

Blocks of flats can also be insured.

Essentially, this is one big policy that requires one premium and renewal date. As a landlord, keeping up with several policies can be a tedious task. Instead, portfolio insurance will:

  • Keep premiums lower.
  • Reduce the amount of paperwork.
  • Provide one premium and renewal date.

The best part is that your policy will be tailored to your specific needs. You’ll want to discuss your options with your insurance provider. Always try to haggle for a lower premium price due to multiple properties needing to be insured.

Home Emergency Cover

What happens if your roof leaks, or your plumbing or heating systems breaks? Calling a professional to make a repair or replace the unit(s) can be very expensive. Home emergency cover will protect your property 24 hours a day, 7 days a week.

This cover is said to protect against essential service loss.

Among the many essentials include:

  • Plumbing systems
  • Heating systems
  • Roofs
  • Drains and sewage
  • Power supply problems
  • Security
  • Infestation

This insurance will even come to the rescue if you lose your keys. Most policies will also have no excess to pay.

Home insurance cover is often very affordable and can help you save a lot of money in the event that one of these essentials breaks.

Rent Guarantee or Loss of Rent Cover

There are times when tenants will fail to pay rent. Sometimes, a tenant will leave the property, and as a landlord, you won’t have the rental money to be able to pay your mortgage. This can become a major issue.

Loss of rent cover will pay some or all of the rent that you’re supposed to receive from a tenant.

There is often a short duration of payments that will be received before cover ends. You will need to speak with an agent to understand just how much cover your policy will include.

Keep in mind that many of the cover options mentioned are often included within a standard landlord’s insurance policy. Even when included, you may be able to bump up your coverage limits for a relatively small increase in your premium.

Read over your policy to determine what exact cover you have and speak to an agent if there is something you don’t understand fully.

It’s highly recommended that you talk with your insurance agent to have your policy limits tailor-made to your needs. Bundling multiple covers under one policy may allow you to receive a discount.

Find out more about landlord insurance at www.iinsure365.co.uk.

Expert Landlords Insurance Q&A

No matter whether you’re a first-time landlord or a seasoned veteran, you know just how important landlords insurance is. But you still may have some questions about your cover, like what type you need or what certain insurances cover. In this Q&A, we’ll answer every landlord’s most pressing questions about their insurance.

Q: Why Do Landlords Need Buildings and Contents Insurance?

A: Many landlords make the mistake of thinking a typical homeowner’s buildings and contents insurance policy will cover a buy to let property. However, this is often not the case.

First and foremost, landlords need to notify their mortgage company that they’re letting their property. Next, landlords need to ensure that they have an appropriate insurance policy. Landlords insurance will be tailored to a landlord’s needs. It will include liability cover as well as rent loss, buildings and contents insurance.

Many policies will also cover you for up to 90 days if your property is unoccupied. This is something an ordinary homeowner’s insurance policy cannot offer if the home is tenanted.

Q: Do I Still Need Contents Insurance if My Property is Unfurnished?

A: Most landlords offer unfurnished lets. But just because your property isn’t furnished, it doesn’t mean you can’t benefit from contents insurance. If the unit has carpeting, curtains, blinds, lights or appliances, your contents insurance can cover the cost of repairs or replacements if tenants should damage any of these items. Contents cover will protect any item in the home that belongs to you, the landlord.

Q: What Happens if My Property Becomes Uninhabitable?

A: If your property is no longer habitable and your tenants are forced to move out, you’ll still need to pay your mortgage. No matter whether it’s a fire, water leak or a flood that damages the unit, repairs can take quite a bit of time to complete. If you have a landlords insurance policy, you’ll have loss of rent insurance that will cover lost rent if your property is uninhabitable.

Additionally, the policy may also include alternative accommodation cover that would cover the cost of relocating your tenants to a new unit.

Q: What’s Covered If My Property is Unoccupied?

A: This will really depend on your policy. If your property is already unoccupied, the insurance company will view this as high risk. Why? Because damage isn’t always found right away. After all, no one is living in the unit.

Ideally, you want to choose a policy that will provide 30 to 90 days of cover with no restrictions. Hopefully, you can find a tenant within that timeframe.

Q: Why is Liability Insurance Necessary?

A: Liability is a major concern for landlords. It’s important to ensure that you have an appropriate amount of liability cover to protect yourself from these types of claims. If a tenant or guest on your property is injured and it’s classified as negligence, you will be responsible for the damages if you don’t have adequate cover.

Q: Do I Need Malicious and Accidental Damage Cover?

A: In short, yes. Malicious and damage cover will likely be a part of your standard landlords insurance policy.

Even the most diligent and responsible tenant can accidently damage your property. Be it a simple hole in the wall or a burst pipe that causes water damage, accidental damage cover will ensure that repairs or replacements can be made.

Malicious damage cover will cover the cost of damages or losses caused by tenants intentionally. This also includes theft.

Q: What is Emergency Cover? Is It Necessary?

A: Emergency cover is an additional policy that you can purchase to cover emergency situations. Tenants will be able to call an emergency number and have someone come out to fix the problem – day or night.

Emergency cover isn’t a requirement, but it’s a nice supplemental cover to have. It ensures that tenants don’t call you in the middle of the night to fix a burst pipe or another emergency. It also ensures that tenants get the help they need no matter what time of day or night it is.

The cost, conditions and details of this cover will vary with insurers. This is not a cover that every landlord will need, but if your budget will allow, it’s a worthwhile investment.

How Much is Landlords Insurance?

When you go to get a quote for landlord insurance, what actually occurs? The insurer will go through numerous factors to determine how much your policy will cost. Even your tenant type will have a big impact on the overall cost you’ll pay for your policy.

The factors that will make up your policy’s pricing are:

  • Number of properties. The more properties you own, the more you’ll have to pay. If you own several properties, you may be able to bundle them all under one policy to actually cut back on premium costs.
  • Renter type. Will you be letting to a person or a business? Commercial and residential property types will vary greatly in price. Insuring commercial property will always come at a higher experience than a residential property.
  • City. The city where the property is located will be factored into the equation. If your property is located in London, you can expect to pay a higher premium.
  • Property type. The style or type of property that’s being let will be considered. An apartment will be more costly than a bungalow in most cases due to a higher level of people in the building.
  • Property value. Million pound properties will cost more to insure than properties of lesser value. The type of material used in the construction of the property as well as the property’s age will also be factored into the policy premium.

These are just the factors that you won’t be able to control. There are also numerous other factors that will be added into the equation that will lower or raise your landlords insurance premium.

  • Cover amounts. You’ll be able to choose from different cover amounts. With liability cover, the lowest cover will be less expensive.
  • Cover additions. Policies may have other covers added into them. You may request cover for accidental and malicious damage or contents cover. The more you add to your policy, the higher the premiums will be. It should be noted that you may receive a discount when adding additional cover if all additions are added into one policy.

The final consideration is the property’s past. If your property is susceptible to flood damage and repeated claims have been made in the past, your premium will go up as a result. Any property that has suffered structural damage will also require a higher policy premium as a result.

When searching for landlords insurance, you’ll find that the rate you’ll pay will vary greatly from one insurer to the next. As such, you’ll want to review your policy to see what is and what isn’t included under a base policy. Furthermore, you’ll want to look at the total cover amounts. Most policies are cheaper because they do not offer the same level of cover.

Always inquire about bundling insurance policies together for a lower premium.

Landlord insurance is a necessity. If you currently own a property and want to let it, it’s time to start looking at your insurance options. Insurers in your area will be able to provide you with a quote online in most cases.

A Beginner’s Guide to Landlords Insurance

Landlords insurance is not only a wise investment, but in many cases, a legal requirement. But if you’re a new landlord, you may not understand what this type of insurance includes. This landlords insurance guide will help you get a better understanding of what this policy covers.

Why Do I Need Landlords Insurance?

It’s a common misconception that a homeowner’s insurance policy will cover a let property. Homeowners insurance will only cover owner-occupied properties. Landlords need to let the mortgage company know that their property is being let out to tenants. They’ll also need to ensure that they get landlords insurance. Why? Because these policies are tailored to a landlord’s needs and risks.

As a landlord, you want to protect your investment. And the income that investment produces. Landlords insurance will help you do that.

You’ll also need this specialised insurance because a typical homeowner’s insurance policy won’t cover your tenanted property.

What Does This Insurance Cover?

Landlords insurance can cover a wide range of issues, but its primary purpose is to protect you from financial loss if something should happen to your property or a person is injured while on your property.

Let’s say that your property caught fire. A standard landlord insurance policy would cover the cost of repairing the damage as well as lost rent income. Tenants won’t be able to occupy your unit while repairs are being made, but you’ll still need to pay your mortgage. Without landlords insurance, you’ll be left to pay the mortgage out of your own pocket.

You can also purchase cover for legal expenses, which will pay for the legal costs associated with evicting non-paying tenants. It will also cover the cost of legal representation should a claim be filed against you.

Contents insurance may or may not be included in your policy. This will cover the cost of replacing or repairing any items inside of the unit that belong to you. However, it will cover your tenant’s belongings. They’ll need to purchase that themselves.

How Much Cover Does The Policy Provide?

A landlords insurance policy will have a BSI, or Buildings Sum Insured. This is a set amount that any payouts for claims will be calculated from.

A BSI should be the estimated costs of the rebuilding the property. Rebuilding will cost less than buying an equivalent property, but it’s important to ensure that you don’t undervalue your property. On the other hand, you shouldn’t overvalue your property either. Ensure that your rebuilding valuation is accurate.

Do You Need a Policy For Each Property?

If you own more than one property, you may be wondering if you need to purchase a separate policy for each one. Managing multiple policies can be daunting and overwhelming.

In most cases, multiple properties can be added to one policy. This will save you money and help keep things organized.

How Are Premiums Calculated?

A number of factors determine what an insurance policy’s premium will be. Risk of damage and non-paying tenants are major considerations.

The BSI will also be another factor. Former claims, the type of property, the property’s age and the type of tenants you choose will affect your premium as well. For instance, if you purchase a property with the intention of letting to students, your premiums will be higher than if you plan on leasing to a family. Unfortunately, many insurance companies will not cover student properties.

The good news is that even if you have a high risk property, you’ll be able to find an affordable insurance policy.

What Additional Cover Can You Purchase?

Aside from the basic cover that your insurance policy provides, you can also purchase additional cover to protect against other risks. The most popular insurances include:

  • Home emergency cover. If a pipe should burst in the middle of the night or the electric goes out, emergency cover will cover the cost of repair. It will also help get the problem resolved quickly.
  • Rent guarantee insurance. This type of insurance will protect you if you lose income from tenants who refuse to pay rent. It will also cover any lost rental income if your property is vacant in between tenancies.
  • Legal expenses cover. If you’re involved in a legal dispute with your tenant, legal expenses cover will cover the cost of legal representation. This is a supplemental insurance policy, but it’s a worthwhile one. With a higher rate of tenants making claims against landlords, this cover can provide you with vital protection.

What is Landlord Liability Cover?

Landlord liability should be one of your biggest concerns, and liability cover will help protect you against these risks. As mentioned previously, rates of tenant claims against landlords are on the rise. If a tenant should be injured or fall ill on your property and you are considered negligent, you will be responsible for damages.

Damage and injury claims can be very costly. Most policies offer liability cover for up to two million pounds. So, if you do wind up in court, the cost of damages will be covered.

It’s important to understand your rights as a landlord. Even with liability cover, you still want to minimize your risk of having a claim made against you.

Now that you understand what an insurance policy covers, it’s important to determine what your needs are. From here, you can find a policy that accommodates those needs. Take your time and shop around for policies to ensure you obtain a great price without sacrificing the quality of your cover.

Landlords Insurance for Just 90 Days: Summer Letting Explained

Sometimes, you don’t want to pay for landlords insurance premiums for the entire year. If you’re a landlord that only lets to tenants during the summer, you’ll find that most insurers will not offer just a 90 day insurance policy; it’s not feasible for the insurer.

However, there are ways to secure the proper insurance for just a short term.

Why 90 Days?

Landlords that want to let seasonally don’t want to pay an annual plan. If you go away during the winter to avoid the cold or want to let to a friend for just 3 months, 90 days is the perfect choice.

Technically, you’ll be able to obtain insurance for any duration you like.

Let’s see how.

Start Your Search

Fast and effective. You can start your search by contacting insurance agencies on the phone. If you’re used to obtaining quotes online, this method won’t work. You want to be able to talk with an agent on the phone to ask questions.

First, tell the agent that you’re interested in a seasonal or 90 day policy.

This is the easiest way to go about the process. Oftentimes, your first few calls will not provide you with the insurance you need.

If you do find an insurer that is offering a short-term policy, this will be the ideal situation. However, when you’re on the phone, also inquire about cancellation terms. Most policies can be canceled, but you’ll have to pay a fee for breaking the contract. A fee is much better than having to pay for having your property rebuilt.

Cancellation must be a possibility or else you will have no other recourse besides paying the policy until it runs out.

When you cancel your policy, you will have the option to obtain a new policy in the future. You can simply call and ask to receive a new quote.

Insurance Options

Now that you know how to get landlords insurance, you’ll need to know what your cover options are. First and foremost, your actual building will not be covered under a standard policy. Instead, you’ll want to obtain landlord buildings insurance.

Building insurance will be included. This insurance is the most sought among all landlords in the UK. This insurance will cover the following:

  • Rebuild costs. If your property burns to the ground, all costs will be covered.
  • Fires, floods and acts of god will be included in a policy.
  • Subsidence will be covered as well. Note that subsidence must be present at the time the insurance policy was taken out

Insurance companies will only provide buildings insurance when a structural report has been submitted.

Above all else, this is the one insurance that you must have. If a fire occurs or the property is destroyed, you will receive between 250,000 and 1 million pounds to cover all of the rebuilding process. Cover can also be increased if necessary.

Contents insurance is another optional yet highly recommended insurance type.

Contents will include:

  • Sofas
  • Furniture
  • Doors
  • Flooring
  • Fixtures
  • Internal walls

You’ll also have any electronics covered. If a tenant breaks your television or steals it, this would be covered within your policy.

An insurer will ask you to provide a complete list of all contents within the home. This list will be checked in the event that you make a claim. While not always necessary, you’ll want to save any purchase receipts that you may have. When claims are made, insurance companies often ask for a receipt of the item before they will release any money to you.

Loss of rent insurance is a cover you probably won’t want to secure when getting a policy. Why? If you’re only letting for 90 days, you won’t need to worry about loss of rent as much as with a long-term rental.

I highly recommend that you talk to your landlord insurance provider and ask about your options for a 90 day policy. Insurers that don’t offer this policy length may allow you to terminate the policy, but you will have to pay a fee as a result.

Even if you’re letting a property to your family or friends, landlords insurance will ensure that your property is covered in the event that damage occurs. Your investment will be much safer with insurance.

Do You Have Enough Landlords Insurance?

Did you know that nearly half a million landlords are underinsured? You might think your landlords insurance is enough, but you may have inappropriate or insufficient cover.

If you’re a new or part-time landlord, inexperience may be to blame for your lack of insurance. It’s hard to ensure you have the right cover if you don’t know the rules of the game. But your property is your business and your biggest asset. What’s the first rule of business? To protect your assets. The only way to do this is to make sure you have adequate landlord insurance.

Make Sure You Actually Have Landlord Insurance

First thing’s first, you need to make sure that you actually have landlord insurance. It may sound obvious, but first-time landlords often confuse home insurance with landlord insurance. Your standard home insurance policy will not cover your rental property.

If you don’t have a landlord insurance policy, get one. ASAP. Otherwise, you may be faced with major out of pocket expenses if a claim is made.

Avoid Overly Cheap Insurance

Let’s say you do have an appropriate insurance policy in place. Are you sure you have enough cover? If you’re motivated by price, you probably don’t.

You can find great deals on landlords insurance, but if you go with a policy that seems extraordinarily cheap, your property may not be fully protected.

Even experienced landlords have claimed property damage with payouts as high as £1,200. Property damage is nothing compared to the cost of liability claims. If a tenant is injured or becomes ill because of your negligence, a public liability claim could bankrupt you. These types of claims are on the rise, so it’s crucial to ensure that you have adequate Public Liability cover.

Ensure You Have Adequate Cover

As a landlord, there are four types of cover you need: buildings, contents, public liability and loss of rent.

  • Buildings insurance will cover the cost of rebuilding should the worst happen. The sum insured should be equivalent to the rebuild cost in your buildings survey. Some landlords undervalue their property to lower their premiums, but this is never a good idea.
  • Contents insurance will cover the cost of damages or losses to the contents you own. This includes any furniture, fixtures, carpets, etc. you provide your tenants. Most standard landlords insurance policies come with this cover, and oftentimes, the cover can be as high as £5,000.
  • Loss of rent insurance will cover lost rent if your property becomes uninhabitable and your tenants must move out.
  • Public liability insurance will protect you from claims made against you by tenants. If a visitor or tenant is injured or falls ill because of a negligence on you part, you may be responsible for paying damages. Standard policies typically include cover of £5m.

Rent guarantee is another insurance that isn’t necessary, but recommended. It covers the cost of lost rent if a tenant fails or refuses to pay rent. Both rent guarantee and loss of rent covers will ensure that you’re protected if a natural disaster makes your property uninhabitable or your tenant stops paying you each month.