Having The Correct Insurance Saves Money

Having The Correct Insurance Saves Money

Landlords are being urged to reassess any insurance policies they may already have taken out, in order to avoid the possibility of underinsurance, after one poor unsuspecting landlord was left more than £100,000 (GBP) out of pocket.

The landlord unfortunately suffered a fire in the block of flats he owned and submitted a claim for nearly £400,000 before realising that his insurance policy didn’t cover anywhere near that amount.

As a consequence he received less than £300,000 (GBP) and had to find the remaining money himself.

This may appear to be a particularly extreme example of underinsurance and highlights the importance of ensuring that Landlord Insurance liability 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.

  • 10% of all fire claims are due to tenants smoking in rental property
  • 5% are due to candles
  • 5% are due to faulty electrical wiring.

The statistics also show that Houses Of Multiple Occupation (HMO’s) are more likely to suffer an insurance claim for fire damage than a family home.

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