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Landlord Night mare as tenant causes malicious damage to property

Investing in specialist Landlord Insurance is vital for UK Landlords

Investing in a specialist landlord insurance policy is something all buy-to-let property owners should do, but it is the one vital area where people mistakenly try to curb their financial expenditure, it has been claimed.

The statement comes at a time when a recent Paragon Mortgages report revealed that during the last 3 months, UK BTL landlords have increased the size of their rental property portfolio’s by an average of 1.8 properties each.

Sim Sekhon, spokesman for Legal4Landlords explains: “Property investors put a lot of time and effort into finding the right properties for their Buy-To-Let property portfolio’s and need to ensure that they have the right insurance cover in place to adequately protect their property assets. If property investors choose the wrong insurance policy, it can have disastrous financial consequences as they discover that they are not covered for malicious damage. Standard buildings insurance cover will not protect landlords in the event of malicious damage to the property by tenants or any loss of rent if the tenants leave unexpectedly. Unfortunately landlords only discover that their insurance is completely inadequate after they try to claim, leaving them with damaged property and a huge bill to make it habitable again. A situation that many landlords simply cannot afford to be in. Landlords should always read the small print and make sure they are comprehensively covered by a specialist landlord insurance policy”.

Regular home insurance will not cover a residential property unless the owner actually resides at the property.

Many residential buildings insurance policies actually state in the small print that the policy will be deemed void if the property is used for rental purposes, so it is vital landlords get the correct level of insurance cover.

Landlord insurance provides a more comprehensive level of protection and it is important that all property investors who are landlords of buy-to-let properties invest wisely in it.

Laura Howard from Moneysupermarket.com explained how a good landlord’s insurance policy should include third-party liability in case of damage caused to the structure of a property by a tenant and includes covering the cost of re-housing tenants if a fire or flood makes the rental property uninhabitable.

Ms Howard also advised landlords to make sure the policy takes in to account any furniture provided by the property owner and provides liability cover in the event that a tenant or their visitor is injured at the property and claims against the landlord.

The Association of Residential Letting Agents (ARLA) advises landlords that failing to seek permission from or not informing their current mortgage provider that the property is to be rented out could also invalidate any subsequent claim.

Tenants caught attempting green fingered financial return

Green Fingered Tenants Void Landlord Insurance as Buy to let targeted by drug gangs

Landlords looking to squeeze every last penny of profit from rental properties may have made the wrong decision when it comes to choosing the right insurance for their rental properties.

Only to find that when they need to make a claim they are either not covered for it or worse still their insurance is actually null and void.

Cheapskate landlords may have taken what they thought was the easy and cash saving option and instead of choosing a specialist Buy-To-Let or Landlord insurance policy, they fulfilled their legal obligation to their mortgage lenders by taking out a cheaper standard Homeowner’s “Buildings Only” insurance policy.

Every day in the UK another unfortunate landlord becomes the victim of crime. From anti social tenants to drug producers, who do not respect the law, the landlord’s rental property, or anything else, including the consequences of their actions, often causing many thousands of pounds worth of damage to the landlords property in the process.

Damage that may not be covered by some insurance policies.

Due to the economic squeeze on many UK household’s finances, the opportunity to make a quick buck has become an increasingly attractive proposition for some members of society, even if that means breaking the law.

Recent reports suggest that an increasing number of tenants in Private Rental Sector (PRS) properties are attempting growing cannabis or marijuana as their way to try and cash in.

The emergence of Buy To Let cannabis farming was first reported in 2003, when increasing numbers of buy-to-let properties up and down the country began to be targeted by gangs of cannabis farmers looking to house their criminal activities.

The gangs would present bogus identity credentials and references and have the cash to cover the rent, the landlord would be fooled into thinking that they had found perfect tenants, only to get a call or knock on the door from the police a few weeks later.

Tenant referencing has become a lot more sophisticated in recent years and all prospective tenants should be comprehensively referenced and credit checked by a reputable provider, such as Legal 4 Landlords, who will do all the work for you.

However, there will be a small minority of people who will pass the in depth referencing process and still go on to carry out illegal practices in a rental property.

Private Rental Sector residential properties in respectable suburban neighbourhoods have become the preferred base for cannabis cultivation for some drug gangs as they think they will attract less police attention in more middle class areas.

If the landlord suspects anything illegal or anti social is going on at their rental property and need tenants to be evicted, contact Legal 4 Landlords at the earliest opportunity and they will handle the eviction process on the landlords behalf

Often when cannabis farms are discovered the damage to landlords and their rental properties, in both financial and legal terms, can be catastrophic. Uninsured landlords may find themselves having to foot the bill for extensive repairs to their properties

Landlords should ensure that their specialist Buy To Let or Landlord insurance policy covers them for all the possible eventualities, including malicious damage by tenants.

If landlords discover that a tenant is carrying out cannabis farming or any other form of anti social behaviour or illegal activity in their properties they should call the police immediately and should not directly confront the tenants.

Legal 4 Landlords can handle the eviction of anti social tenants for UK landlords.

Insurance is a must!

Specialist Insurance provides landlords and tenants with peace of mind

UK landlords should already be aware of the necessity, legality and financial importance of having the right insurance protecting their property asset and should always seek to get their rental properties suitably covered with a comprehensive landlord or Buy-To-Let insurance policy.

However, whilst landlords stay insured keeping their property assets protected, very few tenants bother to investing in contents insurance or specialist tenant insurance.

Even though the tenants don’t own the property and are therefore not responsible for the actual bricks and mortar, the property does still contain all of their personal belongings, including important documents and irreplaceable mementoes and so insurance should be an important consideration.

In the event of a claim having to be made, in the case of a fire, for example, tenants may have mistakenly thought they would automatically be covered by the landlord and tried to claim for loss of their important and expensive items from the Landlords Insurance policy, the landlord would receive compensation for the damage to the property, whilst the tenants would find, in most cases, that their claims were unsuccessful and they would be left with nothing.

Tenant Insurance is a necessity is because it is highly unlikely that any tenant belongings will be covered by the landlords insurance. The landlord should have insurance cover to protect the fabric of the building itself, (including certain contents such as the kitchen cupboards, bathroom fixtures etc) and even cover for loss of rent but not the contents of the tenants.
Tenant insurance will also help to protect the tenant’s deposit as good policies cover tenants against accidental damage.

Read the full article on Legal 4 Landlords Blog

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