According to major insurance companies, far too many landlords don’t have the correct insurance policies on their properties. Many buy the cheapest buildings and contents insurance policies in the mistaken belief that they are then covered, only to discover when they have to make a claim that they are in fact NOT covered.
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Standard Insurance Policies are Not Suitable for Rental Properties Standard home and contents insurance is not suitable for rental properties, whether you have a holiday let or just a regular letting property. If something goes wrong standard home insurance policies do not provide cover and are very unlikely to pay out for the damage caused. This oversight could end up costing you tens of thousands of pounds. Standard policies also don’t cover theft of property or damage caused by tenants. And if a tenant files a personal injury claim against you, it could ruin you financially.
Price Led Decision Making “When you first start renting out property, you may not realise all the legal implications and duties involved. Last year, for instance, we found that a third of these landlords are often inadvertently breaking laws on safety checks and a quarter have the wrong or no insurance,” says leading insurer, AXA.
Insurance companies say that many landlords use cost as the primary filter when looking for insurance policies. There is nothing wrong with being price-led, but make sure it isn’t at the expense of cover.