A recent survey shows that a staggering one in four residential landlords in the UK actually have the wrong insurance – or even more terrifyingly, no insurance at all – leaving themselves and their tenants at risk. The main concern is that around three quarters have bought personal household insurances instead of commercial insurance, leaving them open to having any claims declared null and void.
There seems to be a phenomena of 'accidental landlords' appearing – these are people who did not buy with the intention of renting out their property, or are being forced to continue renting because they are unable to sell in the current market place.
One in five people who were shown to have the wrong insurance had previously been living at the address themselves at some point and simply renewed their existing home insurance cover then they moved out without realising that, as landlords, they needed a commercial insurance in place.
The research recently carried out also highlighted the following:
28% of people thought that landlord and residential cover were the same
43% were unaware of the existence of landlord cover
11% thought the landlord option was just too expensive
18% have nothing saved should their insurer turn down a claim
73% have less than £1,000 set aside for emergencies
5% are likely to claim in any given year
However, insurance is only one aspect that landlords must concern themselves with and the following figures indicate that many landlords are leaving themselves open to financial hardship:
Only 53% have a tenancy agreement – a 'must have' to protect both landlords and tenants
27% have a current inventory
54% take a deposit (less than half of which are kept in a protected scheme)
Whilst many people have, through necessity, become landlords, the consequences of not putting in place proper administration and core protection could result in much bigger problems down the line. Landlord insurance is an absolute must and professional advice will help landlords to ensure they cover themselves, their property and their tenants. Having someone else living in your property can present very different insurance risks than if you are living in your property yourself, and not having the right insurance could bring financial ruin.
It is wise to seek professional advice. One call to Westhill Insurance Services will allow you to explore your options, so that if you find yourself being an 'accidental landlord' you can at least ensure that your property is properly insured. Our professional and friendly team will offer you sensible advice – and as an independent insurance broker, we will shop around to find the best options for you.
Contact Westhill Insurance Services, today.