Yes, we do!

You can opt to pay a voluntary excess on top of your mandatory excess, which may result in discounts of up to 40% on the premium – depending upon the level of excess selected.

What is the excess?

This is a standard insurance feature that is usually expressed as a sum of money.

That sum will be the amount of money that the policyholder will pay towards the cost of any future, successful claims. It is sometimes referred to as the ‘first part’ of a claim because it will be deducted from any final settlement payment.

If that sounds a little complicated, it’s perhaps better illustrated with some simple figures.

If you have an excess on your policy of £500 and make a claim resulting in an agreed figure of £1000, then the amount paid to you would be £1000 minus the excess of £500 as the ‘first part’ of the claim. That would leave a balance to be paid to you of £500.

Had the agreed claim been for say £400, the net sum paid to you would be zero after payment of that £400 by your £500 excess.

Under most circumstances, it is safe to assume that the higher the excess is set, the lower the premiums be as a result if all other things are equal.

Some policies may have a mandatory minimum level of excess which you will not be able to reduce. The policies of some providers may not allow you to voluntarily increase the excess in order to obtain discounts on your premium.

Fortunately, ours does!

Here we look at some of the recent UK property news headlines …

Average UK property price hits a record high of £276,091

The average price of a home in the UK reached a record high of £276,091 in December – attributed to the increased volume of sales encouraged by buyers’ “race for space”, a Stamp Duty holiday, and the increased spending power of individuals who have spent much of 2020 and 2021 isolated at home.

According to the House Price Index published by the Halifax building society, the average house price increased by more than £24,500 in the course of 2021, with the year marking the biggest annual increase in prices since March 2003.

Average prices rose by 1.1% in December alone, with that quarter’s growth achieving an increase of 3.5% – a level not seen since November 2006.

Could the Government clamp down on holiday rentals?

A story in Landlord Today on the 10^th of January took up concerns that have been expressed about the impact on the housing market of the growing number of holiday homes and Airbnb rentals.

In some parts of the country, the clamour for holiday rentals has left many local people unable to buy a home in their own area, labour shortages have been created, and community amenities such as shops and schools have been adversely impacted.

Following a debate of such issues in the House of Commons, it has emerged that the government will consider launching a consultation about the creation of a register of holiday rentals and might even pursue a suggestion that owners pay a higher rate of council tax than that paid on long-term lets.

Some tenants potentially facing a tax

Some tenants face a Stamp Duty liability about which the majority of them – not to mention their landlords – will be completely unaware, suggests Landlord Today in a story on the 12^th of January.

The little-known rules have been in force since 2003 and impose a Stamp Duty liability for those tenants who have paid a total of £125,000 or more in accumulated rent – because their rental is especially high value, for instance, or because the tenants have continuously renewed the same tenancy over many years.

If that accumulated rental ceiling of £125,000 is reached, the tenant becomes liable to pay 1% of the annual amount of rent paid in the form of Stamp Duty Land Tax (SDLT).

To illustrate the effect of these rules, the article cites the example of London, where average monthly rents are currently £1,597 (£19,164 per annum). At that rate, therefore, a tenant in such accommodation will reach an accumulated total of £125,000 in rent paid after just 6.5 years – when an annual SDLT of £192 will become payable.

New guidelines for unvaccinated buyers and renters

In a posting on the 12^th of January, online listings website Zoopla explained that failing to be vaccinated could affect those involved in buying a new home or taking up a new tenancy in rented property.

The government has introduced new rules requiring anyone who is not fully vaccinated against the virus to self-isolate in their current home if someone in their household tests positive for Covid – even if it means missing their moving day.

Those who are fully vaccinated, on the other hand, remain entirely free to go ahead with their intended move of house, even if a household member has tested positive. They are, however, “strongly advised” to take a lateral flow test every day for seven days, and to self-isolate if any of their tests are positive.

If you are the landlord, it pays to keep abreast of anything that is likely to affect your buy to let business. Overlooking any new laws or regulations or simply being unprepared for those changes could cost you dearly.

So, let’s look at the six forthcoming and most likely developments in the year ahead. *

1. Carbon monoxide laws

Ministers have already decided on the introduction this year of significant changes to carbon monoxide laws – principally to extend further protection to those in social housing but with across the board changes that will also typically affect the whole private rented sector.

Under the new rules, every unit of social housing must be fitted with smoke alarms. Carbon monoxide detectors and alarms must also be fitted where such housing has a gas-fired boiler or open fire.

The regulations also extend to all property in the private rented sector. Currently, at least one smoke alarm is required on each floor of a let property and a carbon monoxide detector in any room in which an appliance or fire is capable of burning solid fuel.

2. Minimum six-month notice periods in Wales from Spring 2022

With effect from this Spring, landlords in Wales will have to give tenants at least six months’ notice of any notice to quit the let property, points out estate agents Hamilton Fraser.

The same legislation also prevents landlords from issuing such notices – with the exception of Section 8 notices – within the first six months of any tenancy. The combined effect of these changes, therefore, is to grant any tenant in Wales a minimum of 12 months’ occupancy.

3. Rental reform

2022 should also see some of the most significant changes for quite some time to the private rented sector as a whole.

Delayed from last year, said the National Residential Housing Association (NRLA), the proposed Renters Reform Bill is scheduled to address issues including:

• repeal of Section 21 of the Housing Act;

• reform of Section 8 (the so-called “no-fault” evictions);

• the possibility of a formal register of landlords;

• the introduction of lifetime deposits; and

• the improved enforcement of housing laws and regulations.

4. Energy efficiency rules

The year ahead is likely to see further steps along the path towards government plans for enhanced energy-efficiency in the private rented sector, suggested an article by Which? magazine on the 29^th of December.

The precise steps remain to be seen but the government has already decided to delay until 2026 (instead of the original 2025) a deadline by which all private sector landlords must bring their let properties up to a minimum band C energy-efficiency rating.

It also remains to be seen whether there will be a price cap on the maximum amount landlords will be expected to pay to upgrade the energy efficiency of their properties.

5. EV charging points requirement in new builds and refurbs

At the end of last year, the Prime Minister set the ball rolling by announcing that all new buildings and those in the process of major renovation will be required to install charging points for electric vehicles (EVs).

That, in turn, will require major infrastructure developments including:

• real-time monitoring of charge consumed and the setting of charging schedules to take advantage of off-peak energy tariffs;

• establishing minimum technical standards (according to British Standards);

• cyber security arrangements that comply with European standards EN 303645; and

• rules for the inspection, testing, and removal of charging points to the required standards.

6. Making Tax Digital

Until now, you have been able to avoid signing up to the government’s Making Tax Digital (MTD) initiative if your buy to let business had an annual turnover of less than £85,000.

With effect from the start of the new tax year this April, whatever your business is earning, you will be required to submit your VAT tax returns in accordance with MTD requirements.

Summary

As in previous years, 2022 is likely to see a further raft of new laws and regulations that impact you as a landlord and your buy to let business.

Make sure to follow any changes that are put into effect – and, whenever possible, prepare for those changes well in advance.

*Please note, these proposed changes are based on our current understanding of the Law etc. Please note that this information is for guidance purposes only, as not all these changes may come into effect – and some may only come in to affect in certain areas of the UK. Please always seek professional advice if you are unsure as to your obligations as a landlord.

When we help you to find a policy suitable for your needs, we also make sure that you are totally clear as to how to make a claim should the need arise.

As a general principle, you will lodge your claim with the claim services of the issuing insurer. In some cases, they may administer the claim themselves or in other cases they may use a third-party to do so. Whichever is the case, it should make no difference to the excellent service you receive.

As you may appreciate, you do not make your claim with us as such. Our formal involvement in handling a claim would mean we would sit between you and the issuing insurer. That would be likely to achieve little other than administrative delay.

However, if you do need to make a claim against the policy, we have sourced for you, please notify us so that we can assist with its smooth processing. It is not unusual for questions to arise during a claim, and you should not see that as any reflection on the validity of your position. It is routine and typically only to clarify aspects of the detail.

Do note though that we are unable to overrule any positions adopted by the issuing insurer and their claims handling. We have a role to play in clarifying positions and helping you to understand any points of detail and that’s a duty we take very seriously but ultimately the decision as to whether to accept a claim or not will sit with the insurer.

Remember that the provision of receipts, photographs and where appropriate witness testimonies, may all help speed your claim to final resolution.

We are very pleased to confirm that Cover4LetProperty policies will cover all types of tenant irrespective of the category they may come into.

That would typically include students, social benefit recipients, asylum seekers and so on.

It is worth drawing to your attention though that not all insurance providers will necessarily do so, and some may exclude certain groups of tenants based upon perceptions of risk. That is why it is important that you understand the terms of your let property insurance.

Other considerations

You should also be aware that insurance might not be your only consideration in these circumstances.

There may be other, perhaps rather more unusual circumstances under which there may be restrictions as to who you can let your property to.

That might arise in circumstances such as when a property sits in a conservation area or is in a location where it is surrounded by sheltered housing etc.

They may be exceptional and unusual situations though and for the most part, your main issues will most likely be with your insurance cover and possibly your mortgage provider.

It is important to advise your insurance company about changes in the tenancy of your property. If you are in any doubt or have any questions, please contact us on 01702 606301 and we will be happy to advise you further.

Citing research by the pressure group Action on Empty Homes, an edition of the Big Issue on the 25^th of November 2022, reported that there are some 257,331 long-term empty homes in England – those that have been unoccupied for longer than six months. The same sources revealed that there are a further 43,000 long-term empty homes in Scotland and around 27,000 in Wales.

This is at a time when the overall shortage of housing – especially for those looking for affordable housing – is getting worse rather than better. A story in FT Adviser on the 15^th of March 2022 pointed out that in the 1990s, the average age of the first-time buyer was approximately 29. By 2002, it had reached 31. Immediately before the recent Covid pandemic, it had climbed further to 32. During that pandemic, it rose two more years to an average age of 34.

Lengthening delays in the purchase of that first home, of course, means that further pressure is put on the already high demand for accommodation in the private rental sector.

So, what is being done to bring empty homes back into the use for which they were intended – and help to address the chronic shortage of housing?

National and local government grants

At national level, the government body responsible for housing, land, and regeneration – including the regeneration of empty housing – is the Department for Levelling Up, Housing and Communities (until September 2021, it was the Ministry for Housing, Communities and Local Government. Its executive branches are currently Homes England and the Regulator of Social Housing.

Pressure groups are calling on the government to do more to tackle the growing number of empty houses. During National Empty Homes Week in 2022, Propertymark wrote to the Department for Levelling Up, Housing and Communities asking it to restart its Empty Homes Community Grant Programme, which has been inoperative since 2015.

Those initiatives included a New Homes Bonus that made available grants to local authorities to bring empty homes back into use and a Build to Rent fund for the building works that included the conversion of empty properties into homes.

These have been replaced by an overarching Home Building Fund – providing development finance for new housing – administered by Homes England.

Local government

Responsibility for tackling housing shortages caused by empty houses has instead fallen on the shoulders of local government. The execution and administration of the policy objectives and funding provided at the national level are effectively delegated in practice to local government.

It is at this level, that a large proportion of grants and loans become available to smaller, individual investors in buy to let property regenerated from previously empty housing.

With the availability of a large number of empty properties, coupled with favourable loans and bids for grants from the local authority, together with the protection of empty property insurance whilst refurbishment and modernisation takes place, there are some opportunities for prospective landlords and homeowners to make use of a previously wasted housing resource.

Access to the assistance available from local authorities for the regeneration of empty housing – by way of loans and grants – varies from one council to another.

Incentives are frequently launched, therefore, on a relatively small-scale and very local basis.

Who can get an empty home grant?

This varies depending on where the property is and your status (e.g. investor or owner-occupier). Some are available to:

• people who plan to reside in the property;
• landlords; and
• small businesses by providing empty property grants for commercial properties.

Empty property grants

One such scheme in South Wales, for instance, is offered by the local council Rhondda Cynon Taf and makes up to £20,000 available by way of grants for repairs and refurbishment of long-term empty property (that has been vacant for more than six months). The applicant must plan to use the property as their main residence for at least the next five years.

The London Borough of Brent also offers grants – of a maximum up to £6,500 – for the refurbishment of sub-standard homes (including empty houses) or the conversion of large empty homes into smaller dwellings. A condition of the grant is that when the works are completed, the property must be let to the council for a period of five years.

These two above examples help to illustrate:

• the active steps being taken by various councils around the country to identify the number of empty homes in their area;
• the type of incentives that are available by way of locally funded grants and loans;
• the very local – and sometimes quite small-scale but no less valuable – nature of such schemes; and
• the widespread recognition by local authorities that empty housing represents a wasted resource at a time when practically every part of the country faces a housing shortage.

The upshot is that if you are interested in buying an empty property to refurbish, modernise to live in, let to tenants, or sell on there is likely to be help from a local council nearby. It is important, though, to do your research and establish just where and in which districts any such scheme might apply and to make enquiries about which of your refurbishment and regeneration projects might qualify for a grant or loan.

If you are a landlord, you will want to take the best possible care of your property – and the most effective way of providing that protection is typically let property insurance. Indeed, if you have a mortgage on the property, then it will generally be a condition of your mortgage agreement that you have adequate buildings insurance in place at all times.

Here we discuss why landlords’ insurance is so important as well as considerations when getting your let property insurance quote.

It might be helpful to counter a common misconception from the outset – and that is about the cost of your let property insurance premiums. Understandable as it might be to search out low-cost landlord insurance, it’s worth remembering that the concept of “cheap” may mean different things to different people.

To some, it may mean the lowest possible cost cover, irrespective of the benefits provided. To others, it may mean a landlord insurance policy that provides the maximum cover at a price that they consider is reasonable.

You will have your own ideas about the more appropriate approach, of course, but what you are likely to be looking for is good value for money rather than rock-bottom prices.

Landlord insurance vs home insurance

Insurance needs to be in place – but not just any type of property insurance. You must ensure it is purpose-designed insurance for let property.

Standard home buildings and contents insurance suitable for owner-occupiers is not appropriate for rental properties. Even if only part of your property is being rented out, any existing owner-occupier home insurance cover you have may immediately become invalid. This reflects a change in use of the property from your principal place of residence to what is, essentially, a buy to let business asset – and the risks and perils for the respective properties are significantly different.

Although buy to let insurance is typically a little more expensive than owner-occupier home insurance cover (the cost for the former typically reflects the higher risk of loss and damage), attempting to economise by getting standard home insurance may prove pointless. Insurance companies have ways of establishing the occupancy status of your property at the time the incident took place that led to your claim.

Attempting to make a claim against an owner-occupier home insurance policy for a property you know to have been rented out, may involve making a false declaration – something that may be an offence and which may make it difficult for you to obtain insurance in future.

Am I a landlord if I rent out a room in my home?

In any situation where you start obtaining rental income from your property, you have become a landlord:

• that might apply even in what you may consider to be a relatively trivial situation, such as letting out a single room or two in your own house;
• once you cross the threshold into a landlord’s activities, you may find that any existing buildings and contents cover you have on the property may become invalid, if it was designed for owner-occupier use;
• as we mentioned above, typically, you cannot use an owner-occupier policy to protect your buildings or contents in a situation where you have tenants;
• in some cases, this might be the case even if you are letting out a room on a very temporary basis during the holidays or university term, for example. You might even find that this definition applies if you are letting out rooms to someone you consider to be a friend or relative – the governing factor may be whether or not they are paying you rent;
• keep in mind that landlord insurance might not be your only consideration when making the transition from owner-occupier to a landlord. In some parts of the United Kingdom, you may also need to be formally registered with the local authorities;
• once you take out landlords’ cover, you should find that you obtain a range of protection in addition to what you may have previously considered being normal in the context of owner-occupation. That is partly why a specific landlords insurance policy is required;
• it is very important to remember that any landlord insurance policy might be put at risk if you fail to comply with the legal and regulatory framework governing the use of property for rental income;
• examples of that might include things such as gas safety inspections, electrical inspections and the provision of appropriate safety equipment.

make sure that you discuss in advance with your landlord insurance provider any situation where you plan to use your property for multiple purposes in addition to letting. For example, running a small workshop on the ground floor, whilst letting to tenants above, may be an issue for your cover unless you have discussed it with your policy provider.

What does let property insurance cover?

Although let property insurance occupies a particular niche in the wider property insurance market, there are still many variations in the detail of the cover offered by different policies. Bearing that in mind, the following are the typical broad headings of cover provided:

Buildings insurance

• typically, this can protect your property financially from the effects of damage from a number of insured events such as fire, floods, storms, earthquakes, vandalism, and theft;
• you may wish to bear in mind that the level of buildings cover that you may need should reflect the total cost (including architects’ and surveyors’ fees, searches, site clearance and the like) of rebuilding your property, rather than the amount of your outstanding mortgage or the sum you bought the property for;

Contents insurance

• landlord contents insurance. As the name suggests, landlord contents insurance covers your furniture, equipment and other moveable objects that constitute part of your property;
• if you are letting property on an unfurnished basis, strictly speaking, you may not need this type of cover included on your policy – but, before deciding to dispense with it entirely, it might be sensible to ensure that, what you consider to be fixtures and fittings (and hopefully therefore covered by your buildings policy) are also similarly seen as such by your insurance provider;
• there may still be moveable items in the communal areas that might need to be insured;

Landlord liability indemnity insurance

• if a member of the public or one of your tenants suffers personal injury or damage to their property, which they consider to be attributable to some failing on your part as the landlord – your failure to maintain the property in a safe condition, for example – they may sue you for damages;
• you should be clear that if a court happens to agree with their interpretation of events, you may find staggeringly high sums awarded against you;
• landlord liability indemnity insurance offers protection against such claims – typically offering cover of at least £2 million, and often considerably more;

Compensation for loss of rental income

• we have established that your let property is effectively a business asset – and one that relies on the income generated by your collection of rents;
• if a serious insured incident leaves the property temporarily uninhabitable, pending repairs and reinstatement, the rental income is at risk, and you stand to suffer a financial loss;
• let property insurance typically incorporates an element of compensation for such loss of rental income.

Unoccupied property

It is important to note that if your property stands unoccupied for more than 30-45 consecutive days, you may require additional protection in the form of unoccupied property insurance to ensure your property is fully protected.

Unoccupied property insurance is required because of the extra risks that a property may face when it is not occupied. This could be from thieves, vandals or perhaps a small problem that, left unfixed, may turn into something more serious over time.

Please read our Guide to Unoccupied Property which considers the relevant insurance issues in some detail.

Finding the most appropriate landlords’ insurance policy

In your search for let property or landlord insurance, you might be initially overwhelmed by the sheer choice of competing providers and their respective policies.

Here are a few tips that may help you identify those policies likely to be appropriate to your particular needs and circumstances:

• some effort is required – although the market for this type of policy is vibrant and highly competitive (something that is all to your good), you won’t be able to take advantage of that unless you look at a number of different options rather than simply renew your existing annual policy out of habit;
• you may wish to consider selecting a higher level of voluntary excess on your policy and potentially enjoy a discount on your landlord insurance premium;
• improving your property’s security might also be an option – some policies may welcome the fitting of things such as extra locks and/or regularly serviced intruder alarms (in other words, security measures that are above and beyond those stipulated within your landlord insurance policy documentation), and offer discounts in return;
• if you are letting your property on an unfurnished basis, you may wish to question whether or not you need to be paying for contents insurance – in some cases, you might be able to obtain, in some cases, a more competitive deal if you are only paying for buildings insurance and third-party liability cover;
• try to think in terms of cost-effectiveness rather than getting just the cheapest landlord insurance available – it can be very difficult to compare two policies based on their ticket price unless you have an understanding of the cover provided by the landlord insurance policies concerned;
• an illustration of this might be given by subsidence insurance, something that might be provided as standard by some policies (such as those provided by ourselves) but not by others.

We understand that as a busy landlord, you don’t want to spend substantial amounts of time thinking about your insurance cover. Yet treating the subject too lightly might cause you to miss some opportunities for potentially improving your cover whilst at the same time reducing your costs. So, thinking about some of the above points and others like them might be in your best interests.

What is the best insurance company for let property insurance?

There is no easy answer to the question. What you think is the best landlord insurance company for you may be completely different from that of another buy to let investor. That is because:

• your business insurance requirements may be completely different to that of another – for example, you may wish to insure a bungalow while another investor may be looking to insure a portfolio of let properties;
• as we have highlighted, not all landlord insurance policies are exactly the same – not only do landlord insurance providers vary in terms of price and the service they offer but the policy features and benefits may be different too;
• that is why it is important to compare insurance policies on a like-for-like basis.

Do you have any questions or need help?

Using the services of a landlord insurance broker, such as ourselves here at Cover4LetProperty, means that you can access a wide range of insurance policies from a number of insurance companies – leaving you free to cherry-pick the cover that is most appropriate for you.

Please call our friendly team on 01702 606 301. We’d love to help!

The renovation of an empty property – either one you already own or one which you intend to buy for that purpose – may serve two purposes:

• it contributes to the overall standard and quality of the country’s housing stock – an important consideration given the current pressures on the supply of decent housing; and
• it increases the value of your investment in the property – whether you intend to live there as an owner-occupier or subsequently letting it to tenants.

Indeed, local authorities are generally so keen to see empty properties returned to the housing stock at an improved standard that they may offer grants, loans, and plenty of advice to encourage property owners to those ends. An overview of such schemes was published on the 3^rd of November 2021 by the Gants Expert.

As the guide points out, councils may impose conditions on the subsequent resale of such a property or conditions about it being let to tenants.

Renovating a property

Whether it is your own home or a buy to let property, any renovation project is a serious matter, not least because of the expense and disruption. How often have you heard the complaint that it cost twice as much as you bargained for by the time the building works are complete?

And if it is a let property you are looking to renovate, it is not just the cost of the building works themselves, but also the rental income that is lost whilst tenants cannot be living there.

Planning permission and building regulations

When you engage in anything likely to be so extensive, time-consuming, and expensive as renovating an empty property, careful planning of every aspect of the work is clearly important.

High on your list of priorities may be the need to establish whether the renovations require planning permission and, if they do, that you make an early application for the necessary planning permission. Since your application may take some time to process, the sooner you are able to submit it, the sooner might the work actually start.

Starting the work without planning permission or failing to comply with the relevant building regulations may ultimately prove very expensive – if you are subsequently required to tear down and rebuild any part of the works.

Another critical element of preparation is insurance for the property during its renovation:

• inform your current home insurer or landlord insurance provider of your plans;
• if these involve relatively minor renovation and redecoration works, the fact that you have informed the insurer may simply be enough;
• on the other hand, your insurer may want to impose additional conditions or charge an additional premium for cover for the duration of the works;
• alternatively – and especially if the property may not be occupied during the building works – your insurer may impose conditions you consider unacceptable or even remove cover altogether;
• in that event, of course, you are almost certain to consider purpose-designed renovation insurance.

If you have bought a property to let or to eventually use as your own home with the specific objective of renovating it first, you may find it difficult even to secure renovation insurance.

Therefore, you might want to turn straight away to a specialist provider capable of providing this type of cover from inception – from the time you buy the property even though you have not lived in it yet or let it to your first tenants.

Why do I need specialist renovation insurance?

In response to that question, let’s take a look at your current home or landlord insurance.

Whether you own your own home or are the landlord of buy to let property, any insurer needs to know the use to which the insured property is put and any structural changes, modifications or extension that are built.

As the British Insurance Brokers’ Association BIBA) explains, these are “material facts”, which need to be declared to your insurer and your failure to do so may invalidate your home or landlord insurance.

Anything other than a simple redecoration of your property but one that involves building an extension or remodelling or refurbishment, therefore, must be declared to your insurer.

Specialist renovation insurance becomes necessary, therefore, because your existing home or landlord insurance is unlikely to provide the cover the property continues to need during renovation works.

Arranging the appropriate renovation insurance also helps you comply with one of the conditions almost certain to be attached to any mortgage you have on the property. This is the requirement to maintain adequate building insurance at all times – an almost universal condition, which is noted in guidance offered by Citizens’ Advice.

If your regular property insurance becomes restricted or lapses because of the building works in progress, therefore, renovation insurance continues to ensure that you are complying with the mortgage conditions.

If you are the landlord of let property, your hand may have been forced into commissioning some degree of renovation in order to meet local licensing requirements which may have been introduced in your area – especially if the property is a House in Multiple Occupation (HMO). The housing charity Shelter has published a guide to the different types of HMO licence and their conditions.

Renovation insurance is standalone cover but designed to provide temporary protection while building works are in progress. Once the latter are completed, you revert to your normal home or landlord insurance – reviewing the total building sum insured to reflect the increased value of your renovated property.

Because it is temporary cover, therefore, a distinctive feature of renovation insurance may be the ability to purchase it for periods of less than the full 12 months normally required for other forms of general insurance. If the works are scheduled to last just three or six months, renovation insurance may be tailored to cover just this period – yet also remains sufficiently flexible to be extended if unexpected delays or hold-ups occur.

A detailed guide to renovating and what renovation insurance you may need is found in the library of different property guides we have published here at Cover4LetProperty.

What does renovation insurance cover?

Although different policies may vary quite widely in the details, the following are some of the principal elements typically covered:

Building insurance

• you need to restore the protection of the existing building against the usual major risks, which are likely to be that much greater whilst the works are in progress – whether because of the added risk of flood damage, for example, if the existing building is no longer wind and watertight or because of any structural damage caused during the work in progress;
• in addition to the existing structure, some renovation insurance policies may also provide protection against loss, damage, or the need for reinstatement of the new works;

Contents insurance

• the contents of your existing home or let property are also under greater threat during any renovation works – especially since the premises are likely to be unoccupied and for there to be no one onsite for significant periods of time, especially at night;
• renovation insurance may restore the protection you need for the property’s contents;

Public liability insurance

• building works on your property may pose a risk of injury or property damage to passers-by, visitors to the site, neighbours, and other members of the public;
• if one of these third parties suffers a loss or injury, you may be sued as the property owner – and claims may be substantial;
• public liability insurance provides indemnity against such claims – typically for at least £1 or £2 million;
• bear in mind that your contractor’s own liability insurance typically doesn’t cover any claims against you – although the contractors working on your renovation works are likely to have arranged insurance cover for their own public liability, this does not extend to any incident for which you as the property owner may be held liable;
• In addition to public liability cover and safeguarding the existing structure of your property, there are other risks associated with the renovation works in progress – onsite, for example, you may have valuable materials, supplies, plant, machinery, and tools which are at risk of being stolen or vandalised.

Unoccupied property cover

One further important aspect of renovation insurance is its role in providing cover when your property is unoccupied for longer than a month or so – something that is almost certain to occur if extensive building works are being carried out and you need to vacate the home or temporarily vacate it of any tenants.

Even though there may be people working on the property throughout the day, there are significant periods of time when the property is empty – and these are times when it is likely to be at its most vulnerable.

When no one is living there, the need for minor repairs may go unnoticed and rapidly develop into major emergencies, whilst an empty building is especially vulnerable to squatters, vandals, arsonists and other intruders.

As a result of the heightened risks, most home and landlord insurance policies severely restrict the scope of cover, or regard it as lapsed entirely, once the property has been empty for longer than 45 to 60 consecutive days (the exact period varying from one insurer to another). Once again, renovation insurance plugs this gap by incorporating a valuable element of unoccupied property insurance.

Typical exclusions?

The exclusions incorporated into any insurance policy are every bit as important as those risks and perils that are covered.

Although each policy will vary in the details, renovation insurance typically excludes damage caused by the contractor (which should be covered under the contractor’s own insurance).

Usually, where structural works are taking place, no cover is in force for any part of the building that is either being constructed or worked upon (the works in progress, to which we have also referred to above).

The typical renovation insurance term

Whenever the builders are in, you are likely to have a carefully planned schedule of works that include a completion date. Delays in even the best-laid plans occur and building works are notoriously prone to unexpected delays.

To make sure that adequate protection remains in place however long the delay in completion, therefore, renovation insurance is typically flexible enough to allow extensions to the period of cover provided.

Since many such building projects are likely to be completed well within the full year, moreover, as we mentioned before, renovation insurance is also designed to offer the necessary short-term cover, which may be bought for periods of just three or six months, for instance, rather than the full 12 months customarily required for most other types of general insurance.

Next steps

The specialist, niche cover provided by renovation insurance, therefore, may provide the solution for ensuring that work in progress, the supplies, materials, and tools likely to be onsite, and the potentially substantial claims arising from your public liability are all suitably protected.

In short, if you are planning any renovation project for your home or let property, you might want to give careful thought to the need for renovation insurance. So, if you are about to embark on an exciting new renovation project for your property, just give us a call or get an online quote for renovation insurance today.

In the depths of winter, it might seem a long time to wait for those first welcome signs of Spring. But it comes around probably sooner than you think – the official start of the season is the vernal or spring equinox which, in 2023, falls on the 20^th of March.

With the new season also comes a list of jobs that you’ll need to do to keep any property you own properly maintained and in a good state of repair.

By acting now, you might head off more serious problems as the year progresses – maintenance issues are not going to resolve themselves. It will help maintain the value of your property and, if yours is a let property, enhance the kerb appeal for potential new tenants.

Here are our tips:

Roof

• recent winters have seen a succession of severe storms and research by the University of Plymouth suggests that some parts of the country may become stormier still – wherever your property is located, therefore, the roof will have taken quite a battering;

• now is the time to check for any loose or displaced tiles or slates – maybe with the help of a pair of binoculars and viewed from across the street or the end of the garden;

• it may be dangerous trying to make any repairs yourself, so hire a professional;

Gutters

• while they are up on the roof, ask the crew to clear out the gutters of the leaves, moss and other debris that inevitably accumulates there and replace any damaged or leaking gutters to prevent water ingress to the property itself;

Window and door frames

• where you have wooden framework around any doors and windows make sure it is in a good state of repair – filling and repainting where necessary to stop any further leaks and prevent rot;

Damp and condensation

• during the winter, persistent wet weather has meant that water will have found its way into every vulnerable nook and cranny – and water ingress may lead to damp and condensation, problems which can become both complex and difficult to resolve;

• damp, condensation, and the mould they encourage can also be damaging to health – so address the issues as soon as you can;

Plumbing issues

• continuing the inspection inside your property, check and repair any plumbing issues – from a persistently dripping tap to leaking radiators or problems with the central heating boiler, preventative maintenance can take care of long-term problems;

Smoke and CO2 detectors

• remind yourself of your obligations as a landlord not only to install smoke alarms and CO2 detectors, where necessary but also to ensure that the batteries are not dead and that they work properly – an up to date guide on the requirements for landlords was published on the 29^th of July 2022;

Yard or garden

• if your property has a yard or garden, things are likely to be looking rather the worse for wear after the winter’s storms – and fencing may have become damaged or blown down;

• a poorly maintained yard or garden – with broken or dilapidated fencing – is not only an eyesore but, if you are looking for tenants, it is likely to put them off;

• make sure to clean any slippery decking and jet wash the paving;

Spring cleaning

• finally, and especially if this spring heralds a change of tenants, give the inside of the property a thorough spring clean;

• you might imagine you already knew everything there is to know about spring cleaning, but the UK website Cleaner Cleaner has published a room by room checklist of literally hundreds of spring cleaning tips.

Spring brings a new chapter in the history of your property. Start as you mean to go on in keeping it in a good state of repair by completing our suggested checklist of spring property maintenance tasks.

If there’s one thing that strikes you when beginning your search for let property insurance, it’s just what a choice you have – there are so many products on the market.

So, how do you go about finding landlord cover that is suitable for your individual situation? Here are a few ideas that you may find helpful.

Why a careful comparison is essential

If you are a landlord, or soon to become one, insurance for your investment and for your buy to let business is typically a priority, so you are financially protected against the unexpected. Also, if you have a mortgage on your investment, then it may typically be a condition of you mortgage agreement that you always have landlord buildings insurance in place at all times.

Because landlord insurance (also known as let property insurance or buy to let insurance) is so important, it is essential to conduct a thorough landlord insurance comparison. Here are the main reasons why you may want to do that:

• you may have a good idea about the kind of cover you need – to safeguard the physical property and aspects of the business you are running – but there may be items you have overlooked or simply not thought about that a comparison might reveal;
• you might already have a particular insurer or a particular product in mind – or find yourself simply renewing the same policy year after year – but only a proper comparison exercise is likely to identify the insurers and the many different products that might suit your needs and circumstances; and
• then there is the question of cost – are you paying more than the market rate, or do you already have an attractive insurance deal?

Your buy to let insurance comparison is intended to reveal the answers to these and all your other questions.

How to go about making your comparisons

You may have identified some very good reasons for carrying out an insurance comparison – but going about it could be another matter altogether.

It is the kind of research you might be able to carry out yourself. Shopping around might help you spot the best buys, serve as a reminder for elements of cover you might have been overlooking so far, or identify products on the market you otherwise did not know about.

What are you looking for when you compare buy to let property insurance?

Although your aim is to compare like with like, there are subtle – and sometimes not so subtle – differences between policies. So, you might be looking at some of the following:

• at the heart of the typical landlord insurance policy is protection of the physical structure and fabric of the buy to let property;
• although most policies are likely to cover major risks such as fire, flooding, storm damage, impacts from falling objects and so on, the exclusions – subsidence, for example, is not included as standard on some other providers’ policies – may be something you want to consider;
• when it comes to the building, the total sum insured needs to be enough to cover the possible requirement for completely clearing the site and rebuilding the premises in the event of a major insured incident;
• some policies also include in their standard provisions cover which is absent from others – a case in point might be the risk of malicious damage carried out by your tenants;
• whether you have fully furnished the let accommodation or have items you own mainly in the communal areas, you might want to consider the contents insurance cover of your policy – and whether claims for theft, loss or damage are settled on a new for old basis or after the deduction of an allowance for wear and tear;
• because it is a business you are running, you are likely to want some form of protection against the loss of rental income if a major insured incident leaves the premises temporarily unfit for habitation – although many landlord insurance policies may offer compensation for such a loss, the maximum amounts payable may differ;
• a potentially critical component of your buy to let insurance is indemnity for claims alleging your negligence as the property owner or landlord – such claims from tenants, their visitors or members of the public may be substantial, so you might want to compare whether any given policy offers cover of up to, say, £1 million, £2 million or more.

Some let properties insurance providers may also provide other benefits – some offer defined paid-for legal expenses cover should they arise from one of the insured risks.

However, each individual policy will typically have its own limits, exclusions, and conditions.

Conducting a comparison of available policies for your buy to let property may seem the obvious thing to do, therefore. It’s likely to prove an effective and successful exercise, even if it might turn out to be more difficult than it first appears – a time to call in the professional insurance providers.

How price comes into the equation

It is possible to compare let property insurance on several levels but perhaps the most conventional is cost.

Looking directly at the ticket price of any let property insurance is perfectly natural but it may also present the greatest chance of distraction.

The price may not tell you much about the policy. To effectively compare let property insurance, it’s necessary to look at what you’re getting for your money – namely, the cover itself and the value for money it represents.

The government-sponsored website Money Helper offers a reminder that the cheapest insurance policy is not usually the one that covers all of your needs, so refining just what those needs might be and the ability of the market to meet them might be a matter on which to consult an independent insurance broker.

Certainly, the price will always be a factor if you are going to compare let property insurance but keeping that in perspective against things such as the cover, may be advisable. Only in that fashion are you likely to be able to decide what is going to give you the protection you need while keeping an eye on cost-effectiveness and value for money.

Remember unoccupied property insurance

It’s perhaps not always widely known that property insurance, including owner-occupier home buildings and contents insurance, and landlords’ insurance, typically contains special clauses relating to unoccupied property.

If your property is unoccupied for typically more than 30-45 consecutive days (depending on the insurer), you may find that your property insurance becomes invalid unless you have taken out unoccupied property insurance in advance.

It is something that may happen a little more easily than some would suspect – for example during property redecoration or if you are unlucky as a landlord and have extensive gaps between lettings.

Making the decision

At the end of the day, only you can make the decision as to which let property insurance is the most appropriate one for you.

Comparing the details of the cover provided as well as the conditions and exclusions should enable you to reach a decision – and it’s worth thinking, too, about some of the broader issues, such as:

Your tenants

• think about your specific business situation both in terms of the position today and how it might evolve in future – today, for example, perhaps you are letting exclusively to professionals but might in future consider moving into the student letting marketplace;

Look for options

• you might start to think about looking around in the marketplace for let property insurance policies that provide cover against both present and future risks;
• that exercise might prove to be a little time consuming, and you may save time by going to a specialist broker – such as ourselves – who will be able to provide landlord insurance advice based on our knowledge of several insurance providers;

Think about discounts

• many insurance providers offer certain discounts but some grant more – and more generously – than others, so be certain to make the most of those savings.

Relying upon and using your landlord insurance policy

It’s unlikely to be anyone’s idea of a good time but a careful reading of your insurance documents will be essential for any peace of mind that your policy continues to provide appropriate and adequate cover for your buy to let investment.

You are likely to find that landlords insurance policies vary quite widely in terms of the cover that they provide. This reflects the fact that:

• landlords and their properties may all be different – they come in all manner of types and sizes;
• different providers may place different emphasis on their perceptions of the various elements of risk relating to landlords’ insurance.

When selecting a let property insurance policy, as we mentioned before, you may wish to take special note of the provisions under headings such as:

• subsidence – not all providers offer this element of cover as standard;
• trace and access cover – without this you may find yourself responsible for the cost relating to repairs for damage caused by a tradesperson locating and fixing an insured issue;
• landlords’ loss of rental income – tenants moving out of your property because it has become uninhabitable following damage in a storm or fire, for example, may hit you in the pocket unless you have a landlord insurance policy which provides compensation, perhaps up to certain limits, in those circumstances;
• malicious damage caused by tenants – may not be provided as standard across the board but it is in some letting insurance policies so you may wish to look out for it.

It is clear that landlords’ insurance policies may vary significantly one from the other – like it or not, reading them through may be a good idea! Or, alternatively, please let us help!

Let us do the legwork for you

With so much at stake in the size of your investment in a buy to let business and the consequences of getting the insurance all wrong, you might want to consult experts in the provision of insurance for landlords and take advantage of our experience in making insurance comparisons on your behalf.

At Cover4LetProperty, we pride ourselves on having done just that since our business was founded in 1946. This means we can do all the legwork for you and provide what we consider are the most cost-effective solutions offering the specific cover you require.

So, if you need any assistance with choosing or comparing your landlord’s insurance cover, or you’d just rather talk to a ‘live’ person to get a let property insurance quote, then please feel free to get in touch, either via email or telephone number 01702 606301. We are always happy to help!