There are several reasons for carrying out a landlord insurance comparison:

• whether arranging landlord’s cover for the first time or comparing your existing insurance protection with other options available in the marketplace, you may be able to identify a more suitable and cost-effective solution;
• whilst your current policy may have been excellent when you took it out, inevitably things change and there may now be more advantageous options available to you;
• reviewing your landlord’s insurance need not inevitably lead towards changing your policy for cost-related reasons – it may be, for example, that your review will involve your examining the value of the contents of your property following a major refurbishment and, once you have done that, you may discover that the total insured value of your existing policy is insufficient to cover your requirements;
• sometimes, sitting down and finding the time to review your total position might also highlight risks that your current policy is perhaps not covering – by no means all buildings insurance automatically provide cover against subsidence, for example, and that might be something that you wish to do something about by identifying those policies offering such cover;
• only by comparing different policies will you be in a position to form a view on the appropriateness or otherwise of a particular buy to let policy;
• carrying out a landlords insurance comparison with a number of such quotes may give you the depth of knowledge that you may need to make an informed choice about your buildings and contents insurance cover;
• looking out for a buy to let policy that may offer cover for malicious damage by tenants, as standard, may also be something that might increase your peace of mind;
• knowing that a policy may offer trace and access cover may mean that you would not be landed with a repair bill for work required to repair damage caused by a tradesman searching for the source of another problem;
• ensuring that policy includes cover for loss of rental income may help to maintain an income stream should your tenants have to move out of your property in a situation where damage from an insured event (fire, flooding, storms etc) renders it uninhabitable;
• during your landlord insurance review and comparison, you may also be thinking about your exposure to tenants and guest-related claims – these might arise in situations where someone has sustained injury or damage to their property as a result of your property and have decided to sue you for compensation as a result;
• should you be found liable, you may face very significant costs and ordered to pay substantial compensation to the injured party or parties that is why it is important to be sure that you are satisfied with the level of the third party liability cover provided by your insurance policy;
• checking the circumstances relating to unoccupied property – where additional cover may be required if your property is unoccupied for periods of 30 consecutive days or longer may help you avoid a situation where you claim only to find that your standard cover had lapsed because your property had been unoccupied for longer than the allowed number of days;
• remembering during your landlords’ insurance comparison that some providers may offer premium discounts in circumstances where you agree to accept a higher voluntary excess on your policy.

Conducting a comprehensive review and comparison of the various landlord insurance policies might take up a good deal of your time – but, in the final analysis, may prove to be time well spent if it results in your having more suitable or cost-effective cover.

Top reasons for using a landlord insurance broker

If you are put off by the often time-consuming prospect of comparing landlord insurance premiums, you might instead prefer to enlist the services of experts such as ourselves here at Cover4LetProperty and let us do all that hard work on your behalf.

Seeking our assistance as independent insurance brokers you may immediately widen the number of options open to you when it comes to buying cover.

With our help, you may cut through some of the jargon and complexity of competing landlord insurance policies to identify those most likely to be suitable for you and your business needs – at a competitive market rate. By consulting an independent broker:

• thanks to an expertise and experience often built up over many years in the business, a broker may be best placed to match your requirements with some of the most appropriate policies available, and at an attractive premium price;
• you can then make your choice between those policies which may be most relevant to your situation;
• because of their special relationship with the insurance companies themselves, brokers may well have access to insurance deals that are not available to members of the general public – that means that even if you do have limitless amounts of time to compare all that the insurance marketplace has to offer, you may still miss out on some of the most cost-effective deals;
• at Cover4Let property, we can help provide you with the information you need to make an informed choice on the most appropriate cover for your own unique needs;
• some brokers, such as ourselves, may be able to provide you with the option of an online or a telephone service if you prefer to speak to a real person rather than the anonymity of the internet;
• policy details are emailed directly to you – a particular boon if you need details of your cover in a hurry.

Wanting to get the most appropriate levels of cover for your business asset is understandable given the importance of the contribution it may make to your livelihood.

Getting help from a broker may help ensure that your comparison and eventual choice is from policies that most closely match your requirements.

Listed properties may come under a number of different listing categories. To make matters a little more complicated, the listing categories in England, Wales, Scotland and Northern Ireland may all have differences to each other.

Broadly speaking, we will be able to offer cover for many listed properties. However, the nature of such property means that each individual case may be very different based upon the age of the building, its generic type, where it is located, its value and so on.

For that reason, if you are looking for cover for a listed property that you let, we may ask that you please contact us for specific advice as opposed to merely issuing an online quotation. This is perfectly normal and should not be construed as cause for concern or an automatic indication that we are about to decline to cover your property.

In the meantime, let’s look a bit more about what listed buildings are.

Listed buildings explained

Buildings may be listed for several reasons and fall into different listing categories as a result. Typically, explains Historic England, a building is listed to recognise and celebrate its special architectural and historic interest.

Critically, listing also brings the building under special consideration as far as local planning permissions are concerned – so that it can be protected for generations to come. The older a building and the fewer the remaining examples of the type of architecture or history it represents, the more likely it is to be formally listed.

Landlord insurance for listed buildings

Listed buildings are by their very nature and definition buildings of special or historic interest and many are likely to be of non-standard construction.

Insurance for any property beyond the scope of what might be considered normal or standard naturally attracts particular attention on the part of the insurer. Typically, consideration needs to be given on an individual case by case basis, considering the building’s age, location, and of course, its classification by the listing authority.

The use of the building may be severely restricted by planning regulations. Plus, the non-standard construction and requirements related to materials and building methods are likely to make loss or damage to the structure more expensive than usual to repair.

It is worth stressing that if you have a listed property, it is particularly important that you have an in-depth understanding of the cover provided by your buildings insurance policy. That is because, in the event of a major disaster, the listing conditions and local authority planning regulations may insist that you rebuild the property exactly as it was before the loss or damage and that the appropriate, traditional materials and techniques are used – even though they may be very difficult to source today.

What that means is that your rebuilding costs may be particularly high, and you need to be sure they are covered by your policy.

Do you cover thatched properties?

We do not offer cover for thatched properties – including those that are also listed buildings. Although this is probably not the forum in which to expand fully on the reasons for declining such proposals, we would nevertheless welcome your enquiries – and will put you in touch with an expert policy provider known typically to arrange cover for this type of roof.

Next steps

If you have a listed property, why not contact us today on 01702 606 301 so we can discuss the most appropriate buildings insurance solution for you. We will be delighted to help!

If you are the landlord of buy to let property, you will know only too well that there is a raft of legislation principally designed to ensure you maintain and respect the health and safety of your tenants.

Critically, this includes legislation relating to smoke and carbon dioxide – potential killers for anyone inside your let property at the time of an accident or emergency – and you will do well to keep a careful watch on any changes to laws that are currently under review – and which vary to some degree in England, Scotland, Wales, and Northern Ireland.

Smoke inhalation and carbon monoxide poisoning: the symptoms

The flames from a house fire are dramatic, of course, but it is the smoke that kills – with the majority of deaths in domestic fires resulting from smoke inhalation, says City Fire Protection.

Carbon monoxide (CO) is even more dangerous because it is colourless, tasteless, and odourless, and can be even more deadly. When inhaled, the gas replaces the oxygen in your blood, depriving your brain, heart, and other vital organs of the oxygen they need – so that you can lose consciousness and suffocate within minutes.

Not for nothing have we previously described carbon monoxide as “the silent killer”.

Exposure to carbon monoxide poisoning can also give you problems concentrating and provoke a loss of memory, according to the NHS, which notes that there are still around 60 deaths a year in England and Wales caused by CO poisoning.

Landlords and the law

With these clear and present dangers posed by smoke and carbon monoxide, the law looks to landlords to take precautions designed to protect their tenants from harm.

Since the 1^st of October 2015, the Smoke and Carbon Monoxide Alarm (England) Regulations have required every landlord of private rented accommodation in England to:

• install smoke alarms on every floor in any let flat, house or House in Multiple Occupation (HMO) – with a penalty for non-compliance of up to £5,000; and

• install a carbon monoxide detector in any room in which there is a fire burning – or capable of burning – solid fuel, including rooms in which there is a fireplace that has not been blocked off (so that tenants could still choose to light a fire there).

Landlords are made specifically responsible for testing and confirming that smoke alarms and CO detectors are in good working order at the beginning of any new tenancy, points out the National Residential Landlords’ Association (NRLA).

Bear in mind, however, that the English government launched a consultation on the prospects for stiffening these regulations still further. The results of that consultation – which closed in January 2021 – are still under consideration and may yet lead to further changes in the law.

Scotland, Wales, and Northern Ireland

In Scotland, the law is stricter still. With effect from February 2022, not only rented accommodation but every home must have at least one smoke alarm fitted in the living room, another in the hallway or on the stairs, a heat alarm in the kitchen, and a CO detector in any room in which there is a solid-fuel fire or fireplace.

An amendment to the Renting Homes (Wales) Act 2016 will introduce a requirement for landlords to install CO detectors in let property in Wales.

In Northern Ireland, amendments to the Building Regulations (Northern Ireland) 2012, make it a requirement for CO detectors to be fitted in any home – including let property – in which a solid-fuel burning fire is newly installed.

Your let property – the law

It is not only smoke alarms and carbon monoxide detectors that you might need to worry about as a landlord. In an article on the 25^th of August 2020, Propertymark identified some 145 laws and more than 400 regulations with which you must comply if you are a private sector landlord in England and Wales:

• in addition to smoke alarms and CO detectors, you must also arrange annual gas safety inspections by a registered Gas Safe engineer – a responsibility about which an alarming one in three landlords are apparently unaware, according to Propertymark;

• ensure that all furniture and furnishings meet the fire safety standards laid down in the Furniture and Furnishings (Fire) (Safety) Regulations 1988 – confirming that they pass the “match flame” resistance and “smouldering cigarette” tests of these regulations;

• with effect from the 1^st of April 2021, landlords must also arrange an electrical safety check at least once every five years;

• similar regulations on electrical safety checks are also in force in Scotland;

• landlords also have a statutory duty to assess and control the risk of Legionella to tenants in their let property – a pneumonia-like disease caused by a bacteria usually found in infected water supplies;

• Legionella control measures might include flushing water systems, sealing pipework, and maintaining stable water temperatures.

When appraising your compliance with a host of health and safety laws and regulations designed to protect your tenants, therefore, remember to consider fire safety, carbon monoxide detection, gas and electrical safety, and the potential risks of Legionella contaminating any water supply.

Please note that the information within this blog is based on our current understanding of the law. Laws can and do change. If you are unsure of any legalities relating to health and safety in a let property, refer to the Government website or contact your local council.

The most recent news headlines continue to reflect a housing market given renewed vigour following its release from the lockdowns of the pandemic. Here is some of the latest property news …

Government issues new Eviction Mediation guidelines to landlords

The end of lockdowns has also meant the resumption of landlords regaining possession of their property through evictions.

In an effort to ensure fairness for landlords and tenants alike in this post-pandemic period, the government has launched a new eviction mediation service, reported Landlord Today on the 1^st of June.

The service is free for either landlord or tenant to use in the resolution of any dispute and mediation will be provided by an independent and entirely neutral mediator.

Access is designed to be facilitated much quicker than court action, with a hearing granted within about 10 days of the request. If both parties agree to the mediator’s proposed solution, the jointly signed agreement is submitted to the courts for approval and direction about the specific action to be taken by both parties.

The UK’s best places for eco-friendly homes and lifestyle 

In an article on the 1^st of June, Property Wire published the results of a recent survey identifying the most eco-friendly towns and cities in which to own or rent a home.

The survey classified the eco-friendliness of the towns and cities into three main categories – “future forward” communities combining both eco-friendly homes with a sustainable lifestyle; places with eco-friendly homes; and those offering a sustainable lifestyle.

The study looked at elements such as how many residents now eat less meat, their recycling efforts, growing their own food to how many homes have smart meters and electric car charging points as well as double glazing and extra insulation (and less common additions like biomass boilers and wind turbines).

Future forward

• towns and cities combining both eco-friendly homes within a sustainable environment put Edinburgh in first place, followed by Plymouth, Norwich, Southampton, and Cardiff;

Eco-friendly homes

• the most eco-friendly homes were found in Norwich, Cardiff, Glasgow, Liverpool, and Edinburgh (in that order); and

Sustainable lifestyles

• the most sustainable lifestyles were found in Plymouth in first place, followed by Edinburgh, Southampton, Norwich, and Nottingham.

£1bn of equity released by homeowners in ‘middle-class stampede’

The Daily Mail newspaper on the 25^th of May identified what it described as a “middle-class stampede” as thousands of wealthier, older homeowners have taken advantage of the current surge in house prices by arranging equity release deals.

Unlocking the capital that has built up in their homes in this way, the homeowners achieved more than £1 billion in equity release deals during the first three months of this year – up 12.8% on the same period last year. The average amount of equity released in this way was a very healthy £103,710 – more than 25% higher than the average equity release of £83,000 during the same period last year.

House prices have risen by more than 10% in the 12 months to the end of March, according to the latest figures released by the Office for National Statistics (ONS).

Housing market on course for busiest year since global financial crisis

The current heat in the housing market is fuelled by practically unparalleled levels of demand, according to a report by the online listings website Zoopla on the 26^th of May.

House hunters newly released from successive lockdowns are currently looking for more space in new homes and are encouraged in their search by the continuation of the stamp duty holiday introduced nearly a year ago now.

These factors have come together in producing an estimate of some 1.5 million housing transactions this year – a volume of activity that is a whopping 45% up on transactions completed last year.

This marks a level of activity last seen back in 2007 and will make 2021 one of the busiest years yet, says Zoopla.

There are many reasons why you may have an unoccupied property:

• your property may be under renovation;
• the property itself may be the subject of legal proceedings during probate or the terms of a divorce settlement;
• you might be working abroad for several months;
• you may be a landlord with a void in your tenancy or while the property is being refurbished.

These are just some of the reasons for your property becoming formally “unoccupied” as far as your insurer is concerned – a situation which might prejudice, or at least severely restrict the level and nature of any existing property insurance.

When is a property classed as unoccupied?

In the context of insurance cover, any property without someone residing in it for a set number of consecutive days may be classed as unoccupied.

Typically, however, the term is not applied to properties that are only temporarily unoccupied. That might cover situations such as annual holidays or, for let properties, short gaps in occupancy whilst there is a changeover in tenancies.

A residential property insurance policy will typically stipulate a maximum number of consecutive days (often in the range 30-45) that a property may sit temporarily unoccupied and remain fully covered under the terms of the existing property insurance policy before it makes the transition to being regarded as formally unoccupied.

After those 30-45 days (an interval which varies from one insurer to another) the protection offered by your current insurance policy may be restricted or even considered to have lapsed altogether. That is when you may need to consider alternative, specialist, standalone unoccupied property insurance.

Why do insurance providers care?

Insurance is all about the management of risk. And the simple fact is that an empty and unoccupied property is vulnerable to great risk than a property continuously occupied by your tenants.

There are several reasons for that heightened risk, the most notable of which are:

• an empty property is like a magnet for all manner of unwanted attention – from intruders to thieves, squatters to vandals, and even arsonists;
• furthermore, when your property is unoccupied, there is no one at home to spot what might start as a relatively minor need for repair or maintenance before it develops into a full-blown emergency causing thousands of pounds worth of damage.

Because of these heightened risks, some insurers restrict the level of cover extended to your property once it has been unoccupied for longer than 30-45 consecutive days – so that only basic protection against fire, earthquakes, and lightning strikes remain. Other insurers might even regard all cover to have lapsed altogether.

That is why it is important you check with your insurance provider or look at your policy documents, to see what your position will be if your property becomes empty.

Whether by choice or for reasons largely beyond your control, if your home or let property remains unoccupied for that prescribed period, you may need unoccupied property insurance.

In the event of a claim, how would the insurers know the property wasn’t occupied?

However tempted you might be to claim that your property was occupied in the event that you want to make a claim, it is far from a sensible idea to try to hoodwink your insurer if the place was, in fact, unoccupied.

Insurance company claims departments invariably employ sophisticated means for checking and confirming whether your property was occupied at the time relevant to any claim you are making. If it is discovered that the property was, after all, unoccupied, not only is your claim likely to be rejected but you might even be considered guilty of insurance fraud.

As the Association of British Insurers (ABI) points out, insurance fraud is a serious offence. You could face criminal prosecution, a fine, or even a prison sentence. At the very least, any conviction is going to make it considerably more difficult to secure any kind of insurance in the future.

Finding unoccupied property insurance

Just as you would before arranging any other kind of insurance, it is worth shopping around for your unoccupied property. Or, to save yourself and time, please use our online unoccupied property insurance quote system (or please feel free to give us a call) to find the most appropriate empty property insurance for you.

Finally, it is not uncommon for unoccupied property insurance policies to require that you arrange for regular inspections of the empty property – so that routine maintenance can be carried out, nipping in the bud any problems which may become worse over time, and, of course, checking the security of the premises to act as a deterrent to would-be intruders. Make sure you understand your obligations under the terms of your cover – or speak to your insurance provider for clarification.

More questions or need help?

Then please call us on 01702 606 301 – we’d be delighted to help.

Further reading: Guide to unoccupied property.

If you own buy to let property, landlord insurance is imperative. In fact, if your property is mortgaged, your loan provider may typically require you to have at the very least buildings insurance to protect your financial interest in the property.

So, where can you buy landlord insurance? And how do decide which landlord insurance – or buy to let insurance, as it is also known – is the most appropriate for you?

Where can I buy landlord insurance?

The question typically boils down to three main options:

Potluck

• take a guess and buy the first policy you see from a financial institution or comparison website – you’ll probably not discover whether you made the most suitable choice until you need it;

Do the legwork

• you could take a considerable amount of time and effort to familiarise yourself with all aspects of the landlord cover marketplace and then evaluate lots of different policies using your newly found skills; or

Consult the experts

• probably the most efficient and time-saving way lies in consulting an independent insurance broker – such as ourselves here at Cover4LetProperty – and letting the experts make a comprehensive comparison on your behalf to arrive at a suitable policy at a competitive price.

Whatever way you decide to source your cover, what do you need to consider when choosing your landlord insurance.

What are the key things to look for?

Essentially, you will need to look at what a policy is providing and how relevant that is to your individual landlord business. And that, in turn, means carefully comparing several potentially suitable policies.

It is also important to read and understand the terms and conditions associated with the policy. These may vary depending on whom your policy provider is.

By way of example, here are just a few of the key areas in which various – apparently similar – policies might vary one from another:

• subsidence cover – unfortunately, it is no longer safe to assume that this will be included automatically, as standard, in every buildings policy, so, when you are going through a let property insurance comparison, you may find that it is included on some policies but not others;
• discount opportunities – it’s probably fair to say that many policies offer discounts in return for particular decisions and choices on the part of the policyholder, however, some may be far more forthcoming than others in that respect;
• trace and access cover included as standard – this basically provides protection against situations where a tradesperson is forced to cause damage to your property while searching for the origin of a problem, and not all policies will pick up such costs;
• all tenant cover – some policies might exclude certain categories of tenant including groups such as students, DSS recipients and asylum seekers. So, if you plan to let to these categories or simply wish to have complete freedom of choice, you may want to look for all tenant cover;
• flexible voluntary excess – some policies might offer you a discount on the premium if you opt for higher levels of voluntary excess on the policy, but bear in mind that not all providers will do so;
• options for loss of rental income – there may be provision for compensation of any loss of income arising from circumstances where you are forced to keep your property unoccupied following a problem caused by an insured event (e.g. flood or fire); and
• malicious damage by tenants – once again, this is not necessarily commonplace, with some buy to let insurance policies offering such cover as standard whereas others do not.

How can I save money on the cost of my policy?

Whether or not you seek the expert advice of an independent insurance broker, perhaps the most obvious step to take is to make sure that you have looked around at a number of options and have found one that you believe to be cost-effective. That is the comparison where you are likely to be in search of value for money for a policy that matches your particular needs and circumstances.

With value for money in mind, you might also want to take up the offer of any discounts extended by certain providers. We have already mentioned the possibility of reduced premiums, for example, if you agree to a higher voluntary excess. But you might also want to compare the value of discounts given in return for a no-claims history or by taking additional security precautions to help keep your property safe.

I have read a lot about flood cover issues – what is the reality?

There is little doubt that the ever-increasing numbers of flood claims are proving to be a serious financial challenge for the UK insurance industry. The total cost of settling claims arising from flood damage during the winter of 2020, for example, is estimated to have been more than £360 million.

As a result of this, increasing numbers of providers may not offer flood cover as part of their basic policy or may not do so in circumstances where your property is located in a known high flood-risk area. So, you might first want to check the level of risk associated with your property – through a simple postcode search of the official Government website.

In other cases, such cover may be available but might be subject to a separate policy, special terms or increased premiums (perhaps all three). This is a subject on which specialist advice might be sought.

Next steps

We have considered just some of the differences to look out for when searching for suitable landlord insurance. Here at Cover4LetProperty, we remain only too happy to expand on any of the above in more detail and discuss further questions and queries with you. You can also get a quote online or over the telephone.

Your property constitutes a significant investment of your capital, and it only makes sense to do what you can to protect that. Taking note of some of the above points and others like them might help you to do so.

As the UK emerged from a long-awaited escape from successive coronavirus lockdowns but faced continued foreign travel restrictions, the chosen holiday became the staycation. So popular has this become that demand for self-catering holiday homes has soared and by the 26^th of March 2021, the Independent newspaper revealed that would-be holidaymakers were struggling to find vacancies to book.

Whether you reserve it for your own holidays or plan to let it out to some of those many visitors, you are almost certain to need holiday home insurance – and here’s why:

• much as you might like it otherwise, at the end of the day a holiday home is just that – a second home to which you retreat when the opportunities arise, but where you do not live the whole year round;
• there are likely to be significant periods, therefore, when your holiday home stands empty and unoccupied;
• an empty property (i.e. one that is still furnished but has no one sleeping there) is significantly more vulnerable to loss or damage than one that is lived in all of the time;
• the need for repairs may go unnoticed when there is no one at home, and an unoccupied home tends to attract all manner of unwanted attention from the likes of burglars and other intruders, vandals and even arsonists;
• as our guide to UK holiday home insurance makes clear, therefore, the specialist policies we arrange typically can take into full account these periods when your second home is likely to stand empty and provides appropriate cover accordingly;
• with suitable holiday home insurance in place, therefore, you may retain the comprehensive cover for both the building and its contents even when your property is unoccupied;
• if you are buying the holiday home with the help of a mortgage, the lender typically insists that suitable insurance remains in place at all times, including periods when the property is unoccupied;

Letting your holiday home

• for many holiday home owners, a second home also offers the opportunity for earning a little extra cash from short-term lettings to visitors and holidaymakers when you are not using it;
• indeed, HM Revenue and Customs (HMRC) grants certain tax concessions if your holiday home is made available as a furnished let for a minimum period of the year – as explained in an advisory note published on the 6th of April 2021;
• when your property is let on such an occasional, short-term basis, however, you are no longer the sole owner-occupier, nor yet a full-time landlord in the ordinary sense of the term – so, neither standard home insurance, nor regular landlord insurance is likely to meet your need for cover;
• instead, specialist UK holiday home insurance is specifically designed to meet precisely that dual-purpose use of your second home;
• in addition to the standard risks of loss or damage to your property, some (but not all) policies may also extend cover to damage – malicious or otherwise – caused by the tenants to whom you have temporarily let your holiday home.

If you are the fortunate owner of a holiday home in the UK this coming summer – or, indeed, at any time of the year – therefore, you might want to carefully consider your need for specialist UK holiday home insurance.

What is a UK holiday home?

A holiday home is usually regarded as a property you own and which you use exclusively for your own recreational purposes – or those of close family members – during a few weeks each year.

A UK holiday home could also be one that you plan on letting out to paying guests.

As far as holiday home insurance is concerned, you might want to bear in mind that some policies differentiate between a holiday home used exclusively by you and one you run as a business (by letting it to paying guests).

An important distinction lies in the fact that a holiday home is not your normal place of domicile. Although you may be liable for local taxes and charges, you will not usually be on the local electoral register and the property will not be occupied by you for 365 days each year.

What does holiday home insurance cover?

If you have arranged any kind of property insurance before – on your own home or as a buy to let landlord, for example – you will recognise the principal elements of cover incorporated in holiday home insurance:

The building and its contents

• central to that cover, of course, is the protection of the building and its contents against such major and potentially disastrous risks as fire, storm damage, flooding, escape of water, impacts, vandalism, and theft;
• it means anticipating a worst-case scenario in which the whole property is destroyed and needs to be rebuilt, with the total building sum insured equivalent to that cost;

Landlord insurance

• you may also need the provision of cover during those times when your holiday home may be let to paying tenants;
• there are different risks when the property is occupied by tenants rather than yourself – not least your liability as a landlord in the event of one of them being injured or having their own property damaged and claiming against you for compensation;
• your UK holiday home insurance needs to indemnify you against those liabilities as a landlord;

Unoccupied property insurance

• holiday homes in the UK are likely to spend significant periods of time when they are unoccupied – either by you or by short-term tenants;
• recognising the special risks associated with an empty property, UK holiday home insurance also covers such periods.

Whatever kind of holiday home you own in the UK and however you intend to make use of it, therefore, a specialist provider of this distinctive insurance product is well-placed to help you find the most suitable cover.

Further points to consider

In some cases, holiday homes may be subject to special conditions, potentially raising several further issues:

• they might typically be positioned in locations that are rather more prone to flooding than might be the case with permanent residences – if your holiday home is located on the coast, alongside a river or adjacent to a lake, for instance, there may be special provisions relating to flood insurance cover;
• you may find that the cover levels for your contents are more restrictive due to the fact that your property will sit unoccupied for much of the year – or, with paying guests, the fact that your contents may be more liable to damage;
• you may, at times, be required to ask someone in the area or a local property management agency to periodically inspect your holiday home when you’re not there in order to spot and arrange for the repair of any problems that have arisen;
• your policy will typically require you to be in full compliance with the law and local authority regulations – it is worth noting that these can be significantly different depending upon whether the property concerned is in England, Scotland, Wales or Northern Ireland.

How to find the most suitable UK holiday home insurance

As we have seen, holiday homes in the UK call for a special type of property insurance.

The product in question is appropriately enough called UK holiday home insurance and is specially tailored to suit your use of the property as a second home or one that is let to visiting holidaymakers.

So, if this is the insurance you are looking for, how do you go about obtaining the most suitable cover?

Rely on the experts

As at the time of writing, there are almost half a million second homes in the UK – a figure that has grown by more than 30% in the past five years alone.

Not only are there numerous holiday homes dotted around the country, however, but there are many different types of property fitting that purpose – and some may be used solely as the owner’s holiday home, also used to accommodate short-term tenants during holiday seasons, or even left empty and held as a longer-term investment.

UK holiday home insurance, therefore, needs to be tailored to suit each one of these different types of holiday home and the uses to which the property is put. The insurance needs to recognise whether it is a second home for the exclusive use of the owner, a holiday home that is also occasionally let to tenants, or a property that stands empty for most of the time.

Matching your particular needs and circumstances to the appropriate UK holiday home insurance, therefore, may call for the experience and expertise of a specialist broker – such as ourselves here at Cover4LetProperty.

Just as the British Association of Insurance Brokers (BIBA) points out, our role as an independent broker means that we put your interests first and foremost, looking for the most suitable insurance cover at a competitive rate, to ensure that you receive good value for money.

One of the biggest – and most expensive – mistakes made by many a landlord is avoiding or skimping on conducting an inventory at the beginning and end of each and every tenancy, says the Property Investment Project.

Get this critically important initial step wrong and you could find yourself seriously out of pocket because of the need for expensive repairs and reinstatement. Or, involved in an interminable wrangle with outgoing tenants about the amount of the deposit that must be returned.

What is an inventory?

An inventory lists and describes the current condition of everything in the let accommodation. And everything means everything – from the walls to the floor and ceiling, from cupboards to kitchen units, doors, and windows, from bathroom fittings to furniture and even the state of the garden and any outbuildings.

A good inventory is a comprehensive and extremely detailed document – and one that is typically illustrated by photographs that back up descriptions about the contents of the let property and the condition of individual items, including their general cleanliness.

Don’t be tempted into thinking that an inventory only needs to cover items such as the furniture in the let premises or the condition of crockery, cutlery, and pots and pans. In fact, it covers everything from floor to ceiling:

• the flooring and floor coverings such as carpets or linoleum;
• the condition of any windows and the curtains or blinds at those windows;
• the walls and any coverings on the walls, such as wallpaper;
• the ceiling;
• the paintwork;
• the condition and serviceability of any gas or electrical appliances;
• furniture – including chairs, tables, sofas, beds, and other items; and
• kitchen appliances, such as cookers, fridges, microwaves, washing machines, any other appliances and such items as crockery, cutlery, and pots and pans.

A simple model inventory is suggested by the housing charity Shelter, but such documented agreements may be considerably more detailed and complicated.

In short, the inventory provides a detailed snapshot of the contents and condition of the let accommodation the moment a tenant moves in.

The landlord – or the landlord’s agent – and the tenant go through the document together and agree its contents.

That initial inventory may prove critical in resolving any dispute at the end of the tenancy – since the inventory provides evidence of the condition of the let property the moment the tenant moved in, explains The Tenants Voice. It is as important to you, the landlord, as it is to the tenant, therefore, that the inventory is verified by both parties as soon as possible – and a copy of the signed document also given to your tenants.

Why is an inventory important?

As already mentioned, the inventory provides a detailed snapshot of the condition of the accommodation, and its contents, the day on which the tenant moves in.

Establishing that base has become even more important since the introduction of the Tenancy Deposit Protection Scheme, which requires landlords to place the deposit generally taken from the tenant at the beginning of the tenancy with a government-approved and independent third party.

The reason for taking a deposit is to give the landlord a degree of security in the event of breakages and damage during the course of the tenancy. Establishing the base starting point for the condition and contents of the property is, therefore, critical.

The inventory prepared and agreed by landlord and tenant at the beginning of the tenancy is then compared with a similarly detailed inventory at the termination of the tenancy in order to determine any damage and breakages for which the tenant may have been responsible. This, in turn, is used to determine any percentage of the initial deposit to be withheld by the landlord to cover any damage or breakages.

Once the landlord and tenant agree on how much of the deposit is to be returned, the appropriate sum is released by the independent deposit-taking company.

Even when there is agreement on any amount to be deducted from the deposit, you need to provide estimates for the remedial work and inform the tenant in writing of the sum to be deducted. If you are unable to agree the final inventory check with the tenant, the deposit remains in the hands of the Tenancy Deposit Protection agents until the dispute is resolved – if necessary, using the scheme’s free Alternative Dispute Resolution service.

Why is it important to keep inventories up to date?

Many tenancies may last more than a few years, of course, and any initial inventory is likely to become outdated through normal wear and tear of the premises and any damage or breakages caused by the tenant.

For the avoidance of any eventual doubt and in order to monitor the way in which the tenant may be using the let property, therefore, it is in both parties’ interests for the inventory to be updated regularly – say once a year. You might need to remember, however, that you need to give the tenant reasonable notice of any request to visit the premises in order to conduct an inventory.

When creating an inventory – whether the initial inventory or an update – it may be useful to take photos of any large items so that there is proof of what the item looked like. These can be attached to the inventory so that the tenant can agree the condition of the item or items.

It may be some time – especially in the case of a long-term tenancy – between agreement on the initial inventory and the changes in the condition and state of the let property on termination of the tenancy.

The longer that period, the greater the potential for disputes between landlord and tenant on responsibility for any changes in the condition of the property.

Regularly updated inventories, agreed by both landlord and tenant, therefore, may help to dispel this potential for disagreement at a later date.

When you acquire a buy to let property, your main focus may be on the fact that is in an asset that may contribute to a comfortable retirement for you. Or perhaps it is nest egg that you hope may help to fund your children through university or get them onto the property ladder?

While it is exciting making plans and potentially watching your investment work hard for you, it is important not to forget the less ‘glamorous’ side of being a landlord and arranging things such as your buildings insurance for landlords. It may be a very important part of protecting your precious asset.

Rather than seeing let property cover as just another bill to pay, you may wish to bear in mind that having landlords insurance may be necessary to:

• abide by the terms of your mortgage;
• and protect your own pocket.

Your mortgage agreement may require you to have landlord buildings insurance

If you have a loan secured on the buy to let property, it may be a condition of that mortgage that you arrange suitable buildings insurance for landlords. This protects both your and their financial interests in the property.

For example, if the property is uninsured and goes up in smoke, the lender would be left with virtually nothing to provide security for the loan. And you would be left making monthly mortgage payments for a property that no longer existed.

Landlord’s building insurance is designed to step in and pay the costs (up to the agreed sum insured) to rebuild your property.

When you took out the mortgage, the valuation you had done may have specified a sum insured required for the purposes of buildings insurance. Note that this amount may typically include the costs of clearing the land, should the property be completely razed to the ground. See our section on this further down the page: What is the buildings sum insured?

What does buildings insurance cover?

Just about any buildings insurance (whether owner-occupier home insurance; landlords insurance; or unoccupied property insurance) typically covers the structure of the building (so walls, roof etc) as well as the fixtures and fittings.

The fixtures and fittings are things like fitted kitchens, built in wardrobes etc – basically, anything that would be left inside your property if you turned it upside and shook the contents out!

A basic buildings insurance policy may typically include some or all of the following elements of protection:

• damage to your property from events such as flooding, fire and smoke, storms and earthquakes;
• theft and vandalism.

What it is important to note is that the hazards covered by a policy may vary, depending on the insurer. For example, subsidence forms a standard part of all of our landlords insurance policies. Some other companies, however, do not include this cover as standard, and they will charge you to have this element of protection included if you want it. (This also applies to many owner-occupier policies too, so always check the cover).

Your needs for landlords’ insurance will depend upon your individual circumstances. What you consider a good landlord insurance policy, therefore, may provide you with financial protection against the following (either as standard part of the cover or as an optional pay-for add-on):

• damage to the structure of your building;
• damage or destruction of your fixtures and fittings;
• ditto for the contents plus their theft (see next section: Buildings contents insurance);
• third party public liability claims;
• loss of rent cover (where this arises from an insured risk). This is where, should your tenants have to move out of your property following an insured event (such as a fire or flooding) you will receive up to a pre-agreed sum from us in lieu of your lost rent;
• some forms of legal fees (again, if they relate to an insured risk);
• malicious damage caused by tenants;
• trace and access cover.

Typically, a policy won’t always cover things such as tenants that depart suddenly leaving large rent arrears or tenants that you’re trying to evict. So, if you incur legal expenses in either situation and/or an associated loss of rental income, your policy typically won’t cover it.

Buildings contents insurance

You may also require buildings contents insurance if your let property is furnished or has communal, furnished areas (such as in an HMO). Speak to us if you are unsure as to what level of cover you require.

Typically, every sensible landlord wants the protection of insurance and equally typically, and no doubt you will be looking for what you consider is good value landlord building insurance that offers the most appropriate cover for you.

If you would like further clarification on what our let property buildings insurance policies cover, please feel free to get in touch.

Will my landlords’ contents insurance cover my tenant’s belongings?

No, it will not.

This is an occasional area of misunderstanding that can easily catch out both landlords and tenants alike.

In reality, landlords’ buildings and contents insurance exists to protect the interests of landlords and in some specific circumstances, third parties who might be injured or have their property damaged as a result of the landlord’s property.

So, as we discussed above, a typical landlords’ policy covering the bricks and mortar plus contents might provide cover for circumstances such as:

• damage to the building itself as well as its fittings;
• situations where the landlord’s contents, such as furniture, were destroyed by a fire or perhaps stolen in a burglary;
• instances where your tenants or another third party have sued you for damages under third party liability provisions and won their case.

However, third party liability cover typically does not include protection for the possessions of your tenants nor indeed their own physical wellbeing – unless the illness or injury was accepted by a court as being a direct consequence of something for which you were personally responsible as the landlord.

So, it might be prudent to assume that typically your landlords’ contents insurance will not cover your tenants for things including:

• the theft of their possessions following a burglary;
• the destruction of their property following something such as a fire;
• personal accidents or injuries they may sustain;
• accidents, illness or redundancy, which might prevent them from earning income and thereby paying their rent.

It’s typically a good idea to make sure these points are clarified with your tenants in advance, perhaps as part of your tenancy agreement. Special tenants’ insurance does exist and it may be in their best interests to look for it.

What is the buildings sum insured?

When applying for landlords insurance and calculating the amount of cover you need to protect your investment, you will be asked how much buildings sum insured you require.

Some landlords mistakenly believe that this amount should be equivalent to the current market value, or the amount of mortgage outstanding on the property.

However, the sum insured should actually factor in a number of different costs:

• the actual amount it would cost to rebuild your property if it was completely destroyed (note, this isn’t the market value, as already mentioned above);
• this cost should include amounts for clearing the site before rebuilding as well as the cost of fixtures and fittings (if you turned your property upside down and shook it, the stuff that didn’t fall out, such as fitted wardrobes and kitchens etc, are classed as fixture and fittings);
• professional fees etc.

In the event of a claim, if you are underinsured (i.e., your buildings sum insured amount is lower than the actual cost to re-build your property), you will be left having to find the remaining monies yourself (whilst still paying your mortgage on your property, if you have one). It’s not a good financial situation to be in.

How can I find out my rebuild value?

The amount can usually be found on your valuation report or mortgage survey. If you are still unsure of the rebuild value, use the Association of British Insurers’ rebuild calculator.

If you have any questions relating to your buildings sum insured, please feel free to get in touch. We will be more than happy to help.

What is loss of rental income cover?

If the worst happens – the property burns down or is destroyed in another manner – then the tenant will have to leave because the property is inhabitable. This means they will also stop paying rent.

Unfortunately, your mortgage would continue to fall due, so buildings insurance for landlords which includes loss of rental income cover – which can help replace loss of rent due to an insured risk – will help you keep up with your mortgage repayments until such time your property was repaired / rebuilt, and your tenant returned.

How much does buy to let insurance cost?

There are a number of things that may affect the price of your buy to let building insurance. For example, an insurer may take into account:

• the location of the property. This is relevant from the point of view of the potential risks it may face from crime and/or flooding. Given that these are issues that you are likely to have borne in mind yourself when purchasing the property, your insurer’s attitude may not come as a surprise;
• the value of the property. In this sense, the way in which prices for buy to let building insurance may be worked out may be similar to that for your owner occupied property; and
• the history of any claims that may have been made on the property. If claims have been made previously for structural issues, you may find that an insurer may want full details before being able to give you a price.

Can I get cheap buy to let insurance?

While there’s nothing necessarily wrong with that as an inclination, do remember that cheap landlord building insurance might not necessarily mean the same thing to everyone.

Some people may just say that it’s the insurance that they can get away with paying the least for. That might be fine though it may also not seem the wisest choice of definition to run with in the event of a claim if the circumstances weren’t covered.

So, in essence, what may be a cheap landlord insurance policy for you may not be the cheapest for someone else. It depends on the level of cover you need and your perceptions as to what is cheap and what isn’t.

Perhaps a more balanced definition would be a policy that met all of your needs for a cost-effective price. Using that as a guideline for buy to rent insurance may help you avoid ending up with something that’s unsuitable.

Finding the most suitable cover

Knowing that you have suitable cover behind you may help you rest a little more easily at night. That’s why finding appropriate buy to let insurance is more important than thinking exclusively about cheap landlord building insurance.

At Cover4LetProperty we provide you with an online facility to quote and buy your building and contents insurance. We provide all information regarding the insurance products we offer online, allowing you to make an informed decision based not just on our competitive premiums, but on the cover our policies provide.

Our UK building and contents insurance policies are available as:

• buildings only policies;
• buildings and contents policies;
• contents only policies.

The building and contents insurance UK policies we provide are available online where you can purchase and incept the insurance immediately.

Alternatively, don’t forget that we are also only a telephone call or email away. So, if you need a landlord’s insurance quote or simply some help and guidance on choosing buy to let buildings insurance, then we will be very happy to help. Please call us today on 01702 606 301.

The property market in the UK has rebounded vigorously from the recent succession of lockdowns, prompting a tidal wave of price increases in some parts of the country – especially rural areas. Yet many homeowners continue to undervalue their homes. And, for landlords, things have not yet quite returned to a pre-pandemic normal when it comes to evictions.

Let’s take a closer look at these stories that made the recent headlines.

Where are the UK’s current property price hotspots?

The property market across the whole of the UK is riding on a high. Prices increased by an average of 5.1% in the past 12 months – the national average standing at a record £327,797 said Property Reporter on the 4^th of May.

Areas of Liverpool and Manchester in the north west of England emerge as property hotspots.

Average prices in Wallasey, on Merseyside, are 15.6% higher than a year ago – an increase of £24,000 on the average asking price – and those that sell do so within just a week of listing.

Second place on Rightmove’s list of hotspots is Leigh, in Greater Manchester, where prices have increased by an average of 12.8%.

‘Urban flight’ raises house prices in villages

As homeowners emerging from lockdown look for more space inside and outside, the “urban flight” from towns and cities has prompted a surge in prices in the countryside, explained a report by the BBC on the 1^st of May.

Within the 10 least densely populated local authorities across the UK, prices have increased by an average of 10%, says the report, compared with an increase of just 6% in the more built-up areas.

Because the demand is for larger homes, smaller houses and flats remain in more plentiful supply.

Any exodus to the countryside, of course, relied on the ability of homeowners to make such a move – and for lower-income groups, a home in a spacious, rural setting would remain little more than a pipedream.

UK homeowners collectively undervalue their homes by £237bn

Online listings website Zoopla published some startling figures on the 21^st of April revealing the extent to which many UK homeowners undervalue their property.

A survey of “hidden equity” in the average home revealed that nearly half of all homeowners undervalued the property in which they lived by an average of £46,300 – a tidy sum, which represents almost one and a half times the average annual salary in the UK.

More startling, perhaps, is the discovery that more than one million homes are likely to be worth £100,000 more than their current owners appreciate.

These under-valuations stem from the way in which an estimated two-thirds of homeowners have seemingly fallen out of touch with the true value of their homes. This is despite the fact that when eight out of ten of them discovered that true value, they realised how much that knowledge could “improve their lifestyle”.

Indeed, when the current home was sold – and the previously hidden equity released – around half of those selling were able to move into a better home than they had imagined owning.

Landlords warned of change to the arrears and eviction process

Landlords have been warned to pay careful attention to changes in the issue of Section 8 eviction notices with effect from the 4^th of May, according to advice published by the National Residential Landlords’ Association (NRLA).

There is currently a temporary freeze on landlords’ ability to issue Section 8 notices to quit because of any arrears of rent (but certain other grounds to evict remain valid). With effect from the 4^th of May, moreover, landlords must include written details about the government’s Breathing Space initiative for any Section 8 notice to be valid. If the landlord has not included such a reference, the notice to quit will need to be re-issued.

An article in Landlord Today explained that the Breathing Space initiative – formally the Breathing Space Moratorium and Mental Health Crisis Moratorium (England and Wales) Regulations 2020 – imposes a temporary moratorium on efforts by landlords or their letting agents to recover arrears of rent from tenants.

This also includes removal of the landlord’s right to serve a Section 8 eviction notice on the grounds of arrears of rent. Whatever the reasons cited for the Section 8 notice, landlords must now provide tenants with written details of the Breathing Space initiative.