There is an ever-expanding raft of laws regulating the conduct of landlords in the private sector. So, you might reasonably expect the powers that be to frame the legal requirements for landlords with respect to asbestos in a clear and unambiguous fashion.

Unfortunately, the critical piece of legislation, Control of Asbestos Regulations (CAR) 2006, has managed to create considerable confusion on this subject due to the use of some highly ambiguous wording.

While we take a closer look at the laws regulating asbestos in rented dwellings, it is important to note that what follows is not legal advice. If you are in any doubt whatsoever, you must consult a specialist qualified to speak in detail on the law. Hopefully though, the following will give you some indication of the issue and what needs to be considered.

Asbestos – a building material

Asbestos was heavily used in construction between the 1950s and 1980s, but surprisingly it was only actually outlawed in the UK at the very end of the 20th century.

Broadly speaking – and out of an abundance of caution – it is probably safe to assume that any property built (or substantially modernised) between 1950 and 1999 may well have asbestos incorporated into its construction.

Asbestos – landlords’ responsibilities

The CAR regulations make clear that landlords have a legal duty of care to inspect their property for asbestos and to take appropriate steps to deal with it if necessary.

These are clearly outlined in various online guides – a notable example is that published by the British Landlords’ Association (BLA).

Unfortunately, confusion arises because the CAR regulations also state very clearly that they only apply to landlords leasing or letting out non-residential properties – in other words, they apply only to commercial properties. Quite simply, therefore, it would be perfectly possible to read these guides and summaries and conclude that, as a residential landlord, you do not need to worry about asbestos in your property or to make sure that it is either safe or needs to be removed.

This leaves landlords in an unenviable position of confusion, and it isn’t entirely easy to understand the logic behind it. It might help, however, to understand the issue in the wider context.

The wider context

The CAR regulations actually form part of the much more broadly based health and safety at work legislation that goes back to the 1970s. That legislation makes it perfectly clear that the landlord of premises that are being used for commercial purposes is responsible for it being a safe environment in which to work – and safety concerns here are likely to include the presence of asbestos, asbestos inspections, and any remedial actions that may be required.

Of course, it might be argued that your residential buy to let property is not being used for commercial purposes. But as you are using it for the purposes of generating an income, it might reasonably be seen as falling within the scope of the above-mentioned legislation.

There really isn’t a bottom line to this unnecessarily confusing situation, other than to say that it might be prudent for all landlords, irrespective of how you read the legislation, to undertake appropriate asbestos surveys and actions where required.

Landlord’s insurance

Remember that if you purchase your landlord insurance online or anywhere else, it is likely to remain valid only if you have fully complied with all the legal requirements relating to health and safety within your property.

You can find a rather more detailed discussion of the subject here, relating to properties in England and Wales. For properties in Scotland, please click here.

Please remember that you may need to take specific advice relating to your particular situation and circumstances.

The central heating boiler is the beating heart of any home. And as winter approaches – and if you haven’t already – now is a good time to make sure yours is maintained and ready for the cold weather.

As energy prices have started shooting through (as October 2022), it has become more important than ever that your boiler continues to work as efficiently – and, therefore, as economically – as possible.

Certainly, boiler breakdowns are incidents you want to avoid. Any breakdown is likely to happen when you need the heating the most and turns into something of an emergency. And emergency callouts to get it fixed are then going to be all the more expensive.

Maintenance

The best way of keeping your boiler working at peak efficiency and avoiding those unexpected breakdowns, of course, is to ensure that it is regularly serviced.

Whether it is the home you live in as the owner-occupier or one that you let to tenants, timely maintenance helps to prevent those troublesome and costly callouts when boiler engineers are likely to be at their busiest. It may typically even be a condition of your buildings insurance policy to ensure that your boiler is regularly serviced.

If you are a landlord, it is more than just prudence, but a matter of law. You have a general obligation to ensure that the accommodation you let is fit for habitation – and that means a warm environment in winter and, hot water on tap.

More specifically, you are required to have any gas-fired boiler installation – together with any other gas appliance – inspected and checked by a Gas Safe-registered engineer at least once a year.

Even if you live in your home, a condition of your home insurance policy is that everything is regularly serviced and maintained – so an annual boiler service makes sense.

What to do if your boiler breaks down

A regular domestic boiler should be serviced once a year, says the Boiler Guide in a posting on the 6^th of July 2022. A properly serviced boiler will help you save energy – and, therefore, lots of money on those escalating fuel bills – as well as keep your home warm during the cold winter months, explained an article by Ideal Home on the 4^th of January 2022.

Whether you are a homeowner looking to manage your energy bills or a landlord keen to comply with the law on maintaining any gas appliances, you’ll want to avoid boiler malfunctions and breakdowns.

But what should you do if and when the worst happens?

• whether you are a homeowner or landlord safety first is paramount;

• if there is a smell of gas, the normal colour of the flame changes, or there are sooty marks around the boiler, turn it off straight away and call the emergency gas line on 0800 111 999 (open 24 hours a day, whatever energy supplier you use);

• if the pilot flame keeps going out, once again don’t try to re-light the boiler, but call out a Gas Safe engineer;

• nevertheless, if you are confident that everything is otherwise safe, British Gas suggests a number of fixes that you might try yourself before calling out the professionals;

• these include resetting the pressure gauge on your boiler, checking that the condensate pipe (on the outside of your home) hasn’t frozen up, resetting the thermostat or boiler temperature gauges, relighting the pilot light (provided it is not constantly going out – in which case, call the gas engineer), or resetting your boiler if it has “locked out”.

It is important to stress, however, that you should only try these suggested remedies if you are confident in what you are doing and are absolutely certain that the boiler and its gas supply remain safe. Otherwise, shut everything down, make that call to the emergency gas line, and await the arrival of a trained and certified engineer.

Recent UK property news highlights a surge in equity release agreements and a significant injection of new mortgage lending.

Meanwhile, landlords look to the advantages of operating as a limited liability company although many are also in danger of quitting the buy to let market altogether if faced with rent freezes, ongoing tax demands, and the challenge of sheer red tape.

Let’s take a peek behind the headlines.

Equity release is booming

Older homeowners looking to unlock some of the capital value in their property have fuelled double the usual number of equity release agreements in the past seven years, according to a story in the Daily Mail on the 8^th of September.

Whereas there were fewer than 2,000 equity release deals signed each month in 2015, the monthly average so far this year has reached more than 4,500.

Citing reasons such as escalating inflation and the general cost of living, homeowners can borrow up to 60% of the value of the equity they own in their homes yet still continue to live there, pending the lender’s recovery of both the capital and rolled-over interest payments when the owner dies or goes into long-term care and the property is sold.

Tax benefits drive surge in landlords forming buy to let companies

The tax benefits available to landlords who run their buy to let business as a private limited company rather than on their own private account has led to a surge in company formations, revealed Landlord Today in a story on the 12^th of September.

Recent surveys have shown that during the year to the end of August, the number of landlords incorporating their businesses rose by two and a half times the number who had formed limited liability companies in the previous 12 months. New company formations have grown by 11% each month since the beginning of this year.

The sound business case for incorporation includes the protection afforded by limited liability together with the tax advantages of paying corporation tax rather than personal income tax.

UK’s property market sucks in £84bn of new mortgage lending

The second quarter of this year has seen new mortgage lending reach a total of £83.9 billion – some 1.7% up on the previous month – according to figures published by Yahoo Finance on the 13^th of September.

New lending of this order underlines the current strength of the UK property market even while house prices have reached a record high of £294,260 for the average home, an increase in interest rates, and a fall in the number of mortgage products available – August registered a 13% drop or 517 fewer such products.

As inflation and increases in the cost of living begin to bite, however, average house prices nevertheless continue to rise faster than average salaries. Against that background, analysts predict a slowing down or easing of the housing market.

Taxes, rent freeze and red tape will drive out landlords

In a story on the 14^th of September, Landlord Today revealed predictions by the online listings website Zoopla, that more landlords risk being driven out of the buy to let market.

The commentators argue that an intensifying tax regime and a raft of legislation and regulation are compelling many landlords to sell up. As the pool of available rental accommodation decreases but existing tenants look to renew their tenancies, the widening gulf between supply and demand will inevitably fuel further increases in rent levels.

In place of more legislation, it is argued, further investment needs to be stimulated so that more accommodation becomes available to rent.

It’s a lesson any landlord will learn pretty quickly. From the moment your tenants move in, you effectively lose certain rights of ownership until such time as the agreement comes to an end and they move out.

A painful lesson

There are times when that very fact may become an all too painful reality if you are unfortunate enough to find yourself lumbered with problem tenants.

From the very outset, therefore, you will be trying to avoid anything like that problem. It means that you’ll need to exercise the best and most effective judgment you can muster when selecting and vetting potential tenants.

From the very word go, you’ll be looking to avoid unintentionally letting people into your property who subsequently prove to be troublesome.

Just in case

Since there’s nothing quite like anticipating trouble before it begins, you need to be fully aware of your legal rights and responsibilities in terms of rental agreements, deposit management and all of your responsibilities and obligations as a landlord.

Having a landlord’s insurance policy in place, like those on offer from providers such as us here at Cover4LetProperty – where cover against malicious damage by tenants is a standard policy inclusion – is a further prudent and common-sense precaution.

Avoiding trouble

We’re not saying that you are necessarily wielding a carrot and the stick, but avoiding trouble takes a healthy dose of give and take – try giving tenants what they want but stick to some basic ground rules before granting any tenancy agreement.

We have written separately about keeping your tenants happy by meeting their most obvious wants. So, let’s consider the rules you might want to follow when vetting applications and deciding who will qualify for a tenancy – they’re rules designed to help you avoid problems in the first place rather than having to find ways to solve them:

Interviews

• these need to be approached seriously – more than the casual chat you have while showing them around;
• instead, set aside half an hour or so and talk about their job, background, attitudes, and prospects – you might be surprised how conversations such as this can help spot trouble further down the line;

References

• aim to take up two to three references – though bear in mind that anyone who has been asked to write a reference can be expected to be supportive, so you may need to read between the lines;
• references from at least two previous landlords will be more objective – and more valuable for that;
• a reference from an employer may be useful but is unlikely to give you more than confirmation of the tenant having a job at least;

Credit checks

• a check with the relevant credit reference agencies is fast and cost-effective – and applicants with a poor credit history may think twice about applying or will at least need to explain why they’ve had difficulties managing their debts;
• ask to see copies of recent utility bills they’ve paid;
• ask for their bank details to confirm they have a current account – though you won’t be able to check the balance unless they agree to your doing so;
• insist on getting sight of at least the two most recent payslips – and check that their monthly take-home pay is roughly three to four times the rent you are seeking;
• ask what credit cards they currently hold;

Personal – Right to Rent

• you have a legal obligation to check that any prospective tenant has an immigration status granting the Right to Rent in the UK;
• check their identity by asking to see a passport or driving licence;
• depending, of course, on their current address, you might even choose to visit them where they currently live.

In a number of these areas, of course, there is scope for manipulation or falsification on the part of the prospective tenant. Rigorously performing the checks, though, remains your biggest opportunity for avoiding serious problems and issues if a tenancy is granted.

If you own an empty house or flat, you will want to compare unoccupied property insurance to find the most cost-effective and appropriate solution for you – the solution that offers genuine value for money.

This article discusses the principle of unoccupied property insurance – what it is, who needs it, and what you might want to consider when comparing empty let property or home insurance quotes.

What is an unoccupied property?

Broadly speaking, the insurance industry defines property as unoccupied when its occupants have been absent for a specified maximum number of consecutive days as set out in the insurance policy documents.

The interval specified in the policy documents is typically between 30 and 45 days although the precise period may vary according to the particular policy and the insurer in question.

When that period expires, the existing insurance cover will typically lapse altogether or become severely restricted – this can leave the cover reduced to that against floods, lightning, earthquakes, and explosions, which is so-called FLEE cover. To restore the full protection normally provided by your property insurance, therefore, you will need specialist unoccupied property insurance – which may also be known as empty or vacant property insurance.

Why is empty house insurance needed?

Insurance is about the management of risk – and insurers invariably regard an unoccupied property as a higher risk than a property that is occupied.

The logic behind this is simple:

• unoccupied properties may be far more attractive to burglars and vandals – in a special briefing for members of the Royal Institute of Chartered Surveyors (RICS), security specialists VPS warned that around half the property fires in the UK are deliberately started in acts of arson; and
• empty properties are at greater risk of contents suffering theft, loss or damage, and also structural damage resulting from otherwise relatively minor maintenance issues – such as leaks, broken windows, slipped slates, and the like – which can nevertheless develop into incidents involving extensive damage if they are not promptly dealt with.

What is the difference between vacant and unoccupied?

Typically, insurers make little or no distinction between an unoccupied and an empty building. If you are not living, or you do not have tenants (or anyone else) living in your buy to let property, then it will be deemed as unoccupied – even if it is furnished.

If you have the builders to work on an extension or renovate your property, they may be there throughout the working day but naturally, leave it empty during the night and on days off – if no one is living there while the building works are in progress, the property will be regarded as unoccupied.

Who may need unoccupied home insurance?

Empty property insurance may be required by homeowners, landlords and other owners of property that is classed as empty, vacant, or unoccupied. The reason the property is empty is largely irrelevant. It could be the result of:

• a longer than usual search for new tenants while you wait for them to move in;
• the property is in probate or the subject of divorce proceedings;
• occupants have moved out while renovations or modifications are in progress – these can very easily overrun, no matter how carefully you may have planned the work;
• you are going on an extended business trip or perhaps you are treating yourself to the holiday of a lifetime.

My property is going to be unoccupied for three months. Am I still covered?

The answer is almost certainly not, although you may need to check the small print of your policy to be absolutely certain.

Many insurance providers understand that your house or flat may have no one living there at times due to reasons such as annual holidays, tenant changeovers (if yours is a let property) and so on. That’s why you may find that a typical buildings and contents policy will provide cover for empty properties for up to a specified number of consecutive days.

Should it remain unoccupied after that initial period has expired, then elements of your cover may become null and void. The only solution in such situations is to take out a specialist unoccupied property policy.

You may be interested to know that this condition also typically exists in home insurance policies for owner-occupiers – it is not only an issue for landlords.

Unoccupied property insurance and probate

When someone dies, he or she will typically leave property and other items of their estate behind. A legal process needs to be completed before they can be distributed through inheritance to whoever the beneficiaries of the estate may be – and these are typically identified in the deceased’s will.

This legal process is called probate and it may have an effect on the insurance of a property that you own, administer, or have the expectation of inheriting:

• when somebody dies, whether or not they have left a will, there may inevitably be a period during which any property they owned and lived in, is sitting empty and unoccupied;
• while the necessary legal processes concerning inheritance and transfer of ownership are undertaken, it might in some circumstances be impossible to do much with the property concerned before completion of probate;
• once a property sits unoccupied for more than a period of time specified within any buildings and contents insurance policy, any existing cover may become invalid;
• cover may only be maintained by arranging suitable unoccupied property insurance – probate itself makes no difference to this requirement;
• the conclusion here is relatively straightforward, if you are responsible for the administration of property under probate or are expecting to inherit it in due course, you should take all steps to make sure that it is covered by the appropriate unoccupied property insurance if nobody is currently living there; and
• it is also worth bearing in mind that once you do have appropriate cover in place, the policy may require someone to regularly inspect the property and to keep it in a tidy, lived-in, and well-maintained state of repair – care for the external appearance of the property may help to deter thieves, burglars, vandals, and squatters.

If you are the beneficiary of an inheritance relating to a property, the original owner may well have intended that you should obtain a degree of financial benefit from the property concerned. It is therefore in your best interests to be sure that you understand what role unoccupied property cover may play in that process.

What happens if I don’t take out this revised form of cover?

Aspects of your insurance protection may simply lapse.

Your property’s empty status may come to light only too readily during the routine investigations made by any insurance company in the event of your making a claim on the policy. That might lead to your claim being rejected.

That is likely to be a risk that you decide is simply not worth taking.

How to compare vacant property insurance

Not all let property insurance offers the same degree of cover and similar distinctions also apply to empty property insurance.

For example, some policies may offer only market value replacement for your contents whereas others may provide new-for-old replacement. There may be a slight cost difference between the two, but one may suit your requirements better than another.

Some unoccupied home insurance policies will offer elements of cover as standard while others may not – that is why it is important to not just compare the cost of the cover, but the policy features and benefits.

Terms and conditions

Naturally, different unoccupied property insurance policies will have different terms and conditions – as you may see when you compare unoccupied insurance quotes. These differences could include requirements to:

• arrange for the property to be inspected regularly and maintain it in a good state of repair;
• keep a log of those inspection visits made and any work undertaken;
• maintain the garden and, if you have the builders in, clear away any rubble and debris; and
• if possible, arrange for a light to switch on automatically when darkness falls – to give your property a lived-in look to help deter thieves and vandals.

Next steps

If you compare empty property insurance policies, you may quickly be able to find the cover that most suits your own particular needs and circumstances. Of course, we are always on hand to help you find the insurance cover you need, so please always feel free to ‘phone us on 01702 606301. One of our dedicated team will be delighted to help!

Further reading: Guide to Unoccupied Property

If you’re new to the business of being a landlord – or have simply grown a little rusty – it can be a challenge to remember everything that needs to be done.

To help you along the way, therefore, we offer a brief checklist for landlords of properties in England to get you going. It is by no means an exhaustive list – and you might want to read around the subject or gather more in-depth knowledge by browsing one or more of the many guides you’ll see listed on the right hand side of our homepage:

Safety first

• the moment you take on the role of landlord you also assume responsibility for the health and safety of your tenants – as a matter of both common law and statutory obligation;

• fall down on those responsibilities and you could find yourself facing stiff fines and penalties or ordered to pay a substantial sum in damages if you are held liable for any negligence;

Gas safety

• you are required by law to have a gas safety inspection carried out by a qualified engineer every year – and give a copy of the certificate of approval to your tenants;

Electrical safety

• the housing charity Shelter reminds landlords in England that compulsory electrical checks have been in place since the 1^st of July 2020 and that these need to be repeated at least every five years – with a copy of the results of this electrical inspection condition report (EICR) also made available to your tenants;

Fire safety

• the regulations in England relating to the need for smoke alarms and carbon monoxide detectors have been strengthened and new rules come into force from the 1^st of October 2022;

• if you are the landlord of a House in Multiple Occupation (HMO) the conditions of your operating licence may impose even further requirements for fire safety, depending on the nature of your HMO, suggests the Fire Safety Advice Centre;

Energy Performance Certificates (EPCs)

• you are required to provide your tenants with a copy of the latest Energy Performance Certificate (EPC) for the let premises;

• before you can legally let the property it must have achieved an EPC rating of at least an E – but stricter requirements are under active consideration by the government and, by 2025, you might expect the minimum EPC rating to move up to a C;

Housing Health and Safety Rating System (HHSRS) inspections

• in addition to the specific legislative requirements for safeguarding the health and safety of your tenants, local councils in England and Wales are also empowered to carry out Housing Health and Safety Rating System (HHSRS) inspections whenever they see fit or if such an inspection has been requested by your tenants;

• if you are the landlord of an HMO, you must expect the local council to carry out just such an inspection within five years of your having applied for your HMO licence;

Additional checks

• in addition to checks designed to safeguard the health and safety of your tenants, other legislation relates to the landlord’s duty to supply a copy to tenants of the latest government publication How to Rent guide;

• you also have a duty to check the immigration status of prospective tenants to ensure that they have a Right to Rent; and

• any deposit you take from your tenants – as security against breakages, for example – must be placed for safekeeping with an approved Tenancy Deposit Scheme.

Even allowing for the fact that this checklist is by no means exhaustive, it is clear that becoming a landlord also comes with a whole raft of legal responsibilities and obligations. Your failure to comply with any one of these rules or regulations can attract substantial fines – and, in some cases, even imprisonment – so, you will do well to follow them carefully and keep thoroughly up to date with any changes.

Further reading: Landlord legislation guide, Landlords’ guide to health and safety and Guide to Tenancies.

Please note the information within this blog typically relates to properties in England only and is based on our current understanding of the Law. We recommend you seek advice from the relevant authority if you have any queries relating to the above.

Current property news reveals some more of the potential fault-lines in the UK housing market.

Inflation and the rising costs of living encourage would-be tenants to ask for tenancies with all bills paid. The house price index shows some signs of faltering, and more landlords threaten to sell up. While first-time buyers are priced out of their prospects for owning a home by the seaside.

“Bills included” becomes the most searched-for term by renters

When prospective tenants are searching for their likely new rented home, the feature they most want from the tenancy is “bills included”, according to a survey cited by Landlord Today on the 25^th of August.

The priority given to tenancies with “bills included” may be a reflection of the rapidly increasing costs of energy on the eve of what is likely to be a fairly bleak winter for many. Whereas the inclusion of utility bills within a tenancy appeared in only sixth place in the order of tenants’ priorities a year ago – lower than “a garden”, “garage” or “pets allowed” – it has now leapt into first place.

A dearth of available homes to rent has also forced tenancy searchers to cast their nets over a much wider area. Four years ago, for example, tenants could concentrate their search into an area of roughly 70 sq. km. These days, the search area has expanded to cover an average of 137 sq. km.

Prices fall likely more due to holidays than rate rises says Rightmove

The house price index maintained by online listings website Rightmove showed a marginal fall in August – for the first time this year.

House prices fell by just 1.3% – the equivalent of £4,795 – during August to an average of £365,173.

However, Rightmove also points out that it is entirely usual for prices to fall during August in most years – when potential buyers are otherwise occupied enjoying their holidays – and a drop of just 1.3% is consistent with the movement there has been at this time of the year in the market during the past 10 years or so.

One in four landlords are prepared to sell up if the abolition of “no-fault” evictions goes ahead

A recent survey cited by IFA Magazine – the periodical for Independent Financial Advisers – on the 25^th of August revealed that only 22% of landlords were in favour of the proposals contained in the government’s latest White Paper for a “Fairer Private Rented Sector”.

Objections were voiced to two of the main objectives set out in the White Paper – namely, the abolition of Section 21 of the Housing Act (which grants landlords the right of so-called “no-fault” evictions) and the creation of a national register of landlords.

The abolition of Section 21, in particular, would make more than half (56%) of the landlords surveyed more careful about the types of tenants they accepted while as many as 25% would even consider selling up some or all of their let properties if no-fault evictions no longer provided a way of ejecting troublesome tenants.

Rising coastal house prices have outpaced rises in first-time buyer salaries

There is one group of hopeful homebuyers who have seen their dreams of living by the seaside dashed by rising prices, reported the Mail Online in its edition on the 24^th of August.

The newspaper spoke of the growing appeal of coastal locations for those who have been encouraged to move home during the recent pandemic. Those hopeful house hunters have included many first-time buyers who have now discovered that the cold reality of soaring prices has dashed their dreams.

Any salary increases first-time buyers might have recently enjoyed, explained the report, have been more than overtaken by the escalating prices of homes beside the seaside.

Buy to let property insurance (also known as landlord insurance) is cover specifically designed to protect the principal assets of a buy to let business.

The insurance recognises that anyone instantly becomes a landlord the moment they let their property, rent out rooms or areas of a home that they also continue to occupy, or only occasionally let their home during holiday peak periods on platforms such as Airbnb.

Most important of all, once you cross that boundary into letting your home, or any part of it, your insurance requirements automatically change too. It is no longer possible to rely on the owner-occupier home buildings and contents policy that previously offered you protection – you will need to get a fresh quote for specially formulated insurance for landlords.

How is let property insurance different from home insurance?

Insurance is all about the management of risk. And the fact is that those risks are different when you compare let property insurance with regular home insurance. The principal and most obvious distinction, of course, is that a let property is regarded as a business.

For example, common sense may tell you that, however responsible they may be, tenants may not be quite as quick as an owner-occupier to spot otherwise relatively minor maintenance issues before they become more serious problems.

In fact, landlord insurance provides more than just buildings and contents cover for rental properties – it safeguards against other potential threats to the buy to let business and there may also be extra elements of cover that form part of the policy or as an add-on.

What does landlord insurance cover?

Buy to let landlord insurance is typically an essential part of any landlord’s toolkit and recognises that:

• the property in question is a vital asset used to generate the income for your business;
• it was invariably an expensive asset to buy;
• if the asset is out of action for any reason whatsoever, then your income is likely to be zero.

Landlords’ insurance takes several forms and different insurance providers will offer various terms and conditions. If you’re looking for buy to let insurance, you’ll need to ensure that your property and the business in which it plays its part are fully covered along the following lines:

Buildings insurance

• the risks to the structure and fabric of the building itself are many and varied;
• typically, landlord insurance covers risks such as fire, flooding, storm damage, escape of water, impacts, vandalism, and theft – with some, but not all policies also covering the grave consequences of subsidence and heave;

Contents insurance

• your tenants will need to arrange their own insurance for their belongings and possessions, of course, but you might want to safeguard those possessions you own with the appropriate contents insurance;

Third-party liability

• when there are tenants in your property, you are responsible for ensuring their health and safety and may be held liable if they, one of their visitors, a neighbour, or even a member of the public suffers an injury or has their property damaged;
• if you are found to be liable, you may be ordered to pay substantial damages – especially if anyone has suffered an injury – or even death;
• landlord insurance, therefore, typically offers at least £2 million worth of cover to indemnify you against such third-party liability claims;

Cover for loss of rental income

• recognising that your business relies on the income you receive from tenants, buy to let insurance typically offers a degree of compensation for that loss of rental income if your let property becomes temporarily uninhabitable and unlettable following an insured incident;

Accidental damage cover

• when you are comparing buy to let insurance, you will notice that some policies include elements of protection (such as accidental damage or malicious damage by tenants, for example) as standard – others may offer the option to pay for these as optional extras or add-ons.

What doesn’t buy-to-let insurance cover?

Most landlord insurance policies are unlikely to include the employers’ liability insurance cover you are legally obliged to arrange if you employ anyone (but for a few rare exceptions) to help run your buy to let business.

As we touched on above – buy-to-let insurance policies may vary at the individual policy level too – with the terms, conditions, benefits, and features being slightly different to that offered by another landlord insurance provider. This includes any exclusions attached to the policy.

What happens if the property is unoccupied or being renovated?

Don’t forget that from time to time your let property might be unavoidably empty and unoccupied – between rentals, while it is being renovated, for any other number of reasons.

Insurers adopt different policies towards such empty property, which is typically regarded as unoccupied once no one has been living there for a period of more than 30-45 consecutive days (the exact interval varying from one insurer to another).

What that means is that to ensure you have the most comprehensive cover for your property, it may be essential to add unoccupied property insurance when the need arises. Failure to do so could invalidate your existing insurance arrangements – and may also breach an important condition of any mortgage that requires the property to remain adequately insured at all times.

Speak to your insurance provider

If you want to be confident that your let property and business interests are protected, it’s important to make quite clear to any prospective insurance provider that the dwelling will be let.

It’s equally important to inform your insurance company – and your mortgage provider – if you change the use of your property from owner-occupied to rental (whether in full or even part).

Failing to get this right may result in a future claim being rejected. Insurance companies do have methods of checking the actual occupancy status of a property in the event of a claim being made.

Buy to let landlords’ insurance – supplemented by unoccupied property insurance when required – could make your life a lot easier in the event of a crisis. So, making sure you have appropriate cover in place to protect your buy to let business is key.

Finally, it is important to note that if you have a mortgage on the property, your mortgage provider will typically require that you always have appropriate property insurance in place at all times, to protect both your financial interests in the property.

If you are a landlord, then like a lot of people, you probably regard the cost of insurance as an inevitable and necessary expense – but, at the same time, you’ll want to keep the cost of it as low as possible.

To be on the lookout for what you consider is cheap landlords’ insurance, therefore, is in many ways only quite natural.

Beware of the headline price

One possible problem with products branded as low-priced or cheap landlords’ insurance, though, is that the attractive price tag may have been achieved at the cost of the levels of let property insurance cover provided.

Just looking at the price alone might tell you very little about the insurance cover and protection offered. Looking carefully through the landlord insurance policy terms and conditions may be the only way that you can make sure that your policy does what you need it to do in terms of helping you protect your livelihood as a landlord.

What is cheap landlord insurance for you may not be so for someone else

Also, what you consider to be the cheapest landlord insurance for you may be different from that of your other contemporaries and fellow buy to let colleagues. That is because not only will your requirements differ for the type of building insurance you arrange, but your very perception of cost-effective landlord insurance may do too. Your landlord insurance needs to match your own unique requirements and financial circumstances.

So that you may feel better informed about your landlord insurance options – including the cost and the protection offered – let’s tackle some of the most frequently asked questions (FAQs) we’re asked here at Cover4LetProperty.

Does cheap landlords’ insurance really exist?

It’s hardly uncommon to see the banner headline “cheap landlord insurance” liberally spread across many buy to let home insurance advertisements. But does cheap landlord insurance really exist?

That all depends on your perception of just what is cheap insurance. As we mentioned above, what is cheap for one person may not prove to be cheap for another. This is because while one landlord may be looking to pay as little as possible for his or her let property insurance – and will be satisfied with the lowest possible price – another landlord may want a very comprehensive policy with all its bells and whistles.

In the latter case, of course, that is unlikely to be the cheapest policy available even though it represents good value for money in terms of the cover provided.

How do I choose the most suitable landlord insurance?

Clearly, if you compare a buy to let property insurance policy providing a relatively basic level of cover and benefits with one that offers a far higher degree of protection then you might expect to see the more basic policy offered at a lower price relative to the more comprehensive policy.

But if the policy providing broader cover is a good match to your requirements, then you may still consider it to be “cheap at the price” – it represents good value for money.

Perhaps the most suitable way of finding cover that meets your needs and at a price that you find realistic is by comparing landlord insurance policies (or let us make those comparisons on your behalf by using our landlord insurance quote service). By making those comparisons, you can weigh up which one offers you the most suitable level of protection and at the most attractive cost.

Remember that all buy to let insurance policies will differ in certain respects. Some might offer the following benefits and features as standard or optional cover, for example, while others may not:

• cover for the legal fees that arise from pursuing or defending an insured risk – that may even include situations where you did not win the case (but typically this would not cover situations where you were taking legal action against tenants for eviction or the recovery of rent arrears);
• trace and access cover – this is cover that will allow you to recover the costs associated with a tradesman’s explorations to find the origin of a problem (up to pre-agreed limits);
• malicious damage by your tenants – such cover may not be typical on some buy to let property insurance but is offered as standard with the policies we arrange;
• subsidence – once considered an essential part of all buildings insurance, not all buildings insurance policies of today will provide it as standard and that may leave you very significantly exposed unless you opt to pay an additional premium;
• loss of rent cover – you may suffer this surprisingly easily if your property is rendered un-rentable due to an insured event that makes your property temporarily uninhabitable (specified maximum limits may apply); and
• full tenant flexibility – not all policies will offer the same degree of cover irrespective of the nature of the tenants that you accommodate, whereas others may not differentiate between such individuals as the unemployed, students, or recipients of benefits.

The bottom line may be simply that what is cheap landlord insurance for someone else may be neither cheap nor suitable for you. It is always advisable to read the policy carefully and study its benefits thoroughly before starting to think about its pricing level.

How much does landlord insurance cost?

Once again, this will depend, of course, on your specific needs, requirements, and circumstances. As we have mentioned, different landlords will have different needs. What is more, your landlord insurance cover and the options for the premiums to pay will vary from one landlord insurance provider to another also.

At Cover4LetProperty we are committed to helping you to understand how you might influence the cost of your buy to let cover and the following points might help:

• if your business involves letting property on an unfurnished basis, you may not need contents cover – arranging buildings insurance cover only plus any necessary liability indemnity insurance might enable you to reduce your costs;
• similarly, some policies may welcome your use of additional security precautions such as burglar alarms and upgraded locks on doors and windows (above those specified as necessary within the policy document), with reductions in premium – to qualify for any reduction in premiums, these may need to be approved and certified devices rather than merely ones that you have bought or made yourself;
• you may have noticed that quotations are occasionally issued on the basis of what is called, subject to excess, which is a sum of money that the insurance provider will expect you to contribute towards any future successful claims and it is sometimes referred to as the first part of a claim – many policies will let you increase the amount of excess on the policy over and above that which is the minimum in return for a discount on the premiums payable;
• shopping around is important, of course, and just as with any other purchase, the price of an insurance policy may vary significantly between insurance providers – remember that the cheapest policy might not necessarily be the one that offers you the greatest degree of security so read the policy detail carefully and try to avoid focusing exclusively on the price; and remember that
• some policies may carry a premium that is influenced by the occupancy details of your property in terms of tenant numbers – smaller letting unit numbers per property may result in lower premiums.

Can I use regular home insurance instead of landlord insurance?

If you’re looking for lower-cost solutions, it’s important not to be swayed into thinking that regular owner-occupier home insurance policies will suffice. Such insurance typically is not valid for letting situations and you may find any future claims rejected once the insurance provider discovers that your property is let to tenants.

If your property is mortgaged, your mortgage provider may typically insist that you have buildings insurance in place at all times to protect both your financial interests in the property.

If you have the “wrong” type of insurance (e.g. you use home insurance for a let property), this could be classed as fraud and your mortgage provider could ask that you settle any outstanding mortgage in full immediately.

What is the difference between landlord insurance and home insurance?

The distinction between these two forms of property insurance cover is critically important and one that every landlord (and some owner-occupiers) must understand:

The basic outline

• most property owners want to protect the very substantial investment they have in their bricks and mortar. They usually look to property buildings insurance to help them with that;
• property insurance itself comes in various shapes and sizes with much of that variation being attributable to how the provider of cover interprets the risks associated with any given property and a critical part of that risk assessment considers just how the property is being used;
• in this context, there is a vitally important distinction – whether it’s being used for letting or exclusively owner-occupier purposes;
• that matters because insurers typically see let properties as constituting a different risk profile to those that are owner-occupied – so, a landlord letting property will need appropriate property insurance for the risks they face and that typically means landlord insurance rather than standard owner-occupier cover;

The bottom line

• the reality is simple – if your property is being used for letting, you must have specific landlord insurancecover and that typically applies even if you continue to occupy your property and only let out a part of it;
• if you have owner-occupier home insurance for a property being used in full or part for generating rental income, any claims you might make against that policy may be refused if and when the provider discovers – as they almost certainly will – that it has been let to tenants;

How cover differs

• in addition to appropriate cover for the property itself, you may find that landlord insurance varies in other respects too;
• it typically provides enhanced levels of third-party liability cover – providing essential indemnity against your liabilities as the landlord if a tenant, one of their visitors, a neighbour, or even a member of the public is injured on your property or has their property damaged;
• it may provide certain additional “business management” benefits or options relevant to the fact that your property is your business – this might include, as standard or a paid option, things such as legal fees protection, cover for accidental damage caused by tenants, personal accident, and loss of rent. Some of these may be paid-for additional extras;

Legal issues

• as we touched on before, if you have any form of buy to let mortgage, you probably signed a loan agreement committing to keep the property fully and appropriately insured at all times. If you subsequently only use owner-occupier property insurance cover, you might be in breach of that agreement with your mortgage lender and be liable to repay immediately the sum advanced plus interest.

How do I find the most cost-effective and suitable landlord insurance for me?

This may not be so much of the time-consuming chore that you first imagined it to be. Let us do the hard work for you, make the searches and insurance comparisons on your behalf, so that we can match the policies to your precise needs and requirements.

That just leaves you to choose the insurance policy that appears to be the most appropriate for you.

By letting us help – either by getting a quote online or telephoning us – you can find what we believe is appropriate and cost-efficient landlord insurance property cover. This allows you to maintain the level of protection that you need but not at the expense of compromising on the level of cover provided.

It’s sad to know that there’s barely a single aspect of life that criminals won’t try to turn into an opportunity – and property is no exception.

In what follows, we’ll examine two of the most common types of fraud and some of the measures you can take to reduce the chances of you becoming a victim.

Bogus property investments

Financial fraud is as old as history itself. Investopedia relates the case of insurance fraudster Hegestratos who committed his crimes in ancient Greece – around 300 BC.

In the modern world, probably the most frequent financial scam is bogus investment. It typically involves somebody asking you to invest in property (often buy-to-let) or land. The returns promised are often exceptionally attractive and the risks are portrayed as low to non-existent.

The scam is rarely confined to a hopeful telephone call made to your home. Quite often the crooks operate from well-appointed (though short-term rented) offices. They might also run large-scale extravagant seminars and conferences in major venues such as luxury hotels.

In some cases, some of the people you might see around the office are totally unaware that criminal activity is being perpetrated – they genuinely believe they are working in a legitimate capacity.

If you go forward and hand over your money by way of an investment, you may subsequently discover that:

• the investment property in question is derelict and uninhabitable;
• in some instances, the property might actually have been demolished since the photographs were taken;
• planning permission to convert the dwelling into, say, an HMO (House in Multiple Occupation) has already been refused; or
• the land being proposed for purchase and development of residential property is currently zoned for agriculture, with little or no prospect of it ever being approved for building purposes.

By the time you have discovered the true nature of the proposition, your money will have disappeared, along with the proposing company and their apparent business.

Identity theft

Incredible as it may sound, there are people who will steal information in an attempt to “prove” that they are, in fact, you!

Armed with that false evidence of identity, they will then use it to do something such as making an application for a second mortgage on a property you own. If the application is approved and the requested funds are advanced, the criminals will then quickly disappear – never to be seen again. Instead, you will be left with the considerable confusion and the costly expense of legal action in trying to resolve the mess.

In practice, many such cases only go to show how difficult it is to prevent such identity theft when other people are pretending to be you. You are likely to be surprised by just how much information about you – your background, who you are, where you live, and what your work is – is hardly secret but readily available in the public arena.

As the charity Age UK warns, even individuals who have plenty of experience in making investments of one kind or another still fall prey to scammers and fraudsters.

Defences and solutions

To carry out their crimes, these crooks often rely on institutions, organisations, and individual victims, who fail to conduct sufficient and necessary checks and due diligence before parting with their money.

That’s why criminals typically prefer properties that are unoccupied before attempting the identity theft of the owner. Properties that are remote or otherwise difficult to access are also more difficult for unsuspecting potential investors to check out and verify before falling foul of some investment scam.

There are several steps you might take to reduce the risk of your becoming a victim of this type of fraud:

• do whatever it takes (or get someone else you trust) to view a property or land before investing in it;
• check the facts of the property or land through the Land Registry, local press, and the local authorities, well in advance of making a final decision about investing; and
• make sure any property you own is duly registered with the Land Registry and that you have requested immediate and direct communication about that registration if the property is put up for sale. You can also specify that it cannot be sold or offered as security on any loan or mortgage without written confirmation from your solicitor – with your solicitor under the necessary instruction also to confirm your identity.

The government has helpful advice on this and related subjects – it’s well worth reading.