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Where a
property is mortgaged, buildings insurance is a mandatory
requirement of all Lenders. Additionally,
property owners need the reassurance that they
will not be faced with substantial costs for
damage, which would be covered under such a contract.
Many insurance contracts have restrictions and conditions
automatically applied if the property is not occupied
by the owner, and, indeed a good number of insurers
will not offer cover for rented property.
It is a condition of all policies that ‘Material
Facts’ are declared to the insurers. Material
Facts are those which will influence an insurers decision
whether to offer cover, and on what terms and conditions.
Knowing that the property is to be let is a ‘Material
Fact’ and must be disclosed. Failure to tell
the insurers could result in claims being declined
or the policy being cancelled when a claim is notified.
CRL has arranged a Buildings insurance policy ‘lets-cover’ which
is underwritten by AXA Insurance UK plc, specifically
designed for Landlords. The scheme offers comprehensive
cover at competitive premiums.
Additionally, cover for Landlords Contents is available,
and should both buildings and contents be selected
a 10% discount is applied to the premium.
Landlords who choose to retain their existing policies
may find that either they are not suitable, or that,
in the event of a claim, they may not be covered.
One further advantage, particularly for Landlords
living abroad, is that CRL will act on their behalf,
negating the need for them to return to the UK in the
event of a claim.
Policies are administered by Heath Lambert Insurance
Services.
Landlords Buildings Insurance - Summary of Cover
This policy covers damage to the rented property due
to all the main insurance perils:
- Fire
- Storm
- Flood
- Theft or Attempted Theft
- Malicious Damage by Tenant
- Lightning
- Explosion and Earthquake
- Escape of Water or Oil
- Subsidence
- Ground-heave and Land slip
- Collision by Aircraft, Road or Rail Vehicles, or
Animals
- Falling trees or aerials
Accidental Damage is also automatically included within
the premium rate charged (this is either excluded under
a standard policy or charged as an additional premium)
Buildings Insurance also gives up to £2,000,000
of Property Owners Liability cover.
Cover is also available for Loss of Rent or Alternative
Accommodation while the property is not occupied because
of loss or damage insured under the policy, up to a
maximum of 30% of the Building sum insured.
The Buildings premium is based on the Rebuilding Cost,
which may be significantly different to the purchase
price/property value, and is determined by the ‘lets-cover’ web-site.
It is calculated using the property post-code, year
built, number of bedrooms and property type (e.g. semi-detached
house).
Cover applies even when the property is unoccupied
between rentals with the condition that the property
must be inspected at least every 2 weeks.
Lets-cover insurance provides the landlord with up
to £500,000 sum insured thus ensuring there is
no risk to the landlord of under insuring and having
to reduce claims settlement.
The policyholder is responsible for the first £50.00
only of all claims under these policies (£1,000
if subsidence)
The minimum premium is £60.00 + IPT.
Policies are administered by Heath Lambert Insurance
Services.
Full policy details are available
upon request.
Get a quote on-line
Landlords Contents Insurance – Summary
of Cover
This section insures against the same perils as
defined under the Buildings section with the added
benefit of Theft and Malicious Damage (Again, these
are usually excluded or charged as an additional
premium) by the Tenant. Also included is Accidental
Damage cover for TV, Radio and Audio Equipment.
The sum insured is based on the replacement costs
as new of the damaged or stolen items. For landlords
letting their property on a part furnished basis,
cover is available from £5,000.
Claims will be settled on a new for old basis,
with the exception of clothing, household linen
and pedal cycles, where a deduction will be made
for wear and tear.
Whilst the policy normally covers sums up to £30,000
higher amounts can be referred for approval to
AXA Insurance UK plc.
All claims are subject to a £50.00 excess.
The minimum premium is £60.00 + IPT.
Remember, if a landlord chooses both buildings
and contents cover they will receive a 10% premium
discount.
Policies are administered by Heath Lambert Insurance
Services. |
