However, for some, navigating through the insurance minefield of fact and myth, when it comes to what a policy does and does not cover, can be enough of a deterrent to avoid taking it out cover altogether. Now, the results from claim feedback forms received over the last two years, have encouraged Total Landlord Insurance to set the record straight when it comes to landlord insurance.
Void period myth:
Landlord insurance cover is only required when there is a tenant in situ.
Fact:
Accidents can happen at any time and are even more likely when the property is vacant so insurance must always be in place. Remember to check whether your policy restricts cover during void periods as not all policies allow you to make a claim under certain circumstances. This is extremely important when letting to students where void periods over the summer break often exceed the usual 30 day allowance provided by most policies.
Discount opportunities myth:
Customers will automatically be granted a discount if they have never previously claimed on their landlord insurance
Fact:
Most specific buy-to-let policies do not automatically offer no claims discounts, rather insurers will offer discounts in return for certain behaviours such as being a member of a recognised landlord association, or by renting your property to certain types of tenant. Of course, insurers always will look to attract and retain claim free business but it is at their discretion. It is always advisable to ask.
“Any tenant” cover myth:
Provided a landlord has taken out insurance, they are free to rent the property to whoever they wish.
Fact:
Some policies might exclude certain categories of tenant including groups such as students, DSS recipients and asylum seekers. If you plan to let to these categories or simply wish to have complete freedom of choice, you may be advised to look for a policy that allows you to rent the property to any tenant category.
Damage by the tenant cover myth:
Any damage caused by the tenant will automatically be covered on my policy.
Fact:
Unfortunately, it is no longer safe to presume that this will be included automatically, in every buildings policy. You should ensure that your policy includes accidental, and increasingly important, malicious damage when you are going through a let property insurance comparison. Some policies provide the cover but restrict the amount you can claim and others may exclude tenant damage entirely.
Claims caused by tenant damage are the most frequent type of incident that landlord insurers experience. As a side issue, always take a deposit from your tenant which can be held back against damage caused by the tenant rather than make a claim under your policy. Don’t forget to protect the deposit with an authorised tenancy deposit protection scheme such as my|deposits.co.uk.
Excess myth:
It is not worth claiming for small occurrences at a rental property because the claim process is so difficult and the excess so high, it would not be worth it.
Fact:
Some policies might offer you a discount of up to 40% on the premium if you opt for higher levels of voluntary excess on the policy which might mean landlords decide to pay for smaller occurrences rather than claim. Results from the claims feedback showed that 98% of Total Landlord Insurance customers strongly agreed or agreed that it was easy to notify them of their claim and 83% rated the speed of settlement of their claim as Excellent or Good.
Eddie Hooker, CEO of Total Landlord Insurance said
“The feedback we received from customers is valuable in enabling us to understand landlords’ perceptions of the insurance market and it can be surprising how little people know even when they have held a policy for a long time.
Our advice would be to ask your insurer questions about what is and is not covered so that you can make the right decision, and go through your chosen policy carefully before you agree to it. Insurance should be there to make unfortunate incidence less painful so it is worth applying a little time in the first instance to ensure all your requirements are covered.”
