These leasehold Landlords who are not responsible for buildings insurance can now insure their permanent fixtures and fittings the freeholder’s building policy will not cover.
Given an average bathroom suite alone is typically priced at £1,0001 the value of fixtures and fittings in a rental property can be significant. The new cover will protect landlords renting out properties by covering them against the risk of damage to these ‘Fixtures and Fittings.’
In addition to covering their contents and floor coverings (carpets, vinyl, laminate or tile floors) there is an option to cover permanent internal fixtures and fittings, kitchen(s), bathroom(s), internal doors including door furniture owned and provided by the leaseholder and not insured by any Buildings insurance policy. The policy excludes damage to walls, ceilings, concrete flooring and floorboards, external doors and windows, pipes, cables and services which should be covered by the freeholder’s buildings policy.
The cover insures fixtures and fittings in event of incidents such as fire, theft, flood or escape of water. The risks of water damage in a property are highlighted by data from the Association of British Insurers (ABI), which reported insurers pay out around £2.5m2 every day to customers who’ve made ‘escape of water’ claims on their home insurance.
Jamie Chaplin, Landlord Business Manager at Direct Line for Business, commented: “We are continually evolving our landlord insurance product to meet the needs of customers. Our expansive cover for landlords renting out leasehold properties helps them protect their investment by allowing them to insure their internal permanent fixtures and fittings which aren’t covered under the freeholder’s buildings policy.”
