Rising house prices is great news, but beware of under insurance
With rising house prices up 7.7% annually* and a predicted 25% increase next year on buy to let lending**, the future for property investors is looking positive. Landlords, however, should be careful that they have adequate buildings insurance, as rising resale values may not always reflect the sum insured.
So says Richard Burgess, Director at Cover4LetProperty, the landlord insurance specialists. He adds: “While the latest trends are good for landlords, property owners should be aware that they may have investments that are under insured.
“Interestingly, we are seeing more claims being reduced due to properties being under insured. This could be for a number of reasons, from a landlord not realising that a sum insured needs to include a full rebuild value as well costs associated with clearing the site of debris and damage; to investors trying to save money on their cover and therefore not insuring their property for the full value.
“Investors should check that they have the correct insurance levels for their portfolio, as doing so now could save them money and stress in the future event of a claim”.
The Association of British Insurers has a useful tool on their website that allows the public to calculate the sum insured value of their property. It can be viewed here: http://abi.bcis.co.uk/
Ends
Contact:
Richard Burgess, MCIM, Director at Cover4LetProperty, telephone: 0845 863 9558 or email: richardb@alanblunden.co.uk
About Cover4LetProperty:
With roots going back to 1946, our clients can benefit from 67 years’ of experience in the landlord insurance marketplace. We are award-winning independent intermediaries and act on behalf of our clients in arranging their buy to let and unoccupied property insurances. Our service includes advising clients on their insurance needs, arranging insurance cover with insurers to meet those requirements and help with any ongoing changes that have to be made to their landlords insurance policies.
In 2011 we were proud to beat off some stiff competition for the award for Best Landlord Insurer in the prestigious The Money Awards.
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