Virgin landlords warned not to forget insurance

With an 80% increase in “virgin landlords” over the past two years* driven by low interest rates and a slow but steady rise in house prices, around 29,000 people became first time property investors in 2012*.

“It is important, however” warns Richard Burgess, Director at Cover4LetProperty – the landlord insurance specialists - “that investors don’t forget the importance of having adequate insurance to protect their property”.

He cites “horror stories” of first time investors who got caught out by:

• using residential home insurance to protect their investment, not realising that this is not valid for a Buy to Let (BTL) property;
• forgoing insurance in its entirety, breaking the terms of their contract with their mortgage provider (who insist on having adequate buildings insurance in place at the very minimum) and leaving themselves wide open to liability claims (should someone injure themselves on or around their property due to perceived negligence);
• thinking that their standard landlords insurance will cover a property that is vacant for more than 30-45 consecutive days – in most cases, it will not, and unoccupied property insurance will be required;
• choosing cheap landlords insurance that does not cover issues such as subsidence or malicious damage by tenants as standard (even some experienced investors assume that these elements of cover are standard with all policies – they are not).

Mr. Burgess adds: “It is imperative that new and existing landlords ensure that they have adequate cover for their investment. Otherwise, they face breaching their mortgage terms as well as putting themselves at a potentially huge financial risk.”

Cover4LetProperty recently launched a free Beginners Guide for new landlords that discusses the above, plus everything a “virgin landlord” needs to know about property investment.

Ends

*The Telegraph newspaper 25.10.13

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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