As the rental market continues to go from strength-to-strength within the United Kingdom, it’s currently boom time for landlords of all experiences and backgrounds. But while the impressive yields that the sector is currently enjoying are there for all landlords to reap, a haphazard approach to insuring properties is threatening to throw a real spanner in the proverbial financial works.
With recent research by comparison website Incahoot suggesting that approximately one in four residential landlords are not protected by a suitable home insurance policy, landlords are exposing themselves to unnecessary risk in the event of damage, fire or the destruction of their property.
“A failure to insure could lead to potentially devastating financial consequences”
While the size of that figure would suggest many experienced landlords are failing to adequately insure their properties, the influx of ‘accidental landlords’ into the rental market can arguably be attributed to the size of that statistic.
Many accidental landlords – those who have rented properties as a result of circumstance due to the stagnant property market – will have had few qualms about earning a baptism of fire in the sector, given the fantastic yields currently available. But with many having little-to-no experience of the administrative side of property rental, the notion of insuring properties often falls to the bottom of the agenda.
When leasing your property to tenants, this change of circumstance will invalidate the terms of many existing insurance policies and can potentially leave landlords seriously out of pocket should the worst happen. But far from just being unaware of this factor, it appears some landlords are unaware that landlord-specific policies exist full stop.
Incahoot’s findings also determined that nearly 43 percent of respondents didn’t realise landlord insurance had even existed, with another quarter believing that this sort of policy was identical to normal residential insurance – figures that make for concerning reading given the likely continued presence of accidental landlords within the market.
“Landlords of all experiences must start protecting themselves”
No matter what your background or experience in letting property, it’s absolutely vital that you take out an adequate insurance policy for your property. From flood and storm to damage, to fire and the threat of criminal activity, the array of risks that any property faces is greater than you may think.
Assumptions can be dangerous at the best of times, but when it comes to property insurance policies they can often produce crippling monetary consequences. Always ensure that your property is covered by the right policy and if you’re unsure , never hesitate to ask.
