An A to Z list of what you should know about Landlord’s Responsibilities and Insurance for residential let properties, let under Assured Shorthold Tenancies.
Joint Insured
If a property is jointly owned with a partner or other family members, then the insurance cover should be arranged in joint names, as all parties have a financial interest that they should protect. In some circumstances a Mortgagee (the Bank or Building Society providing the Mortgage monies) will ask that their name appears as a joint insured as well as one who has a financial interest in the property.
Keys
You should provide one set of keys for each Tenant and keep one set for you for emergencies. Letting Agents will normally manage this on your behalf and arrange to have duplicates cut as required.
Landslip
Movement of ground down a slope.
Leaseholders
If you are a leaseholder, you should check the terms of your lease and obtain the necessary written consent before letting.
Legal Expenses Cover
Cover is provided for irrecoverable costs and fees to pursue or defend claims involving a breach of a tenancy agreement. It should be clearly understood that insurers have several stringent conditions attached to the granting of this cover that must be strictly adhered to by the Landlord before a tenancy is granted. You should carefully read any Key Feature document supplied by an Insurer so that you are fully aware of their particular terms and conditions.
Letting Agents
Should you decide to employ the services of a Letting Agent you must expect to pay them, normally around 10% of the rental income per year, plus VAT.
Liability Insurance
As Property Owner and/or the Employer of Domestic Staff.
It is standard practice for most Landlord’s Insurance policies to automatically include liability cover.
Under cover for Buildings You are covered for Your legal liability as owner of the Buildings to pay damages and claimant’s cost and expenses for accidental bodily injury or illness; or accidental loss or damage to property. The standard limit of indemnity is £2,000,000 which most people find adequate. For those who do not find this figure adequate, say because of contractual conditions with a Local Authority, it is possible in most circumstance to get this increased to £5,000,000 upon payment of an additional premium.
Under cover for Contents You are covered for Your legal liability as owner of the Contents to pay damages and claimant’s cost and expenses for accidental bodily injury or illness; or accidental loss or damage to property.
In addition under the contents section you also have cover for Your legal liability as the employer of domestic staff where the injury or illness happens as a result of or in the course of their employment by You. The standard limit of indemnity in connection with the employment of domestic staff depending upon insurer varies between £5,000,000 and £10,000,000.
Loss Adjusters
Loss adjusters are impartial claims specialists appointed by an insurer to deal with a claim on their behalf. Loss adjusters' fees are paid by the insurance company concerned who rely on them to check claims for quantity, description and pricing. After discussions with the policyholder, the loss adjuster's report to the insurance company enables the company to process the claim without delay.
Loss of Rent
A good Landlord’s insurance policy will include, under both Buildings and Contents sections, cover for Loss of Rent following a claim in respect of an insured peril, such as a fire or escape of water, which then results in a loss of rent for the Landlord, because the property is uninhabitable. Cover is normally provided up to 20% of the section sum insured.
