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.
Quotations/Bids for Landlord’s Insurance
We have quickly become one of the UK’s most visited websites for those wishing to arrange insurance for their residential let properties, whether cover is just required for buildings or contents, or a combination of the two. We have a good reputation of providing excellent service levels, with most documentation being turned around the same day that instructions are received. We aim to be competitive at all times and for all circumstances. Our Landlord’s insurance scheme(s) are some of the few that recognises claim free experience giving a No Claim Bonus discount.
Radon
A tasteless and odourless but deadly naturally occurring radioactive gas. Find out more at www.hpa.org.uk/. The gas is the second biggest cause of lung cancer in the UK after smoking. It comes from the decay of uranium and radium found naturally in rocks and soil. It affects both new as well as old houses. The levels of Radon gas varies considerably from area to area. Radon is now a mandatory question on all conveyancing. If a problem is found in a property it can usually be sorted for around £1,000 by specialist measures, such as improving ventilation under floors. Radon reports can be ordered on line at www.landsearch.net/localauthority.asp.
Rebuilding Costs
CHECKING YOUR SUM INSURED.
The ABI (Association of British Insurers) in conjunction with BCIS, the RICS Building Cost Information Service provide an online facility for checking building sums insured.
Most domestic house insurance policies require that the sum insured is the full rebuilding cost of the property. It is the responsibility of the insured to get this figure right.
BCIS has been commissioned by the Association of British Insurers to provide guidance figures for the rebuilding cost of a home to allow householders to check their sums insured.
Their calculator gives a general indication of rebuilding costs for many common properties within the UK, but it should be noted that it is not appropriate for all houses and the rebuilding cost of even similar houses can vary depending on individual circumstances.
Find out more by visiting their website www.bcis.co.uk/
References
Any Landlord should consider obtaining written references for any possible tenant. These are a requirement if you are also seeking Rent Guarantee Insurance. References are always obtained by most, if not all, Letting Agents as part of their standard business practice, which might also include credit searches.
Rent Guarantee Insurance
Extension of Cover – Normally arranged in conjunction with Legal Expenses Cover.
It should be clearly understood that insurers have several stringent and onerous conditions attached to the granting of this cover, that must be strictly adhered to by the Landlord before a tenancy is granted and signed, if a successful claim for non-payment of rent is to be made. The cost of the cover is based on the monthly rent being charged and can be quite expensive when viewed in relation to the cost of buildings and contents cover. Most insurers will only insure up to a maximum of £2.000 per month. You should carefully read any Key Feature document supplied by an Insurer so that you are fully aware of their particular terms and conditions.
Restrictive Covenants
A Restrictive Covenant is a legally enforceable deed, usually created to protect specified rights concerning the use of a property or land. A restrictive covenant need not be new; it may have been drafted hundreds of years ago, specifying that a given plot of land cannot be used for development or certain purposes.
Common examples of Restrictive Covenants, a) Not to erect any building or structures on the land that has been acquired, b) Not to use the land for any business activity, c) Not to use the land other than for agricultural use and not to carry out any building or residential development.
A Restrictive Covenant insurance policy (also known as Restrictive Covenant Indemnity insurance or Restrictive Covenant Contingency insurance) provides for any loss in the value of the property and the legal expenses incurred in defending an attempt to enforce the covenant, subject to the selected limit of indemnity.
Unlike most insurance policies, a restrictive covenant insurance policy lasts in perpetuity and as such can be usually be passed on to future owners of the property. For specialist advice we suggest that you look at such sites as www.stride.co.uk/
RICS
The Royal Institution of Chartered Surveyors.
With around 100,000 qualified members and over 50,000 students and trainees in some 140 countries, RICS provides the world's leading professional qualification in land, property, construction and the associated environmental issues.
An independent, not-for-profit organisation, RICS acts in the public interest: setting and regulating the highest standards of competence and integrity among their members; and provides impartial, authoritative advice on key issues for business, society and governments worldwide.
Find out more by visiting their website www.rics.org/
Smoke Alarms
All properties built since June 1992 must have been fitted with mains powered smoke detector alarms from new. Although there is no legislation requiring smoke alarms to be fitted in other ordinary tenanted properties, it is generally considered that the common law ‘duty of care’ means that Landlords and their Agents could be liable should a fire cause injury or damage in a tenanted property where smoke alarms are not fitted. It is therefore strongly recommended that any Landlord fits at least one alarm on each floor (in the hall and landing areas).
Standard Insurance Cover
Includes in addition to the standard Perils cover for the following:-
Under the Buildings section:
Loss of Rent as a result of an insured peril
Accidental Damage to underground services
Accidental Damage to fixed glass and sanitary fittings
Your liability to the public as owner of the Buildings
Full Accidental Damage to the Buildings (optional cover extension)
Under the Contents section:
Contents temporarily removed from the Home
Accidental Damage to televisions, video players, aerials, dishes and CCTV cameras fixed to the Home
Accidental Damage to mirrors, glass tops and fixed glass in furniture, cookers and ceramic hobsContents in the open with the property boundary (Limits and Exclusions apply)
Replacement of external door locks following loss of keys
Accidental Loss of domestic heating fuel and metered water (Limit applies)
Loss of Rent as a result of an insured peril
Your liability to the public as owner of the Contents and in respect of the employment of domestic staff
Full Accidental Damage to the Contents (optional cover extension)
Subsidence - What is subsidence?
Subsidence is the downward movement of the ground supporting the building. Particular problems arise when the movement varies from one part of the building to another.
It can be caused by: Certain soils - Clay soils are particularly vulnerable to subsidence since they shrink and swell depending on their moisture content. Vegetation - Trees and shrubs take moisture from soils causing them to shrink. This is especially so during long periods of dry weather as roots extend in search of water.
Leaking Drains - Damaged drains can soften or wash away the ground beneath the foundations of a building.
Less commonly, problems may occur where properties are built over, or close to, mine workings.
Subsidence damage to walls, gates, fences, patios, drives and swimming pools is not covered unless the Home is damaged at the same time and by the same cause.
Sums Insured (Buildings and/or Contents)
It is your responsibility to make sure that the amount you insure for represents the full cost of reinstating the property concerned.
How much to insure for:
For Buildings, this means the full cost of rebuilding the property including any outbuildings, plus an amount for extra charges that could be involved in rebuilding such as demolition costs, architects’ and surveyors’ fees and meeting the requirements of local authorities.
For Contents, this means the full cost of replacing all Your property at today’s prices.
It’s important that you insure for the full amount as the ‘sums insured’ are the maximum that an insurer will pay out in the event of a claim.
Guidance on rebuilding costs can be found at http://abi.bcis.co.uk/.
Remember if you have recently had a survey done; say because of a mortgage application, the surveyor in their report would have stated a reinstatement insurance figure for buildings, which will save you the worry.
