CPR-Online.co.uk http://www.cpr-online.co.uk Landlord Insurance Wed, 25 Mar 2015 20:46:02 +0000 en-US hourly 1 http://wordpress.org/?v=4.0.16 Protection For You And Your Tenants http://www.cpr-online.co.uk/protection-for-you-and-your-tenants/ http://www.cpr-online.co.uk/protection-for-you-and-your-tenants/#comments Wed, 03 Sep 2014 11:15:19 +0000 http://www.cpr-online.co.uk/?p=464 Your Tenants Need Cover Too This is something that is q […]

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Your Tenants Need Cover Too

This is something that is quite often overlooked by the Landlord and the Tenent.

For the tenant who has just paid our for the first months rent, and the deposit, and any administration fees, and any moving costs, insurance is most likely the last thing on their minds. They are more concerned with getting into the property, and getting sorted out.

Although a normal home contents policy will give the basic degree of cover for most purposes it is not specifically designed for tenants. Therefore, you may find major gaps in the cover you requie. Often the minimum sum you can insure for will be far in excess of what the tenant needs, something like a minimum of £10,000 to £12,000.

Most specialist tenant policies will provide the tenant with cover starting from £2,500 upwards and will usually cover accidental damage that they may cause to the landlords fixture, fittings, buildings and contents.

Tenents Insurance For Buy To Let Properties

As anlandlord 5 example, lets say the tenant accidentally damages a kitchen work surface with a hot pan, or causes damage to the carpets with a hot iron, then these costs would be covered. Usually the tenancy agreement would make the tenant legally liable for such damage, with the costs being deducted from their deposit when they check out.

If the tenant has adequate cover, then these damages would be covered, therefore protecting their deposit.

There are thousands of examples of tenants who have experienced loss through fire, floods or even burglary, which has damaged their contents and they have then discovered that the landlords insurance does not cover their personal possessions. So that they have been left with the cost of replacing the items themselves.

Additional Contents Cover

Any items that a tenant takes into the property, it should be their responsibility to insure. Most policies will give an option for basic cover which can usually be extended to cover higher risk personal items which are taken outside the property. For instance, when they go on holiday, items such as cameras, clothes, jewellery, would then be covered.

In certain inner city post codes (high-risk areas) there will usually be a requirement to have minimum-security locks on doors and windows.

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Energy Saving Tips For Landlords http://www.cpr-online.co.uk/energy-saving-tips-for-landlords/ http://www.cpr-online.co.uk/energy-saving-tips-for-landlords/#comments Thu, 28 Aug 2014 13:05:42 +0000 http://www.cpr-online.co.uk/?p=480 Reducing energy usage around your rental properties can […]

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Reducing energy usage around your rental properties can help save your tenants money and help the planet too. Reducing energy doesn’t have to be complicated, or hard work. Here is the BlueMoonInsurance.co.uk guide to the various ways it can be achieved.

Landlord-energy-saving-guide

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Buy To Let Cover Explained http://www.cpr-online.co.uk/buy-to-let-cover-explained/ http://www.cpr-online.co.uk/buy-to-let-cover-explained/#comments Sat, 23 Aug 2014 10:33:21 +0000 http://www.cpr-online.co.uk/?p=444 What Is Buy To Let Insurance? Buy to let cover is more […]

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What Is Buy To Let Insurance?

landlord3Buy to let cover is more often than not called Landlord Insurance. Why? Because if you are renting out a property for residential purposes then you are the Landlord.

The normal household cover may not provide the necessary cover that is required for rented residential properties. The additional benefits of a buy to let policy will protect you against loss if something should happen. It is a particular type of cover that protects the owners rented-out property against risks such as floods and fires.

All contracts will be different and are subject to various terms and conditions, therefore you should discuss at length, and in detail, your specific requirements with the broker that you intend to purchase the policy from.

There are usually two main elements to the policy, they are, the Buildings cover and the Contents cover.

The Key Elements:

The buildings cover will insure the property itself. That is the bricks and mortar, the roof, the floors, and all the bits that connect them together.

You should make sure that this cover includes any outbuildings such as garages or sheds and any fitted interior units, such as fitted wardrobes, fitted kitchens etc.

And contents cover will insure all the items that go inside the property. Such as the furniture, any electronics such as televisions and kitchen gadgets, any decorative additions, such as pictures or paintings.

Who Needs Buy To Let Cover?

Anybody, an individual or an organisation, that has purchased property and are looking to rent it out for residential purposes. Or putting is simply, if you have a house that you want to rent out, so that you can make a bit of money from it, then you need a buy to let policy.

The Benefits:

When you are looking for your policy make sure that it covers you against:

Fire
Theft
Vandalism/malicious damage
Lightning
Oil or water leakage
Smoke Damage
Storm (other than gates and fences)
Subsidence
Burst pipes
Impact from vehicles, falling trees, animals, aircraft, aerials and masts
Civil commotion (riots)
Earthquake

Note: The level of cover you receive will vary from company to company. So make sure you check the policy details to see exactly what you are getting.

Public Liability Cover Is Important

Public liability cover will protect your legal liability for death or bodily injury caused to members of the public in relation to your property. What this means is that should a tile fall off the roof and hit a pedestrian on the head, then you will have the cover you need.

You can also obtain Additional Cover if you think it is necessary, which could depend on where you are living. This additional cover can be extended to include Terrorism, Legal Expenses and Accidental Damage.

Some Types of Cover are Required by Law.

For example, Employers liability cover is a legal requirement for any staff you employ, this is available as an additional cover.

Loss Of Rent

Loss of Rental Income. You should be able to extend the policy to protect against tenants defaulting on payments, or any other loss of rental income. The policy should reimburse you for some of the costs.

Having a good policy brings you Peace of Mind and ensures that you can expect a reliable return on your investment, whilst minimising some of the risks.

Some Things To Watch Out For:

Optional covers such as accidental damage or legal expenses, may or may not be included as standard in the cover by some providers. Other insurers may charge you an additional amount. When comparing quotes make sure you compare the same types of cover

Make sure you are aware of the excesses that apply to different types of claims with different insurers. As this may influence your decision on which types of cover you require.

Providers companies may not cover certain types of tenants, ie students, while others will cover them. Make sure the tenant type input accurately reflects who will be renting the property. This may also influence the type of property you are looking to purchase and the type of tenents you are looking for.

Check Whats Excluded From Your Policy

You will know “Whats Included In Your Policy”, but just as important, you should know what is Excluded. Read your policy documents very carefully and any exclusions that may be applied. Some specific activities may be excluded by the insurer for various reasons.

Multiple Properties: For convenience the policy should cover more than one property, or be able to be increased to cover more than one property.

The property sum insured should be the rebuild sum of the property.

Note: This is not the same as the sum it was purchased for. If you enter the purchase price of the property, you may end up paying more for your insurance cover than you need.

When To Start Your Cover

Insurance prices change quite often, so evaluate your required start date. The cover should ideally start on the day you purchase the property, or the day your previous policy runs out.

And Finally, check the type of cover you require by comparing several insurers to make sure the policy being offered is at the right price and degree of cover that you need, and try to use someone who can offer you quotes from more than one provider.

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Buy-to-let Market is Booming Again http://www.cpr-online.co.uk/buy-to-let-market-is-booming-again/ http://www.cpr-online.co.uk/buy-to-let-market-is-booming-again/#comments Fri, 01 Aug 2014 11:19:35 +0000 http://www.cpr-online.co.uk/?p=468 After the crisis of confidence of recent years the buy- […]

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landlords1After the crisis of confidence of recent years the buy-to-let market is again booming. Earlier worries that interest rates were on the up and property values would crash are firmly behind us. So, fuelled by rising rental yields confidence, landlords have been snapping up new properties and remortgaging for cheaper deals.

In the final three months of last year, rental incomes increased by an average of 3.3%. At the same time the rental yield, income as a percentage of the propertys value, edged up from 6.42% to 6.45%. The latest report from the Council of Mortgage Lenders (CML) also shows that the value of new buy to let mortgages increased by 47% in the second half of 2005 over the preceding six months whilst the number of these mortgages rose by 39%.

Buy To Let Mortgages Boom Continues

Indeed, we expect the boom to extend throughout the coming years. It will be powered by the steady increases in house prices, a healthy demand from tenants, especially the first time buyers who remain priced out of the property ladder and a glut of cheaper buy to let deals.

Buy To Let Mortages

Mortgage lenders are happy as well. Industry figures show that buy to let mortgages are now a safer bet for them than homeowner mortgages. According to the CML, percentage of arrears in buy to let mortgage is now lower than that for homeowner mortgages – and the arrears trend for buy-to-let is improving whist for homeowners its getting worse.

Not surprisingly, the mortgage lenders have responded by relaxing some of their lending criteria and are aggressively promoting buy-to-let again.

In the past, buy-to-let lenders have required monthly rental income to exceed mortgage payments by 30%, so if a mortgage was costing £750 per month, the rental income needed to exceed £975. But now several lenders have relaxed this criteria. The reasons not just the improved risk profile. Over the last six or seven years, house prices have risen faster than rental income yields, making it increasingly difficult for landlords to meet the +30% criteria. So now the lending average is closer to +25% although Northern Rock and a few others are happy to lend where the income simply equals the mortgage payment.

Simultaneously we have seen a trend for lenders to increase the percentage of the propertys value they will lend on. Whilst 75% used to be the maximum level, the average is now closer to 85% with Northern Rock lending up to 87% and GMAC being prepared to stretch to 89%.

Interest rates on buy-to-let have also fallen. 4.75% is available from the Mortgage Trust on a three-year fix whilst 4.79% is available from the West Bromwich Building Society fixed for a two years. Both these deals incur a 1.5% arrangement fee. On the West Bromwich deal, when you recalculate the interest rate and include the arrangement fee amortised over two years, the equivalent rate rises to 5.54%.

Arrangement fees should not necessarily be a problem for landlords whose prime concern is cash flow. For these landlords it can be worth paying a large fee to obtain a low headline interest rate. Thats because the rental income/mortgage payment calculation is based on the headline interest rate and this reduces the rental that has to be charged in order to meet the lenders income criteria.

If you are interested in joining the buy-to-let boom, remember to do your homework. Carefully research the local rental market – look at the rentals being achieved, the trends in property prices and levels of vacant to let properties.

And be especially careful especially if you are considering a city centre. Some lenders are becoming concerned at the potential oversupply of new flats and apartments in city centres they believe are becoming overpriced. Developers are responding by offering tempting cash back and discount schemes rather than reducing prices. But this can sometimes serve to mask the problem of over pricing. Realising this for some cities, lenders are reducing the value to lending ratio back to 75%.

Also remember that its important to budget for the inevitable periods when the property is empty. In an essentially demand and supply market, if the rental market in your area becomes oversupplied you could be hit by lengthy vacancies or be forced to reduce your rental prices.

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A Necessity To Protect Your Investment http://www.cpr-online.co.uk/a-necessity-to-protect-your-investment/ http://www.cpr-online.co.uk/a-necessity-to-protect-your-investment/#comments Sun, 13 Jul 2014 11:06:10 +0000 http://www.cpr-online.co.uk/?p=459 To lower the risk of rental voids, you may want to have […]

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being-a-landlordTo lower the risk of rental voids, you may want to have a look at “landlord protection insurance”, which is also known as “rent guarantee” cover. This is often optional but will protect you against loss of rental income. However, there are usually conditions applied to these policies, so make sure to check them over carefully. This is mainly for the conservative investor.

If you are using a Letting Agent, then part of their service package would hopefully include guaranteeing three months rental income in the event of them being unable to find tenants. In reality, an agent should normally be able to find new tenants very quickly anyway.

If they cannot, then you may want to think about changing agents. Make sure this cover is paid for and set up before any tenants move into your property.

As this is an expense you can also offset it against your tax as well.

Squatters And Buy To Let Landlord Insurance

Looking at it from the “Worst Possible Case” angle, if you should have a problem with non-paying tenents or squatters, then your biggest headache is going to be the financial impact of employing a Legal Firm to get them out.

Due to recent legislation it is now easier for you, the landlord to regain pocession, than it used to be. But to minimise this risk as far as possible, you should look at “Legal Protection” cover. Or make sure that it is included in your policy. This is a relatively cheap way to eliminate the financial impact of the risk, as your legal costs would be covered.
Landlords And Tenents

Generally, the people who rent residential properties are not emotionally attached to the property in the same way as if they actually owned the property. So, you or your agent should have them credit checked, and obtained a deposit and rent in advance, before letting them have access to your property. Therefore, the tenants should be motivated to care for the property, so that they protect their deposit.

However, people being people, as some time or other you may experience the problem of tenents causing damage to your property, either accidentally or deliberately. If your policy contains “Legal Expense cover” then you will be protected against the high cost of employing a Legal firm to recover the cost of repair or replacement.

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Questions About Buy To Let Building Cover http://www.cpr-online.co.uk/questions-about-buy-to-let-building-cover/ http://www.cpr-online.co.uk/questions-about-buy-to-let-building-cover/#comments Sat, 21 Jun 2014 11:12:22 +0000 http://www.cpr-online.co.uk/?p=462 Some Frequently Asked Questions About Buy To Let Buildi […]

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Some Frequently Asked Questions About Buy To Let Building Insurance

How much is the buildings sum insured?
This is the rebuild cost of the property. As an example, lets say your property is completely destroyed by fire. This would be the cost that would be needed to totally re-build your property.

What does accidental damage cover?
Standard cover usually provides cover for major risks such as fire and flood. If accidental damage cover is included, cover will also be available if the property is accidentally damaged by you or your tenants.

I do not recognise the Insurers name?
You may not immediately recognise some of these insurers, this is because they usually specialise in dealing only through brokers and would not normally sell direct to the public. All the insurers available are regulated and authorised by the Financial Conduct Authority, the UKs regulatory body. You can check the providers credentials with them.

What is Normally Included?

Buy to Let Building Insurance cover would usually include the following:

Fire,
Flood,
Earthquake,
Storm or Tempest,
Lightning,
Explosion,
Impact by Road vehicle or Animal,
Escape of Water from and Frost Damage to fixed water tanks, apparatus and pipes,
Leakage of Oil or gas from any fixed domestic heating system,
Theft or attempted Theft,
Riot, or Civil Commotion,
Malicious Damage,
Subsidence, Landslip or heave,
Falling trees or branches, telegraph polls, pylons or lampposts,
Falling Aerials or their fittings,
Property Owners Liability Insurance,
Loss of Rent by peril or Alternative Accommodation.

All policies can and do vary. Make sure you read the policy very carefully before agreeing to it, making sure you understand exactly what is included and what is excluded.

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Parents ‘should check insurance covers expensive gadgets’ http://www.cpr-online.co.uk/parents-should-check-insurance-covers-expensive-gadgets/ http://www.cpr-online.co.uk/parents-should-check-insurance-covers-expensive-gadgets/#comments Tue, 06 May 2014 10:46:12 +0000 http://www.cpr-online.co.uk/?p=351 Expensive gadgets bought by parents for their children […]

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Expensive gadgets bought by parents for their children should be accounted for under home insurance policies, according to a home insurance company.

Direct Line Home Insurance indicates that the average children’s bedroom is worth £1,498, meaning that the UK’s parents are splashing out over £20 billion on their offspring’s variety of gadgets.

Some of the objects that need to be checked to ensure that they are covered under home insurance policies include DVD players, laptops and games consoles, Direct Line suggests.

The home insurance company’s research also shows that the worth of a child’s bedroom today is four times more than the overall worth of their parent’s rooms at the equivalent age; this could be interpreted as another reason to check home insurance policies.

Direct Line Home Insurance spokesperson Andrew Lowe says: “As parents know all too well, kids need to have the latest electronic goods in order to keep up with their mates.

“The rising cost of kids’ rooms isn’t just driven by peer pressure though, as in many cases electronic equipment such as computers and software are essential for a child’s educational development.”

He added: “In any case, it is important that parents keep track of any expensive purchases that they make for their children and ensure that they are accounted for under their home insurance policy.”

Further findings from Direct Line show that 20 per cent of parents are putting their own lives on hold to provide for their children.

In related home insurance news, police in Croydon are focussing their attentions on a group of fraudsters who are making bogus home insurance claims.

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Garden-lovers reminded to be prudent http://www.cpr-online.co.uk/garden-lovers-reminded-to-be-prudent/ http://www.cpr-online.co.uk/garden-lovers-reminded-to-be-prudent/#comments Tue, 06 May 2014 10:28:54 +0000 http://www.cpr-online.co.uk/?p=260 With summer just around the corner, green-fingered home […]

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With summer just around the corner, green-fingered homeowners are receiving a timely reminder to make sure their outdoor property is properly covered by their home insurance.

UK consumers spend over £4 billion on plants, shrubs, lawns, garden furniture and outdoor features but many people neglect their gardens when it comes to protecting their property.

A recent Gardening Which? survey revealed that 1.6 million households have had items stolen from their gardens, with an estimated £90 million worth of goods being swiped by thieves.

In addition, a further 60,000 people claim to have been victims of garden vandalism and one in ten people have suffered from damage caused by their children or grandchildren.

The task of rebuilding a damaged garden can be extremely daunting but the right insurance policy can provide you with complete peace of mind, paying for the expenses incurred to return your garden to its former glory.

Andrew Goodsell, chief executive of home insurance provider Saga, comments: “Gardens can really enhance the look of a house – indeed our recent research shows that 82 per cent of people regard the garden as the most important feature when house-hunting.

“People often invest a great deal of time and money on sprucing up their garden, which is why it makes sense to protect your garden and equipment from theft or damage.”

Simon Stanney, head of product at over 50s insurer RIAS, warns that many people wrongly assume that certain garden items are covered under their standard home insurance policy.

“People are spending more time and money in their gardens than ever before, so it is important that they check that their insurance policy offers the right level of cover for their gardens and the buildings in them,” adds Mr Stanney.

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Home insurance tips offered for potential flood victims http://www.cpr-online.co.uk/home-insurance-tips-offered-for-potential-flood-victims/ http://www.cpr-online.co.uk/home-insurance-tips-offered-for-potential-flood-victims/#comments Mon, 05 May 2014 10:45:52 +0000 http://www.cpr-online.co.uk/?p=349 Home insurance advice is being offered following the En […]

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Home insurance advice is being offered following the Environment Agency’s announcement that spring tides will hit the UK’s coasts this week.

Direct Line, a home insurance company, has suggested that important documents, including home insurance details, should be put in a safe place.

Likewise, the same advice applies to passports, bills and photographs, in order to save them from damage.

Additionally, Direct Line indicates that consumers should be ready to turn all gas and electricity off in the event of flooding and ensure that the property is properly maintained; if not, further accidents could occur, which may result in an increase in home insurance claims.

Furthermore, the insurer suggests that if flooding disaster does occur, consumers should contact their home insurance provider in order to gather advice on reputable firms that can undertake the repair work.

Andrew Lowe, head of home insurance for Direct Line, said: “It can be a slow process sorting out repairs in a flooded area because builders and tradesmen are in such demand.

“Your insurer should be able to put you in touch with a list. In the past we have drafted in builders from other parts of the country to deal with floods.”

Overall, Direct Line warns consumers who think their homes are at risk from flooding to ensure that they hold the correct home contents insurance, to avoid problems later down the line.

In related home news, Halifax Home Insurance announced last week that parents are adding to the cost of their offspring’s homes via DIY projects, but should be doing so with correct home insurance cover.

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Homeowners advised about flood damage limitation http://www.cpr-online.co.uk/homeowners-advised-about-flood-damage-limitation/ http://www.cpr-online.co.uk/homeowners-advised-about-flood-damage-limitation/#comments Sun, 04 May 2014 10:45:32 +0000 http://www.cpr-online.co.uk/?p=347 Homeowners have been given advice on coping with the in […]

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Homeowners have been given advice on coping with the increased risk of flooding this autumn, which could potentially save them from having to make a costly home insurance claim.

A report from the Environment Agency predicts that this year could see the highest tides in over two decades, meaning some coastal defences could be overwhelmed in the event of a storm.

In particular, it is thought that south-east England is at a particularly high-risk of flooding, with Norfolk, Suffolk and Essex all pinpointed as areas of concern.

Floodwater can potentially damage both the foundations of a house and the contents within, so homeowners in these counties may wish to review their building insurance and home contents insurance cover.

Home insurance provider Lloyds TSB Insurance has now compiled the guide Calm Before the Storm to suggest preventative measures that could minimise flood damage.

For instance, it is recommended that homeowners move electrical items upstairs or raise them off the ground with bricks, while it is also suggested that people unplug electrical appliances and shut down the electricity supply if floodwater starts seeping in.

Garry Hurry, a spokesman for Lloyds TSB Insurance, said: “Burying your head in the sand is no defence against the very real threat of serious flooding.”

“Thinking ahead and devising a plan to help reduce the risk can help homeowners minimise any potential disruption. Our new guide is essential reading for anyone who wants to prepare for the worst case scenario.”

In recent weeks, the issue of severe residential flooding has received mainstream exposure on the big screen.

An Inconvenient Truth, a documentary film featuring former US politician Al Gore, presents rising sea levels as part of the wider problem of climate change.

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