Is Your Investment Insured? 1st Aug 2015
Damage to a rental property can prove to be quite a headache. It is therefore essential that landlords have the right insurance policies in place in order to protect their investment. New research proves that the unexpected can, and does happen. Property damage can be a costly issue for landlords especially if the level of damage exceeds the value of the tenancy deposit. Tenants are expected to report any damages to the landlord or letting agency, and all parties then agree how replacements or repairs are going to be arranged and paid for – but agreements aren't always reached amicably.
Figures released by the National Landlords Association reveal an estimated 29% of UK landlords (400,000), have had their property damaged by tenants in the last 12 months. The figures also show that 8% (120,000) have had to make an insurance claim in the last 12 months. Landlords spend an average of 5% of their rental income on landlord insurance premiums. However a whopping 49% of landlords say they haven’t spent any money on insurance premiums in the last year, with 46% spending up to 10%. 4% of landlords have spent more than 10% on landlord premiums over the past year.
These latest figures come after recent budget announcements that insurance premium tax will rise in November from 6% to 9.5%. The new rate is expected to generate up to £1.75bn a year for the Treasury. Furthermore, landlords will no longer be entitled to any wear and tear allowance for their property. With budget changes coming into force, it is all the more important that landlords protect their investment by getting specialist landlord insurance.
The Key Place offers a comprehensive insurance package to all of our fully managed landlords. We will also manage the insurance claim and associated repairs as part of the package. If landlords do not take our insurance then they will have to manage the claim themselves, or The Key Place can manage the claim for a fee. Contact us for further information.