While most houses owned by buy-to-let landlords tend to be relatively conventional in construction, this is by no means always the case. ‘Standard’ or ‘conventional’ construction is generally defined as applying to properties built of bricks with a slate or tiled roof. Obvious examples of non-standard properties include timber-built premises and those with thatched roofs, there are however many other forms of construction that demand special attention from insurance companies.
Perhaps one of the most common non-standard forms of building was once the post-World War 2 prefabricated home. But there have been many periods in the past when the need for rapid construction of homes has led to some experiments with building techniques, as well as some of the more deliberate attempts to create unique properties. Building regulations before the mid 20th Century were far less restrictive than latterly and this could have resulted in some unusual builds.
Premiums
One of the questions insurance companies ask, when you take out a Landlord Insurance policy with them, relates to the construction of the property. As a general rule, in the event of inability to confirm that the property is of standard construction, many insurance companies will ask for an additional premium.
Difficulties and delays with claims
It is important to be aware that non-standard construction could lead to delays – and additional costs – in rebuilding after a fire or other damage. This means that care must be taken in assessing the right level of sum insured for the property. Where special materials have to be obtained to match existing ones, this can add considerably to the rebuilding cost and thus the amount of cover required.
The most obvious example of this is where the property is ‘listed’ and has to be rebuilt in a particular form and using as nearly as possible original materials. This can be very costly and you should seek professional advice if you own a listed building.
Making Sure
If you are uncertain about the construction of your building, you should ask for help; it is better to take a little extra care, than to find that your landlords’ insurance is inadequate, when the time comes for a claim.
Getting the Right Advice
It is important to seek independent professional advice before making any decision about your property owners’ property and liability insurance as well as your financial obligations. You should always ask your insurance advisers like Alan Boswell Insurance Brokers what experience they have of dealing with residential and/or commercial rental property insurance.
Nothing contained in the article should be considered as giving individual financial advice. Please note that there may be variations for those living in or letting property located in Scotland and Northern Ireland.
For more details visit: http://www.Alanboswell.com
Alan Boswell Insurance Brokers Limited
Harbour House
126 Thorpe Road
Norwich
Norfolk
NR1 1UL
01603 218000
