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Rehousing Tenants after a Major Event

It can sometimes be forgotten that when landlords let their property, they are entering into a contract with the tenants to provide living (or business) accommodation for a fixed period, during which rent will be paid to them.

Of course, nobody can foresee the future, so a fire or other major damage to the property could take place at any time, making it impossible for the landlord to fulfil his or her legal obligations to provide the accommodation.

What is the solution?

Fortunately, Landlord Insurance can be arranged that covers the cost of temporarily rehousing tenants while the insurance claim is sorted out and the property repaired or rebuilt.

This will normally be for up to 10% of the insured value of the property, so the maximum cover available to rehouse a tenant of a property insured for £150,000, would be £15,000, or up to £1,250 a month.

If the tenant is lost, Landlords’ Insurance can still provide a benefit for you, in the form of recompense for loss of rent for up to 12 months. In this case cover will usually be for up to 20% of the buildings sum insured.

Not just while the property is repaired …

For some properties, repair or rebuilding may take longer than usual. In other cases, the tenancy might run out before the work required making the property habitable again (when the loss of rent cover ends) can be completed. Should this happen, you would be left without a tenant or rent protection.

To protect against this possibility, you can arrange loss of rent insurance on an alternative basis that pays you the rent right up until you actually have another tenant in place. This is particularly important for commercial property, when finding new tenants can be far more difficult than in the case of residential lettings. Such cover is more expensive, but provides greater protection.

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 what experience they have of dealing with residential and/or commercial rental property insurance.

For more details Visit: http://www.Alanboswell.com

Alan Boswell Insurance Brokers Limited

Harbour House

126 Thorpe Road

Norwich

NR1 1UL

UK

01603 218000

info@alanboswell.com