Insuring your property is all about protecting an investment. After all, you are in business to make money, so ensuring that you are not exposed to the risk of unnecessary financial loss makes sense. But it can sometimes be tempting to cut a few corners in order to save money.

In the long term, this can be an error – saving a few pounds now could cost you more in the longer term, if you do not have adequate insurance.

How much landlords’ insurance cover do you need?

Most of us today insure our own homes on an “all risks” basis. This means that we are protected not just in the event of fire, earthquake, storm, burst pipes and the usual range of ‘perils’ but also should our buildings or their contents suffer accidental damage that does not fit precisely into the more traditional definitions.

Having wider cover makes considerable sense, because Landlords Insurance written on an ‘all risks’ basis not only removes some possible causes for argument with an insurance company about what was the actual cause of damage, but also includes classes of damage that were certainly never intended to be insured under the older policies.

For example, while insurance policies on buildings have, for many years, covered accidental breakage of such items as fixed sanitary installations and windows, dropping a heavy vase on a work surface in the kitchen, badly damaging the work-top and smashing the vase itself, would certainly not have been covered. Under an ‘all risks’ buildings and contents policy wording, however, the cost of replacing the vase could be covered, as well as that of repairing the work-top.  A small excess will normally apply, but the cost of replacing a damaged item could be much higher.

Is this worthwhile for rented property?

The question remains whether this approach is appropriate – or necessary – for property that you rent out. After all, you have no control over how tenants will treat your property and therefore may not install the most expensive items in the building.

Conversely, your property represents an investment for you and the condition that it is in when you come to re-let it will influence the level of rent that you can expect. So if you can ensure that any damage to your property is reported to you immediately by your tenants and then your Landlords Insurance Company informed so that they can pay for repair or replacement, not only will your investment be better protected, but your tenants will enjoy a better environment.

All risks insurance offers you and your tenants peace of mind and need not be much more expensive than more traditional cover.

Getting the right advice

It is important to seek independent professional advice before making any decision about your property owners’ insurance requirements 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

Harbour House

126 Thorpe Road

Norwich

NR11UL

UK

01603218000

info@alanboswell.com