Sheffield broker urges landlords to check their insurance policy
18th October 2013
Sheffield broker urges landlords to check their insurance policy as one in four have the wrong or no insurance cover according to latest research Sheffield broker IFM Insurance is reminding all landlords in South Yorkshire to check their insurance policy to ensure their property is protected and would respond in the event of a claim.
This follows research by AXA Business Insurance, which revealed that a quarter of UK landlords had bought a regular household insurance instead of a commercial policy. Worryingly landlords with a household policy are exposed to having any insurance claim turned down. The research found that many newer landlords are "accidental landlords" This is where someone who did not originally intend to rent their property has now become a landlord. According to the research of the 425 residential landlords who had bought the wrong insurance, one in five had previously been living at the address themselves and simply renewed the existing home insurance cover. When they moved out they had incorrectly assumed their property was covered. The research also found that 43% were found to be unaware of the existence of landlord cover. IFM is also reminding landlords who took out policies some time ago to check their cover is still valid and in line with current market conditions. If it is not, this could place them at risk of incurring huge costs in the event of a rebuild if they are underinsured. Sadly there are far too many cases where an insurance company has not paid for the full amount in respect rebuilding costs including demolition and site clearance, together with the related professional fees in the rebuilding process. Mark Barlow, Managing Director of IFM Insurance said, "There is a growing number of newer landlords who are simply unaware of the need for proper landlord insurance to protect their assets. So it's vital for all landlords to check their current insurance wording to ensure they have the correct insurance in place. At the same time we would urge landlords to seek an up to date valuation to avoid being disappointed in the event of a claim. Your local broker can ensure you take the right actions in a cost effective and efficient manner.