Property insurance is a must for every landlord because there is always a chance you may need it. The problem today is that there is such a wide range of products on offer and generally landlords are led by price.
The paperwork and terms are so extensive and complicated that most generally accept what they consider to be standard terms at a sensible price.
With the growth of block management companies looking to increase their revenue many of them are now offering an all-inclusive package for block protection. However, this is not the same terms as proper landlord protection.
We recently had a case where the tenants through no fault of their own had to be accommodated by the landlord whilst works were carried out of a serious nature on their property, regrettably, the block management insurance cover only offered loss of rents which left the landlord thousands of pounds of losses.
The landlord thought the insurance cover held by the block management was the same as he had on his other properties.
This was an expensive assumption and extremely costly to the landlord. We believe that landlords need to fully understand their responsibilities and ensure they have adequate insurance cover to cover all perils.