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Outbuilding and Shed Insurance Cover

Outbuilding and shed insurance cover
Outbuilding and shed insurance cover

These days most properties contain buildings that are external to the main building whether it’s a wood cabin, garage, greenhouse, Breeze House or just a garden shed. Factors such as the costs involved with moving have led to trends in people deciding to utilise their existing property and the space around it by building extensions or adding buildings such as log cabins to the surrounding ground. Outbuilding and shed insurance cover will usually be as standard on home policies but it is worth checking with insurers that this is the case.

Buildings that are not of standard construction are not normally covered under standard insurance policies….
When taking out a quote for home insurance, if you ask about insurance cover for such buildings they may make an exception providing full details are declared at the time and noted in your statement of insurance. For example thatched cottages and listed buildings sometimes have out buildings that are built with the same materials as the main property and some insurers are ok with this especially if the policy is designed for such circumstances such as thatched or listed building policies.

Contents in sheds and outbuildings
Most insurance policies have a standard level of cover for content that is either out in the open or stored in sheds and other out buildings up to a fixed amount which will vary from insurer to insurer.
Accidental damage does not normally extend to contents within garages and outbuildings but this is subjective to each insurer and is worth enquiring about with your insurer or if you are requiring a quote.

Flat roofs on out buildings
Insurers usually like to know if any part of the property contains a flat roof and what percentage of the overall property this represents, this extends to outbuilding and Shed Insurance Cover for garages, extensions and other out buildings. Flat roofs should be maintained more frequently than standard roofs, usually 10-12 years and is required under many standard insurance endorsements.
However advances in roofing materials means that some specialist roofing companies now offer their own insurance backed guarantees of longer periods which is more like 20 years or more and a quick internet search will help you find them if interested.

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Burglary prevention at Christmas

The build up to Christmas can be both exciting and stressful but imagine coming home one day and finding your property broken into and all the gifts you have bought or received gone.
The festive period is a prime time for burglars with properties being stocked with new unopened items of high value that are easier to sell on in their new and boxed condition, it is also a time when more people leave their homes unattended than usual to go on Christmas parties or to visit friends and relatives.
Opportunist thieves don’t need much to feel presented with a chance to steal and the season of goodwill can also be a time where people are more relaxed and don’t take the same security measures they may take when they go on holiday.

Most insurance policies will have an automatic uplift for contents of 10% for the Christmas period (we do here at Highhouse Insurance), if this is not the case, please ensure that your contents insurance is sufficient for your requirements. If they are not, then ensure that you contact your insurance to increase the sum insured as necessary.

Burglary prevention at Christmas

We have put together is a brief guide on various measures and general advice to help prevent your property from becoming a target.

Don’t leave gifts on display
Nothing feels more like Christmas than looking at a nicely decorated tree full of presents underneath. However having gifts on show, particularly in view from a window is also attractive to thieves. If possible hide all gifts until the day of opening and be equally stringent after they have been open. If you are going out or going away don’t leave them on show.

Festive outdoor lighting
Outdoor Christmas lights can act as a deterrent like any other outdoor lighting but can pose a potential risk if they are mains operated and need to be plugged in through a window. When possible buy lights where not only the lights are suitable for outdoor use but also the transformer or plug, then connect to an outdoor mains. Alternatively there are a large range of battery or solar outdoor lights available and have come on leaps and bounds since their first generation attempts.

Don’t publicly display any packaging
Councils these days are much tighter on rubbish and recyclable waste and some don’t allow you to put rubbish out beyond what will fit in the plastic bins or bags provided so the visibility of rubbish and recyclable goods isn’t as generally noticeable these days. However just after Christmas they generally are more relaxed and bins are overflowing, be careful not to display packaging, only put extra bags or boxes out on the day of collection or night before and when possible take what you can to a recycling centre. Don’t give potential thieves an idea of what they might find in your house.

The Christmas tree looks lovely by the window
A classic place for a beautifully lit Christmas tree is by a window with the curtains or blinds open so it can be visible to passers by and while I don’t want to destroy the spirit of Christmas it is also worth pointing out that not only the tree may be visible especially in the evening when the room is fully lit and the curtains aren’t drawn. The tree will also succeed in grabbing the attention of almost anyone that passes by so be careful in what else is visible should you decide to place it by a window especially when you are out.

Take basic home security measures.
This may appear in every article to do with home security but ensuring you have minimum securities in place where possible can never be understated. A third of burglars enter a property through a window so all ground floor and accessible windows should have key operated security locks which are kept shut and locked when the property is left empty.
Two thirds of burglars enter a property through a door so it is important to do what you can to make them as secure as possible. The minimum security standard for most home insurance requirements is having 5 Lever Mortice Deadlocks but additional security measures include fitting mortise bolts to the tops and bottoms of doors, fitting chains or bars and if the door has a window or glass panels then these can be replaced with either laminated glass or a special film over the existing glass which does a similar job.

Ensure all outbuildings and sheds are locked securely and that no ladders, steps, or outdoor seating that can be easily moved is readily accessible to aid thieves

Don’t leave spare keys in obvious places such as under a doormat, nearby plant pot, loose brick or rock, under the tyre of a second car and so on. Leave with either a trusted neighbour or friend and don’t leave any keys indoors in bowls, hanging up or visible from an external viewpoint such as through a letterbox.

Motion Sensor lighting and spotlights are very good for lighting areas of your property that would have very little lighting otherwise and can act as a great deterrent to potential burglars. Most have adjustable detection ranges so you can change them to only switch on when someone comes on your boundary and not just walks past.

Be wary of the pitfalls to using social media
We posted an article a few weeks back on thieves using social media sites to target victims, by using information they have made public such as being away on holiday leaving their property vacant. Christmas is no different and people should be wary of posting information when they are visiting friends and family especially when they share their location whilst posting, its best to do this post dated after you have returned home. It is also not a good idea to go showing off all the new presents you have on social media and keep an eye on what information your children are sharing.

Should you require home insurance or any other type of property insurance today or at some point in the future and would like a free quote then please feel free to contact us by either selecting the appropriate insurance or calling us directly on 01243 606552.

Sources
Home security guide, city of London police, HSL02- produced by the Home Office Communication Directorate, January 2004

Home insurance cover and liability related to dogs

Home insurance cover and liability related to dogs
Liability related to dogs

Fine weather is here at last and I find that enjoying a long walk with my dogs is ideal at this time of year, not too hot for them nor for me. Whilst walking the other day, I was asked about home insurance cover and liability related to dogs! So as many of you may have dogs, This may be of interest.

Under the Home Insurance Contents section of most insurance policies, the chewing, fouling and damage caused by pets to contents is specifically excluded. So do be careful leaving your pets in areas where a large wagging tail could do damage!

The other aspect is what would happen if my dog caused an accident or bite someone! Well this is a very in depth subject, but the general rule is if your dog is under control (on a lead generally) and is in the custody of an insured person, the Liability to the Public section of a standard Home Contents cover will cover you for any damage or injury caused, as long as you can show that the incident was a single isolated incident and that the dog was under reasonable control at the time. Having a dog off the lead, does not in itself constitute the dog being ‘not under control’!

The general cover under this section of the policy is normally limited to between £1,000,000 and £5,000,000.

The Holiday period has started, and those that have come to join us for the summer period, a warm welcome back to you. Please also remember that those that leave their permanent homes for a period of greater than 30 days in one time should check their Home policies to ensure that they abide to the ‘Unoccupancy Clauses’ in their policies and that they tell their Insurers if they exceed the limitations of the policy. The Insurers are totally within their rights to not honour a claim for these extended periods.

To our Business Partners: It is important that you have the insurance cover in place in case you do cause damage or an accident whilst working. This is called Public Liability insurance, and can be purchased for as little as £10 a month for a £1m cover. You can see that this is a little to pay for that amount of cover and for peace of mind.

For a non biased guide to home insurance, including advice on buildings insurance, contents insurance and tips on reducing your premium read our House Insurance Guide section.

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Burglars use social media to target homes

These days social media platforms such as facebook and twitter have become ever popular and many people now see them as an extension of themselves to chat with friends, share views, sell their unwanted items, advertise events or businesses and make new friends.
This social revolution has not only changed the way we interact with one another but also how we share information about ourselves. There are plenty of positives to be gained by doing this like meeting up with long lost friends, finding out about local events and who is attending or just meeting people that have similar interests.

Burglars use social media to target homes

There are however some dangers to the use of social media and users can be left vulnerable without realising it. Social media has opened the doors for people to tell the world about themselves, who they are, what they like and what they are doing. There are many people who enjoy reading and sharing this information for honest reasons but there are also a few out there who use social media as a resource for gathering personal information with the intentions of criminal acts.
People love to write about what they are doing, where they are going and in particular when they are away on vacations. I often get face book posts from friends on holiday showing off a picture with them and their family enjoying themselves in some resort, somewhere hot and sunny whilst the rain hammers down in England.
Social media has however gained the interest from thieves and now burglars use social media to target homes. They  use the information to target people by following posts to find out where they live, when they are on holiday and how long they are away for. Many users on facebook accept friend requests from people they have never met and allow them to read their non public posts. Options in facebook, twitter and google+ allow users to share their location whenever they post something and because they can be posted in almost real time, thief’s know when and where they are at anyone point in time.
Web mapping services such as google maps can provide additional information to thieves and help provide a blue print on properties to plan ahead.

Take Action

When sharing personal information it is important to be careful on what information you share and with whom. Be careful who you allow as a friend and / or what information you post about yourself online. If you go on holiday and wish to share photos or keep an online diary of your travels it is advisable not to post this real time or even better wait till you return home before you share it. Many mobile devices now carry location services so be sure to switch them off as well and ensure that your children take the same precautions because their online activities are equally attractive to thieves.
Of course thieves aren’t just looking for opportunities when people are away on holiday but rather simply just when they are away from the property, vacations are ideal because the whole household tend to go away but with every member of a household now connecting to facebook and these accounts naturally all being connected through ‘friends’ its possible to build up an idea of the activity for that property through details and posts such as where and when they work or regular day to day activities. The more information about themselves a person posts the clearer the picture about them and those around them becomes, for example dad is a travel rep, mum works as a secretary for a local solicitors (or the other way round) and the kids are at school and then picked up afterwards by gran and then collected by mum or dad after work, Monday to Friday. Comments and posts however small and insignificant over a historical timeline and across connected accounts can be used collectively to determine personal activities of a household the same way a points card used by supermarkets collects details on peoples buying habits.
Platforms like face book have become very popular quickly and revolutionised the way we interact not just with other people but with technology itself. As social media and technology integrates and evolves with new services and opportunities to share information it is important to remain astute and be aware of the potential pitfalls because professional thieves can be savvy and don’t need much to see an opportunity.
There are of course other measures you can do outside of social media to help prevent opportunist thieves from detecting when your house is vacant, here is a brief dos and don’ts for when you are away:

• Don’t broadcast your holiday, as much as you want may want to tell the world of your much needed break the same advice applies just as on social media, the less people know the better.
• Get a house sitter or ask a trusted friend or neighbour to regularly check on the property. If they are able to share their rubbish with your bins and put them in and out on collections days. Turn lights on and off in the evenings and the telly or radio, whilst shutting the curtains. This is of course subjective to what they would be willing to do but if you offer the same service in return then the old saying ‘what are neighbours for’ gains a bit more value!
• Cancel newspapers and redirect mail if possible. If people can visibly see mail and newspapers mounting up then this is a good indication the house hasn’t been vacant for a while. If you have a trusted neighbour or friend who checks on the property while you are away then have them collect the post and move it to a different part of the property, that again isn’t on view- unopened letters and a stack of newspapers on a table is just as evident. Also it is better to cancel newspapers than to put your deliveries on hold.
• Use timers on lamps in the house that switch on and off in the evenings and that are visibly on through windows.
• If you have a drive way then keep a vehicle on there, if not then ask if a trusted neighbour would be willing to park their vehicle there.

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Insurance Matters March 2013

The cold weather is abating and at last the first signs of spring are here. This is the time for the spring cleaning to commence. But be careful how you handle things! Most Home Insurance policies will exclude damage during the cause of cleaning, so take particular care with fragile items.

You may also be considering getting a gardener or domestic help at this time of year, and most policies do cover your liabilities towards these people as ‘domestic servants’, however, this is purely towards any accident that they may have in your premises and covers your negligence only.

Be sure that those people that you employ to do the odd jobs for you have their own Public Liability cover in place. Remember that if they are trustworthy and bona fide, they should have this cover in place and be able to show you a copy of their Liability Schedule. It is normal for them to have a minimum of £1,000,000 cover to cover their accidents or mishaps! It does not cover faulty workmanship, and nor does your Home Insurance Policy. Choose who you use with care.

Those of you that let properties, also have a duty to employ only bonafide contractors to complete the works for you, as you owe your tenants a ‘Duty Of Care’, so make sure that you check the Liability cover and work on good recommendations, just in case. Remember to make sure that your Gas Certificates are up to date (every 12 months) as this will be a requirement under all Buy to Let policies.

Those of you that have short term holiday let properties should ensure that during the time that the properties are not let that they are adequately heated still. It is a requirement under the Un-Occupancy endorsement in your policy to maintain the temperature at 10 Degrees or above and we may still have a sharp cold snap !

It is important in these hard trading times to keep overheads to a minimum, but don’t feel that Insurance is one of those areas to trim down. Make sure that you are insured for the full value of the stock and traded fixtures and fittings, as should there be a claim, then the claim will be settled on ‘Average’. Average means that if you insure your stock for half the amount you should have, then you will receive from the insurers half the value of the damaged stock etc. This could mean the difference of sinking or surviving should a claim occur.

We hope that this information is of use to you, and that you are enjoying the harbingers of spring. Highhouse Insurance Services Limited will be more than willing to give Free Advice and guidance on all property and business insurances, just call us directly on 0845 230 1477.

How to find tenants

Landlord handing keys to tenant with documents
Choosing the right tenants

So you have purchased your property with intention of letting, or you may already have a property and made the decision that renting out the place would suit your circumstances. Either way when you are ready to let your property the next step is to look at how to find tenants and more important, the right ones.

How to find tenants

There are a number of different things you can do to you find the right tenants and hopefully minimise any problems you may face in the future.

Do it alone or get an agent

If you are ready to let your property then you have or should have at least thought about how involved with the actual tenanting you want to be. It is worth looking into what local letting agents offer, most agents offer different levels of service from just helping you to find a tenant to taking care of everything including property maintenance and dealing with rent arrears. Naturally there is a charge and the more involved a letting agent is the more they will cost.
Being a landlord comes with responsibility including compliance with legislation. Its not impossible to go it alone and there is nothing with regards to letting a property that a landlord cant do solely. There is enough resource material available in handbook form and online to outline everything involved with being a landlord but this requires studying research and keeping up to date with. You also have to ask yourself how involved physically do you want to be? Are you prepared to be woken up in the night to deal with emergencies?
Find the happy medium for your circumstances, remembering that a letting agent can take on a lot of the responsibility but at the same time they can greatly affect your bottom line.

Checking References

References are often overlooked by landlords but are a very good first base filter for finding the right tenants. These days there are quite strict referencing procedures in place to protect landlords, which can arguably prove to be a bit of a headache for tenants. Following up references by contacting the tenants employer, previous landlord or using a specialist referencing company will help you paint a better picture of the kind of tenants you could have. Be wary of some references, many landlord forums are filled with comments by landlords claiming that previous landlords have given a good reference in order to get rid of tenants and although we have little evidence of this the fact that this comes up quite a lot in landlord forums certainly raises an eyebrow.

Find the right tenants by credit checking

Doing a credit check is more for peace of mind and down to the individual landlord and the nature of the tenancy. For example you may feel more compelled to do a credit check if renting out the full property but may not if the house is in multiple occupancy.
Naturally the more transparent a potential tenant is willing to be the more at ease a landlord will feel. It is important to know a tenants financial situation, what is their main source of income? How secure is their job and how reliable do you feel they will be at paying rent?
Credit checks provide a good financial history of the tenant based on records, it does not prove that a tenant is always going to be able to pay even if they have an excellent rating and a bad history does not mean they can’t pay. Some people have just gone through a bad period in their life and can still be made to pay for it many years on. Trust your gut instinct and how you feel about the tenant, they may pass credit checks and references with flying colours but what insight can you gain from a face to face meeting and would you be happy to deal with them.

Documentation

One of the best ways of protecting yourself and being able to deal with any problems is to document certain parts of the let. A tenancy agreement may be written or can be oral and having a hard print version provides more protection for both you and the tenant. It can give you and the tenant subject to the agreement more than your statutory rights but cannot give you less than your statutory rights.
When obtaining a tenancy agreement we advise you use a reputable source and avoid the free tenancy templates available online. Agreements drawn up by Solicitors or tenancy agreements endorsed by the National landlords Association (NLA) will offer a more trusted resource.
It is worth while, especially if the property is furnished, to create an inventory that lists all the furnishings, fixtures and fittings accompanied by a description of condition including any marks and where possible supported by dated pictures.
The tenancy deposit protection (TDP) scheme that came into force in 2007 is a government backed scheme setup to protect tenants. It ensures tenants get their deposit back if they meet the terms of the tenancy agreement, pay the rent and bills and don’t damage the property.
Having an accurate inventory is therefore very important as it could be key in proving that items have been damaged or are missing or better still prevent such cases from arising in the first place.

Letting to Students

A guide to landlords looking at letting to students
Letting to Students

Letting to students

Letting to students is slightly different from a legal perspective than renting to other types of tenants such as families or professional working couples. If the house has 3 or more tenants forming more than 1 household (a household represents 1 or more members of the same family who live together) and these tenants share bathroom and kitchen facilities then the house is classed as a house of multiple occupancy or HMO for short.

Accommodation for students

Each year the influx of students to a region where there is a university provides a real boost to the local economy and generally speaking will keep businesses that earn their trade through students in good stead for the long term supplying steady demand, subject to competition of course. The demand for houses near a University or academic institute is usually high with existing student landlords, keen parents wanting to buy their children a student house and other potential landlords wanting to give student letting a go means that properties are don’t stay on the market for long.

The closer to an academic institute the property is the more expensive the property tends to be on a like for like basis. Of course properties near student bars and clubs will be popular as well and worth looking into.

Generally speaking the student letting market has been stronger these last few years compared to other areas of the residential investment market especially in cities like London.

The demand from students for accommodation isn’t necessarily greater than the supply of accommodation available everywhere though and Leeds Unipol believed that in 2012 there would be a surplus of approximately 3,800 bed spaces leaving many landlords with unfilled rooms or worse untenanted properties.

Universities themselves compete strongly in the student accommodation market and are constantly building new purpose built student blocks. Each time a block or group of blocks is completed their share in the market can increase by several hundred students and put a squeeze on the private rental sector for student accommodation.

Rolle College in Exmouth, Devon is a good example of where a University can remove a market in one swoop. The college use to be a teacher training college and was part of Plymouth University. In 2009 the University relocated the campus with some 3000 students and 400 staff to its main campus which is over 40 miles away and the consequences had both economic and social implications in Exmouth. Many of the student accommodation properties have since been rented out to other individuals or rented out fully but the student letting market ceased.

When looking for properties with the intention of letting to students it is worth spending a bit of time researching the current market for a target area and any future developments. The University website will usually have a section on accommodation and future developments which might be able to provide some invaluable information and local estate agents should be able to provide good advice but getting the advice from several estate agents will allow you to cross reference and paint a clearer picture. We should also point out that you will require HMO Landlord Insurance, a unique insurance specifically underwritten for student property lets and we recommend you also take into account insurance factors such as flood risk, crime rates or any history of subsidence when choosing a buy to let.

What facilities should be provided when letting to students

It’s difficult to give advice on what facilities should be provided that goes into enough depth covering what students require and the regulations and standards that need to be met by law. The best advice is to go online and look up the university or academic institute website and read through the pages on accommodation.

Many universities work with their local council and student guilds to offer accreditation schemes. These schemes aim to recognise a set of standards outlining key Landlord responsibilities offering students protection and Landlords clear guidance.
The relevant local council website should provide information on what they expect from landlords and legal requirements and be a good resource for contact numbers and further avenues.

It is also important to not just set out a student let that complies with laws and regulations but it should be designed with students in mind. The more attractive and accommodating to students the property is the easier it will be to let.

Students normally pack light so the property should be furnished, not extravagant but suitable for students to quickly settle in. Rooms should be equipped with a bed, wardrobe and desk. If the rooms are on several floors or the property has quite a few rooms then more than one bathroom should probably be provided if possible. Kitchen appliances are likely to get heavy use so cutting corners to save money using cheaper appliances could end up costing more in the long run. Are the fridges/ freezers big enough for the number of student tenants in the property?

What else are you going to offer student? are all bills inclusive of rent? Are you going to offer a wifi connection? (really is a must these days) Do you want to provide direct contact details?

For all the information available on HMO’s, regulations and practices there is an equal amount of resource provided to students offering advice on what to look for when searching for a student accommodation (NUS and university websites provide such information) and it is worth cross referencing to so that you can meet all regulations and legal regulations as well get a good idea of what students are looking for.

Letting a Property

Weighing up whether renting out a property offers a worthwhile return in investment
Is letting a property a worthwhile investment?

Letting a property can be a great investment but like all investments a fair bit of groundwork should be undertaken first before choosing a property. Of course this may not always be possible if you already own the property but this guide is for those who are actively seeking to buy with intentions of letting.
The saying fail to plan, plan to fail, although not strictly true for renting property given that many potential landlords have successfully purchased a property without doing prior research or even looking at the property first it is worth remembering that buying a property to let is an investment and a large investment at that, where a bit of groundwork can really help you avoid the pitfalls and maximise the potential return.

Is investing in property worth it?

Before purchasing a property it is worth considering alternative forms of investment and ultimately the return on investment you are likely to receive for any investment period. Many people look at buying properties when rates are low and the stock market is volatile but when you buy a property you are effectively tying up capital and the property could drop in value in the future. If there is another interested party i.e. a bank or building society their interest rates will change at some point and as others have found out in the past high mortgage rates on large loans can eventually outweigh the benefits of making the investment in the first place.
Alternative savings accounts, although offer very little return during periods of low rates at least they do still offer a return and there are many tax free savings options available on the market today which involve next to no effort compared to that of becoming a landlord.

Where are you willing to buy a property?

When deciding on whether you want to buy a property to rent there are a lot of variables that come into play like a jigsaw and by answering certain questions you will have a clearer picture of what is right for you.
How far are you willing to travel? If you plan to be a hands on landlord and deal directly with the tenants and any problems that may arise then how far do you want to be from the property. Once you know the demographic area you can then focus on the local property market for that region. Bringing in a letting agency to manage the property will allow you to widen your target area and they will be able to deal with matching up suitable tenants, handle any problems such as the boiler breaking down and some will be able to manage all aspects of letting a property. However as with all expertise and services they will charge and this will need to be accounted for when costing the investment.
Depending on an agencies involvement they could just be responsible for finding suitable tenants and collecting the rent but you still carry the responsibility for maintenance or resolving problems such as sourcing a plumber or electrician.
Property value is often affected by desirability at that point in time. Cheaper properties are normally located in less desirable areas but that’s not to say that it will stay less desirable. The villages where once younger generations could not wait to leave and head for the city are now seen as highly desirable and preferred by the same younger generation as an ideal place to raise a family away from pollution, traffic and other factors associated with living in a city.
If possible try to gain knowledge of the area and of any future developments, remember that some developments can have a positive impact on an area such as a new school or bypass and some can have a negative impact such as becoming a flood risk area. There are also factors that can affect the value of an individual property such as new buildings or homes being built in surrounding land which as a consequence affect the view or appeal or a property.
It is worth visiting several different estate agents as they should be able to tell you which areas are the most desirable and some have a database of tenants waiting to rent. You may be able to target specific areas or even streets that look to offer real value as a rental property, maximising your potential return.

The kind of tenants you want could impact the kind of property you buy

If your thinking of becoming a landlord then you may have already thought about the kind of tenants you would like. Obviously the location and size of the property are things that factor in to the attractiveness for potential tenants. What is access to local schools like? which are the best schools in the area? How near are public transport facilities? How far are you from main roads and motorways? What are the Crime rates like? If your targeting professional working couples or families think about their needs and which areas would suit them the most, if you are targeting students, how far are you from their college or university and which areas have public transport routes that run directly or near to their academic institute.
Different types of tenants may also have different requirements besides just location and local facilities. For example students may require a fully furnished property that they can move straight into and be setup ready to pursue their academic studies the following day bringing with them just a suitcase of personal possessions to make their temporary accommodation a home from home. Families or couples may have a lot of their own furniture and require an unfurnished property. They may also be looking for a long term rental agreement.

Other factors to consider

There are lots of things to factor in to determine whether an investment is likely to be profitable, some can be determined early on such as fixed rate mortgage repayments, landlord insurance and to some extent the cost of renovating a property to the standard you require for letting. There are however other factors to consider such as what if the property remains empty for a month or two, do you have a financial buffer to cover these circumstances.
Rental income is taxable and it is advisable to see a tax advisor to see how this affects your circumstances especially if you have other sources of income. Some costs can be put forward as expenses to offset against this including the tax advisors fees.
There may be times especially during a recession where tenants struggle to pay the rent, how understanding can you afford to be? Many insurance companies now offer rent guarantee insurance to protect you against tenants who fail to pay.
You may be lucky enough to know other people who rent out properties, what are their experiences both good and bad, what advice can they give you, the more people you know and can get advise from the better prepared you will be and determine whether being a landlord is right for you or not.

What does landlord Insurance Cover

Keys next to signature signing
A guide for landlords

What is Landlord Insurance Cover

When letting a property there are slightly different risks an insurer needs to take into account and therefore, have produced a different insurance for rented property known commonly as Buy to Let Landlord Insurance. So what does landlord insurance cover? well in practice a buy to let landlord insurance policy is very similar to a standard household policy, the buildings are still covered against standard perils, you can still get contents insurance to cover furnishings as well as accidental damage and many of the wordings in the policy booklets will be the same.
There is however a few differences and these will be highlighted throughout this guide. The main difference is that the property is not owner occupied and is tenanted through which you are earning an income. Standard house hold properties are not written and rated to cater for this (letting a room out is different and normally catered for in a standard household policy). It should also include Landlords Legal Liability insurance to provide protection for Landlords as Property Owners for injury or damage to others including tenants as residents in the property.

What does landlord insurance cover

Single policies for property portfolios
An advantage to landlords who own more than one buy to let property is that many insurers now offer multi-property policies, which can combine their portfolio or properties onto just one insurance schedule (each property will usually have its own buildings sum insured and contents sum insured) and will have just one renewal date. Discounts are usually available as its not only keeps things simple for the landlord but also the insurer as there is less administration and therefore cost involved.

Landlords insurance cover for Contents
What is considered contents is usually slightly different than for a standard household policy. As the policy will only cover the contents that the Landlord has provided for the use of the tenant. For example carpets, White Kitchen goods and communal contents in hallways and vestibules. Contents are not normally covered in outbuildings and garages unless specifically requested. It is also worth remembering that landlords contents will only cover items and furnishings owned by the landlord and not any contents owned by the tenants, who will have to arrange their own contents insurance.

Loss of Rent Cover
A standard cover found in rented property insurance is ‘Loss of Rent’. This is very important and given that it is standard in most landlords policies these days you should not take out a policy that does not include this. Loss of rent covers landlords against expenses they incur should their property let become uninhabitable leading to finding and paying for alternative accommodation as well as any actual loss of rent itself during the period that the property is uninhabitable following the occurrence of an insured peril. Loss of rent is usually set as a percentage of the sum insured.

Rent Guarantee
Rent Guarantee Insurance will cover you against your tenant defaulting or failing to pay the rent. It isn’t normally standard on landlords insurance but may be available as a bolt on or as a separate insurance policy.

Should you require  let property insurance  then please consider Highhouse Insurance for a quote. We can provide you with a Let insurance policy covering most tenancy arrangements including HMO for all the usual perils that you and your lender will require. Our own Let policy is underwritten at Lloyds of London and we will be pleased to provide you with a free quotation.

Home Insurance

A house requiring a home insurance quote
Get a home insurance quote from Highhouse

Key Home Insurance Benefits

  • Get a Home Insurance quote with instant no claims discount.
  • Only pay for level of cover needed.
  • Personal possessions, accidental damage and family legal protection optional.
  • Buildings and Contents Values Indexed linked at no extra cost for the first year.
  • Includes public liability cover upto £5,000,000 as standard.
  • Speak directly to UK staff for all sales, services and claim lines – No automated phone service.

Here at Highhouse we offer comprehensive Home Insurance cover that can be tailored to meet your specific needs and can give you a Home Insurance quote (UK) based solely on the information you provide us on a bespoke basis. We can give you an Insurance quotation that is competitive with other online insurers and we aim to keep our rates consistent year-on-year. Home Insurance can be extended to include Accidental Damage and family legal protection. We are also able to extend beyond our standard level of cover for personal possessions and valuables for added peace of mind. 

Below is a brief summary of cover available for standard House Insurance:

Buildings cover also includes:-

  • Loss of rent due to you and temporary accommodation costs up to 20% of the sum insured for buildings
  • Increased domestic metered water charges up to £750 in all following an escape of water
  • Up to £2,500 to find the source of leaks that are damaging the buildings

Contents cover available also includes:-

  • Property in the open up to £2,500
  • Temporary removal to certain other premises in the United Kingdom for up to 20% of the sum insured
  • Accidental damage to televisions, audio and video equipment including radios, DVD players, video recorders, home computers and satellite decoders
  • Rent you have to pay and temporary accommodation costs up to 10% of the sum insured following a claim
  • Replacement of locks following theft or loss of keys up to £250
  • Increased domestic metered water charges up to £750 in all following an Escape of Water
  • Your legal liability for accidents to domestic staff up to £5,000,000
  • Domestic freezer contents up to £250
  • Office equipment in the home up to a maximum of £5,000
  • Up to £2,500 of cover for your family whilst at university/college