18% of UK's private landlords do not have required insurance
Published by Max Salsbury for 24dash.com in Housing and also in Finance
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Almost one in five of the UK's private landlords do not have the required insurance on their properties, new research has revealed.
The study found that most standard home insurance policies do not cover rental properties.
The research - by Direct Line for Business (DL4B) - also found that landlords believe their properties cost them £8,256 a year to run.
The average respondent’s portfolio comprised 5.3 properties and drew an annual income of £94,344.
Repairs were the largest reported cost, with materials and labour costs averaging £2,848. Landlord insurance was the second highest, accounting for £1,329, or 1.4% of the gross annual rental income.
Jazz Gakhal, head of Direct Line for Business, said: “It’s vital that landlords get the right cover for their properties. You are unlikely to be covered in a standard home insurance policy, and there are many valuable extras available, including rental income protection if your property is uninhabitable due to an insured event such as a fire or a flood. A good landlord’s policy will also include public liability insurance also known as property owner’s liability insurance as standard as you could be held liable for injuries on your property or damage to neighbouring property.
“Equally, if you are a tenant, speak to your landlord to make sure this is in order. It might not seem like it’s your responsibility but if there’s an accident that means you need to leave the property, you’ll be dependent on the landlord having suitable cover to make sure you get alternative accommodation.”