10-06-2010
When it comes to landlord’s buildings insurance it really can pay to shop around. Many landlords believe that because they have been with their insurance broker for many years that they are automatically going to source them the best deal on the market. Unfortunately this is not always the case. Many of our clients have been pleasantly surprised when they have obtained a buildings insurance quote from TPCM, not just due to the competitive premiums but also the level of cover our policy includes.
Protecting your investment is important, so the policy you buy really should cover you not only for the rebuild costs of your property but for other threats such as intentional or needless damage. TPCM have negotiated a policy with one of the market leaders in insurance to include malicious and accidental damage in their policy at no extra cost along with many other benefits.
We have a low flat rate across the country (subject to the successful completion of a short form and a post code check) and have managed to save some of our clients in excess of 40% on their premiums, and in some cases provided them with more comprehensive cover.
Obtain a free no obligation quote on our website www.tpcm-insurance.co.uk or call us on 08442 250 200.
27-07-2010
Since 2003, increasing numbers of buy-to-let properties up and down the country have been targeted by gangs of cannabis cultivators looking to house their criminal activities. The subsequent damage to landlords, in both financial and legal terms, can be catastrophic. This is particularly the case for uninsured landlords who may find themselves having to foot the bill for extensive repairs to their properties. Alarmingly according to recent reports, 94% of cannabis farms (also known as factories or grows) have been located in domestic premises.
Landlords who have been the victims of this type of criminal activity have reported damage of the following nature to their properties.
Ceilings and walls knocked through and floorboards ripped out.
Severe water damage.
Fire and explosion.
Furniture destroyed or thrown away.
Wiring ripped out.
Electricity meters bypassed.
Although all properties are at risk, cannabis gangs are more likely to set up 'home' in a house rather than a flat as they require space to cultivate their plants. Additionally, these gangs tend to favour secluded properties in areas where this little through traffic, such as cul-de-sacs.
If you do become a victim of these criminal gangs and your property suffers substantial damage as a result you need to make sure that malicious damage is covered in your policy. Many insurance companies charge extra to cover malicious damage however at TPCM we feel it is imperative that our landlords have this cover as standard and at no extra cost.
A vacant rental property is not something a landlord would wish for and in the current economic climate an unoccupied property can easily become a target for criminal activity. If your buy-to-let property is, or is about to become, vacant then there are a number of things you need to be aware of so that you can not only minimise the risk to your investment but also save yourself money in the short and long-term.
If your property is, or is about to become, vacant then you must inform your landlord insurance provider. Check that you have adequate buildings cover for the period when the property will be unoccupied and that you comply with any insurance requirements. Usually it becomes restricted after a stated period of time, anywhere between 30 and 60 days in most cases and certain incidents will not be covered such as escape of water and thefts, so it is imperative that you check your policy conditions and ensure measures are taken such as turning the water off, safeguarding the property and making regular checks.
Other practical steps you can take if your property is vacant are listed below.
· Redirect post.
· Remove hazards which may harm someone entering the property.
· Give your details to your neighbours.
Vacant properties present both a financial and security risk to landlords. You can minimise the impact of the risks associated with an unoccupied property by taking a proactive approach to security, complying with legal and insurance requirements and applying for unoccupied property council tax exemptions.
If your property is unoccupied below are some examples of insurance requirements, check with your insurance provider as to what their requirements are as these can vary from policy to policy :
· Make sure fire or intruder alarms are on.
· Drain the water and heating systems.
· Install security measures.
· Carry out regular inspection visits.
· Remove combustible material such as junk mail on a regular basis.
· In the winter protect your water pipes from the cold
If you would like more information about covering a vacant property or would like to obtain a free no obligation quote call us on 01273 827090.
First and foremost landlords should be concerned about the substantial risks now posed by third party liabilities. In the litigious society in which we live, anyone operating a business, and a landlord is certainly doing that, can easily find themselves on the wrong side of a lawsuit which can seriously damage your wealth.
You only need to watch day-time TV for a brief spell to see how many law firms are touting for the business of anyone who has the slightest inkling of an accident claim.
Property owners' liability insurance enables you to meet any costs and damages awarded to a member of the public if they suffer an injury following an accident on, or linked to, your premises. This will include costs of hospital treatment and ambulance costs claimed by the NHS, if someone is awarded personal injury damages and the incident occurred either on or after 29 January 2007.
It is vital that you are covered in this way against death or injury to individuals on or near your property, for example: tenants, visitors and guests, meter readers, postmen etc. Local authorities and Universities will normally specify a minimum amount of cover needed when you are letting to house housing benefit tenants or students.
TPCM has £5 million Property Owners Liability included in our policy at no extra cost while some other policies only have £2 million.
If you would like to obtain a free no obligation quote call us on 01273 827090.
09-08-2010
When taking out landlords insurance for your buy to let property, your insurer will want to know the rebuild costs of the property to be insured. Here we explain what rebuild costs are, the reasons rebuild costs are required, the difference between the rebuild costs and the market value of your property, and how rebuild costs are calculated.
Insurers need to know how much a building should be insured for in case it is destroyed and needs to be rebuilt. As the property owner, the onus is on you, the landlord, to get the sum right. Help is available, with online links included here to help you find a chartered surveyor or to estimate your rental property's rebuild costs using an online calculator.
The rebuild cost of your rental property is the amount it would cost to rebuild if it were destroyed. In addition to the costs of materials and labour, professionals' fees, such as surveyors, should also be included. The rebuild costs directly affect how much your rental property should be insured for and, in turn, the amount of insurance premium you need to pay. If the rebuild cost is calculated incorrectly then you as the landlord could pay the price.
If the rebuild cost is calculated too low then you may be underinsured. In reality, this means that if your rental property needs to be rebuilt then you will have to make up the difference between the amount the insurance company pays out and the total rebuild cost.
If the rebuild cost is calculated too high, then you could be paying too much for your insurance.
It is essential that you review your property's rebuild costs on a regular basis to make sure you have the right level of insurance cover. This is particularly the case if you make any changes to the property (such as building an extension) which could increase the rebuild costs and the level of cover you need.
Some insurers use index linking* (definition below) to review the rebuild costs and your insurance premiums could then be altered in line with this. Check with your insurer whether this is the case with your policy.
There are two ways to calculate rebuild costs:
Although an online calculator can provide you with a rebuild costs estimate based on the information you provide, the most reliable way in which to calculate the rebuild costs of your property is to use a professional chartered surveyor.
To find a professional chartered surveyor visit: www.ricsfirms.com
To calculate your estimated rebuild costs online visit: http://calculator.bcis.co.uk
By taking the time now to check the true rebuild costs of your rental property and by reviewing the costs on a regular basis, you can make sure you've got the right level of cover. It will also make it quicker and easier to get a quote for landlords insurance.
*Index linking protects you against underinsurance. At each annual renewal, your insurer will review and increase the building sum insured in accordance with an index linked to inflation. This ensures that you have sufficient insurance to cover the increasing rebuild costs. NB Although index linking will keep the insured sums up to date, the initial rebuild costs must be correct from the outset if you want to be certain that you have enough insurance cover.
If you would like to obtain a free no obligation quote you can either visit our website at www.tpcm-insurance.co.uk or call us on 01273 827090.