Landlords

• Q: Do we need a credit reference check if we do not require legal expenses and rent guarantee?

  A: No, we only require this for the legal expenses and rent guarantee, however we would recommend that you vet all your tenants, as a matter of best practice.
  

• Q: If I let my property furnished can I obtain contents cover?

  A: Yes, but accidental damage cover would not be included under the contents section.
  

• Q: Will my cover continue if the tenants move out?

  A: Our policy will have full cover for a period of 90 days, subject to you taking certain precautions. Please refer to the summary of cover or call us for more information.
  

• Q: What is the building sum insured?

  A: This should be the actual rebuilding cost of your property rather than the resale or market value as the two are rarely the same. If you are unsure of how to calculate the rebuilding cost you can find further information by visiting www.bcis.co.uk, however for a more accurate valuation we recommend that you seek professional advice from a qualified surveyor. In addition to the structure itself, your rebuilding costs should include landlord's fixtures and fittings, fixed glass, sanitary ware, walls, gates, fences, underground services, domestic heating fuel tanks, driveways, hard standings, landscaping, garages and outbuildings belonging to you or for which you are responsible. An allowance should also be made for architects & surveyors fees.
  

• Q: How would I know the rebuilding cost of my property?

  A: If you have purchased the property with a mortgage your lender will usually have a surveyor carry out a valuation, and this should indicate a rebuilding sum insured. If you do not have a mortgage valuation you can seek guidance from the Royal Institution of Chartered Surveyors by visiting www.bcis.co.uk, however the only way to obtain an accurate rebuilding valuation is to enlist the services of a qualified surveyor. This may cost a little more now but could save you money if you overestimate your sum insured or save you a considerable sum if you under insure.
  

• Q: What happens if I insure my property for a lower sum insured than it would cost to rebuild?

  A: If you are under insured then your insurers are only liable to pay a proportion of your claim. For example if your sum insured only covers 50% of your rebuilding cost, then your insurers are only liable for paying 50% of the amount that you claim. This applies to your Contents and Loss of Rent as well as your Buildings cover.
  

• Q: Do I insure my property from exchange or completion?

  A: Insurance is usually offered from exchange, but you should be guided by your solicitor on the exact date to start your policy.
  

• Q: Is the building sum insured the same as the market value of the property?

  A: No, you already own the land so the rebuilding figure is the cost of rebuilding your property if it was completely destroyed and should also include debris removal and architect and surveyors costs.
  

• Q: I am insuring the buildings, does this include fixtures and fittings?

  A: Landlord fixtures and fittings, including communal television and radio receiving aerials, satellite dishes and communication equipment, fixed glass, fixed sanitary ware and other related fittings in or pertaining to the buildings, are included as part of the building insurance cover. Just make sure this is included within your sum insured.
  

• Q: Why do I need separate insurance cover for fixtures and fittings?

  A: As a leaseholder, the freeholder's insurance may not extend to cover the fixtures and fittings within your flat or if it does, the replacement may not be on a like for like basis so it is worth checking the terms of your lease. This can be included on your policy where required.
  

• Q: I own a flat in a block and the Freeholder covers the building, do I need any additional cover?

  A: As the owner of a leasehold property you are not usually required to insure the buildings however you are still legally liable for the welfare of your tenant, so should the tenant suffer an injury within your flat you could find yourself on the receiving end of a claim. We recommend that every landlord buy cover for Property Owners Liability at the very least as this will protect you personally should a tenant claim against you. Whilst you do not need any other cover you should also consider insuring your contents, loss of rental income and any improvements that you have carried out at the property such as fitted kitchens, bathrooms, double glazing etc. These items may not be covered by your freeholder, or if they are the replacement may not be on a like for like basis so it is worth checking the terms of your lease. We can cover these items under the fixtures and fittings section of our policy.
  

• Q: What is an interested party?

  A: An interested party is any other person or organisation with a financial interest in the property, such as a mortgage provider.
  

• Q: What is a HMO?

  A: The Housing Act 2004 defines an HMO as one of the following (part 7 section 254): A building with one or more units of accommodation which are not self-contained flats, occupied by people who are not in one household who pay rent, occupy the property as their main or only residence, are the only people to use that accommodation and share a kitchen, bathroom or toilet. If the building contains a mixture of self-contained flats and non-self-contained accommodation the building will still be considered an HMO owing to the presence of non-self-contained accommodation where people are sharing facilities. A converted building with at least one unit of accommodation which is not self-contained, occupied by people from more than one household who pay rent and occupy it as their main or only residence. As with the first definition, such a building may have self-contained flats in it as well but the presence of non-self-contained accommodation will mean that the building is an HMO. (Unlike the first definition, the occupants of the non-self-contained accommodation do not have to be sharing kitchen and bathroom facilities for the building to be an HMO.) A self-contained flat may also be an HMO if it is occupied by people who are more than two households who pay rent, occupy the flat as their main or only residence, are the only people to use that accommodation and share a kitchen, bathroom or toilet. A building converted into self-contained flats, less than two-thirds of which are owner-occupied, will be an HMO if the building work did not comply with building regulations.
  

• Q: What is meant by the term "used for commercial purposes"?

  A: "Commercial purposes" is defined as any type of business being operated from the insured property. As our Landlords Insurance policy is designed to cover premises used solely for residential purposes it is not suitable if your tenant or their guests run any type of business from home. If your tenant operates a business from the insured premises a commercial property owner's policy would better suit your needs. For further information on this type of policy please call us to discuss your requirements.