NimbleFins, a UK-based financial research and comparison website, has released a list of six common ways landlords unknowingly invalidate their landlord insurance policies. According to CEO and co-founder Erin Yurday, the goal of the list is to ensure landlords can make informed decisions when buying cover and ensure they remain properly insured.
“Any landlord considers the bottom line when making property purchases, and insurance is no different. We’ve compiled this list to make sure that landlords can get the best possible savings without compromising their insurance coverage.”
Erin Yurday, CEO, co-founder and editor of NimbleFins
1. Vacant Premises
Many landlords are unaware that if their property is left vacant for an extended period, their policy coverage may be reduced or voided entirely. For example, escape-of-water claims are usually excluded for vacant properties as significant damage can be caused when there is nobody around to notice a leaking or burst pipe. Landlords should notify their insurer of the start date, reason, and expected duration of any vacancy to ensure their policy remains valid.
2. Construction Work
Many landlords assume that if builders are present, their property is not considered vacant, and therefore covered. However, this is not the case. For example, there is added risk of damage or theft if several tradesmen have keys to a property and leave expensive construction equipment unsupervised in a building overnight. Insurers view properties undergoing construction as high-risk and may exclude claims unless prior notice is given.
3. Change in Use or Incorrect Purpose Listed
If the usage of a rented commercial property changes, or if there is a difference between the policy’s stated property use or type vs. what the property is actually being used for, a landlord insurance policy may be invalidated at the point of the claim. This is because the risk profile can change with a change in use. Landlords should notify their insurer of any changes in usage to ensure their policy remains valid.
4. Incorrectly Estimating Rebuild or Contents Values
Landlord insurance often has a clause called an ‘average’ clause or an underinsurance condition. Falling foul of this clause can significantly impact the amount of a claim that is paid. Specifically, under-estimating a property’s rebuild or contents value can result in an insurer underpaying a claim by the same percentage that the estimate was under. Landlords should ensure that their rebuild or contents values are accurately estimated to avoid any issues.
5. Split Use
If a rented premises include both commercial and residential components then this must be disclosed to the insurer. Some landlord insurance policies may not cover split-use properties, so if a building is used for multiple functions then an insurer may be within their rights to cancel or void cover.
6. Non-disclosure of Claims
If a landlord has made a previous claim on their insurance policy, they are required to disclose this information to their new insurer. Failure to disclose previous claims can lead to a policy being voided.
7. Non-disclosure of Risk
Landlords should inform their insurer of any known risks that may affect their property. Failure to disclose known risks can lead to a policy being voided.
Landlords looking for the best landlord insurance coverage that is fit for purpose should be aware of these common ways to unknowingly invalidate their insurance policies and take the necessary precautions to ensure their coverage remains valid.
Company Name: NimbleFins
Contact Person: Erin Yurday
Email: Send Email
Address:Ground Floor Street: 45 Pall Mall
Country: United Kingdom