Landlords may be leaving themselves at risk of substantial losses by not having specially designed insurance policies for rented property, according to Paragon Mortgages.
Paragon says most household insurance policies are designed for owner-occupiers and will not cover specific problems which landlords may face.
Unoccupied properties are of particular concern, according to Paragon, as many standard policies will not cover burst pipes or theft for properties left unoccupied for more than 30 days, which can be common during void periods and refurbishment.
Landlords also risk malicious damage by tenants and many standard insurance policies carry exclusions for intentional damage and many will not cover the loss of rental income while refurbishments are carried out.
Lastly, tradespersons working on a property may not be covered for injury under standard personal liability cover.
As the policyholder, the landlord, is connected to the property through a trade or profession, meaning they will need personal liability and employers liability should a tradesperson injure themselves while carrying out work at the property.
Paragon’s insurance director, Tony Armitage, comments: “Landlords need to carefully consider their insurance needs and ensure that they are properly protected. Paragon customers have sophisticated insurance requirements for which a typical household policy is often unsuitable.”
He says specialist cover is a necessity for landlords as they will often be paying high costs for insurance policies which don’t cover their full range of needs.
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