When it is time to look for let property insurance quotes?

January 26, 2013

Landlords Insurance

It might be easier than you think to unintentionally become a landlord.

Here are a few thoughts relating that idea to let property insurance quotes:

  • insurance providers typically make a very major distinction between owner-occupied properties and those being used for the purposes of income generation;
  • the actual definitions may vary but broadly speaking, if you and your family are exclusively occupying a property you own, then you may be termed an owner-occupier and require appropriate buildings and contents insurance;
  • by contrast, if you own a property and use it for the purposes of obtaining rental income, then by definition you are running a commercial operation and are no longer eligible for owner-occupier buildings and contents insurance;
  • for the avoidance of doubt, that typically applies irrespective of whether you continue to occupy part of the property concerned.  So, even if you are only letting out a few rooms in your house to students or holidaymakers during the season, you are by definition a landlord and may need to look closely at your buildings and contents insurance if you wish to avoid them becoming invalid;
  • the form of cover you will typically require in situations where you are obtaining income from property is landlords’ insurance.  That may come in a number of different shapes and forms which any reputable landlords’ insurance provider will be able to advise you further on;
  • these basic principles typically apply in situations where you are obtaining income from tenants whether residential or commercial;
  • note that if you are obtaining income from property you may also have issues to consider relating to taxation, health and safety plus compliance with any local government registration and licence schemes;
  • if you are changing the use of a property from exclusively that of being owner-occupied to one where it is generating rental income, it would be advisable to discuss the matter in advance with your insurance provider if you wish to avoid any possibility of your existing buildings and contents cover becoming invalid.

It might be worth concluding by making the point that insurance providers typically check the occupancy status of a property in the event of a claim.

This is not something that you’ll wish to be caught out on in such a context.

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