Tag Archives: damage

Landlords…Make sure you are covered for flooding

February 20, 2012

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Landlords who have buildings and contents insurance to make sure they are completely covered for flooding. This is especially for landlords who let out their property with furnishings.

The environmental agency has reported that the average cost of home flooding damage is £28,000 which is a massive amount compared to fire damage (£7,300 from losses) and burglary (£1,000).

Due to the amount that damage can cost is really does show you that it pays to be properly covered. If your house becomes so damaged it becomes inhabitable then you will also lose out on rental income.

At CIA Insurance we have competitive quotes for buildings and contents insurance, or if you wish we have separate buildings insurance and contents insurance cover.

A house damaged by flooding

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Keep your insurance valid, or massive consequences will occur!

January 26, 2012

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Thinking about renting out your property?

 Want to go on a long holiday and don’t want to leave your home empty?

 Sometimes leaving your home vacant may be a better idea!

You want to take a break, a year-long trip but you would also like to keep money coming in while you are away, so you let out your property.

To avoid agent costs you privately advertise your home and get the offer you want almost straight away. You think you are letting out to a nice, young and upmarket couple and go off on your break blissfully unaware of what will happen while you are away.

The holiday is half way through its course when you get an urgent call from your neighbour, you need to fly home immediately because there has been serious damage caused to your home by the tenants.

What you didn’t know is that your perfect tenants in fact like to party, a lot! They have destroyed your home and even personal belongings have been damaged.

The tenants have fled, of course, leaving you with a completely destroyed property. Obviously the first thing you do is contact your insurance company who sympathise with you, but when you tell them it was tenants who caused all the damage they tell you the bad news:

“Ah well I am afraid you are not covered for this as your policy is owner – occupied and not covered for tenants “

That was a big mistake made as now you have to use your own money including your savings to rebuild your property.

The insurance on your property automatically becomes void if you don’t notify them of any changes, it is so easy to phone your insurer and say you are now letting your property out to tenants.

"Ah well I am afraid you are not covered for this as your policy is owner - occupied and not covered for tenants "

You may also want to think about using a professional letting agency, they do take a cut of the monthly rent (around 10%) but you can pursue them if anything goes wrong.

If you do decide to privately advertise your property, make sure you have taken every step to protect yourself and find the right tenants. Never jump into the deep end, do your research and do background checks. Also have guarantors to sign for them to make sure you are not taken for a ride. Always get a deposit from the tenant, usually two to three months rent to cover any costs of damage that may occur.

Make sure you are covered for damaged property!

Remember, tell your mortgage company and insurer to keep your insurance valid!

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Rights and obligations- a tenancy agreement

October 4, 2011

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What is a tenancy?

  • A tenancy is a contract between a landlord and a tenant what allows the tenant to live in a property as long as they pay rent and follow the rules.
  • A tenancy agreement is the document agreed between a landlord and tenant which sets out the legal terms and conditions of the rent contract. A tenancy agreement should be prepared before anyone rents the property.
  • Tenancy agreement can be either written or verbal, but you should use a written tenancy agreement where possible. This will avoid any disputes at a later date as all the tenancy information will be in writing. Check you understand any terms before agreeing to them!
  • Whether or not a tenancy agreement is in place, landlords and tenants still have certain rights and obligations under the housing legislation.

    Tenancy Agreement...

Rights and obligations under a tenancy agreement

Your rights and obligations as a tenant…

  • You should have the freedom to live in the property undisturbed.
  • The property should also be kept in a good state of repair which your landlord should keep an eye on. They need to maintain the property as you have the right to live in a well maintained place.
  • You should always have the right to access any information about your tenancy at anytime.
  • You should be protected from unfair eviction, unfair rent and you have the right to challenge excessively high charges.
  • The deposit you paid should be returned to you when your tenancy ends.

If you moved into the property before 15th January 1989 you may have a regulated tenancy and additional rights.

Tenants who breach their agreement for example failing to pay rent, you have failed to comply to the terms and conditions and loose your legal rights as a tenant.

Your rights and obligations as a landlord…

  • When the tenancy ends, you have the right to repossess the property.
  • Take back the property if it gets damaged.
  • By giving 24 hours’ notice you can enter the property.
  • Take legal action to evict the tenant, in some cases this is used if the tenant is not paying their rent.
There may be other rights and responsibilities included in your tenancy agreement.

We hope you found this information useful. Please remember to use CIA Insurance when you or your family and friends need motorcycle insurance, landlords insurance or commercial insurance.

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