Commercial Plan’s Specialist Landlord Insurance expert, Nick Cole, talks new landlords through some potentially unfamiliar terms
With many new landlords choosing Commercial Plan for their landlords cover our team has had the privilege of guiding a large number of new customers through the features of a policy.
We thought we’d help some prospective landlords do their homework with a glossary of terms that can be covered on any good Landlords Insurance Policy.
So what exactly will be covered on a policy under landlord’s contents?
“Just like ordinary home insurance, if as a landlord you are planning on furnishing the rental property with furniture, white goods or TV’s, then you’ll need to get ‘Landlords Contents Cover. But you’re not furnishing the property, the insurance will cover the kitchens, flooring and sanitary ware, and so contents isn’t necessary.”
What counts as an Unoccupied Property and why do I need this cover?
An unoccupied property isn’t just when your tenants go on holiday. Its cover for a property whilst it is unlet. Our ‘Unoccupied Property Cover’ is second-to-none. A lot of insurers don’t like to insure unoccupied properties because they are more likely to be burgled, and if a pipe leaks, there’s often nobody there to report it and so the damage can be extensive. But at Commercial Plan, we offer Unoccupied Property Cover that is ‘warranty free’, which means that the cover isn’t subject to the landlord draining the central heating pipes, for example, or visiting the property on a weekly basis.”
Another term which new landlords might not be familiar with is ‘Day One Uplift’?
Nick explains: “We insure properties on the basis of their re-build cost. So if a property costs £200,000 to re-build, a customer will take a landlords policy out to cover that amount. However, should something happen to the property nine months later and it requires rebuilding, the costs of labour and materials might have gone up in that time frame, so it could cost perhaps £250,000 to rebuild. Our cover provides a 50% uplift, which means a £200,000 property would covered up to a re-build value of £300,000.” In fact, most other insurance companies only offer 10-20% uplift, and Commercial Plan’s 50% limit is one of the most competitive on the market.
And what does ‘Trace & Access Cover’ relate to?
“This offers landlords cover should there be a problem with, for example, a water leak underground,” says Nick. “If a pipe is cracked on your property, the waterboard could say it’s not their responsibility, and a landlord could be required to foot the cost of not only tracing the leak, but also repairing it. With Trace & Access Cover, the insurance company would pay the bill, so this is a really important feature for landlords to consider.”
And why would a landlord need liability insurance?
‘Landlords liability insurance’ is another important features to consider when taking out a policy. It will cover a landlord should a tenant harm themselves due to something dangerous in the property, like a faulty light switch. The liability insurance will pay for any damages that are awarded to a tenant, as well as any legal costs,” says .
So for people unfamiliar with the various features of landlords insurance, it’s worth speaking to a specialist with expertise like yourself?
“Prospective landlords can give us a call and we’ll recommend the best policies for their needs,” says Nick. “Landlords are an extremely discerning type of customer and demand good insurance cover along with competitive premiums. At Commercial Plan, we can offer just that!”
*NB – since this post date we have undergone a re-brand to update our image. The various sub-brand departments that were within Plan Insurance such as Taxi Plan, Commercial Plan, Trade plan etc. were brought together under the one name of Plan Insurance Brokers in July 2015. Read more about our re-brand here.
Plan Insurance Brokers have 25 years experience specialising in Commercial Vehicle insurance as well as Taxi and Motor Trade insurance cover. You can read more about Plan in our about us section in the footer below.