Landlord Insurance - Key Definitions Explained
Those of you that have Landlords Insurance or have ever thought about getting it will know that the thing that makes it hard to understand just what you are covered for is the definitions that the insurers will use that are sometimes misleading and can lead you to believe that certain things are covered when in fact they are only covered as long as their criteria are covered, therefore I"m going to explain in this article just what they mean and hopefully allow you to understand the exact cover that you are getting.
The first thing that many people get confused with is when they have buildings only cover and they believe that things like the kitchen and bathroom will come under the contents insurance, however this is not always true. Most insurers see that if it is a fitted kitchen or a fitted bathroom then that will be under the buildings cover on the policy rather than the contents insurance. Buildings cover does not just stop at the actual property though and will often include garages, patios, greenhouses, fences and gates as well.
One of the other main perils that is often misinterpreted is the peril of storm damage where most people will assume that storm is any high wind, rain or weather condition that affects the property and causes damage, however insurers have put a limit on what the wind speed has to be before you can claim under this peril. Insurers tend to put the limit that the wind has to be between 41 and 47 knots which is the Beaufort scale number 9, therefore you can only claim if the wind is that speed and anything less than that you will have to pay for the damage yourself.
The final thing that can often be rather confusing for the person that is looking to get Landlords Insurance is whether or not the property is defined as unoccupied or tenanted. Most people would assume that the property is unoccupied if there is not tenant living in the property and that this is quite straightforward however the insurance companies seem to have decided that they want to confuse us as this is not the case. The insurance companies see that the property is occupied either when there is a tenant in the property or if there has been a tenancy agreement signed. So if you have a tenancy agreement signed and you are looking for Landlords Insurance then they will usually accept this as an occupied property so be sure to ask them about it.
These are the most common things that people say they are unclear about when it comes to Landlords Insurance and hopefully that has now cleared them up and will give you a better insight into what you are purchasing. Remember if there is anything else that you are unsure about then you can always talk to your insurance broker about these things but hopefully the main things that you will be confused about have all been covered.
The first thing that many people get confused with is when they have buildings only cover and they believe that things like the kitchen and bathroom will come under the contents insurance, however this is not always true. Most insurers see that if it is a fitted kitchen or a fitted bathroom then that will be under the buildings cover on the policy rather than the contents insurance. Buildings cover does not just stop at the actual property though and will often include garages, patios, greenhouses, fences and gates as well.
One of the other main perils that is often misinterpreted is the peril of storm damage where most people will assume that storm is any high wind, rain or weather condition that affects the property and causes damage, however insurers have put a limit on what the wind speed has to be before you can claim under this peril. Insurers tend to put the limit that the wind has to be between 41 and 47 knots which is the Beaufort scale number 9, therefore you can only claim if the wind is that speed and anything less than that you will have to pay for the damage yourself.
The final thing that can often be rather confusing for the person that is looking to get Landlords Insurance is whether or not the property is defined as unoccupied or tenanted. Most people would assume that the property is unoccupied if there is not tenant living in the property and that this is quite straightforward however the insurance companies seem to have decided that they want to confuse us as this is not the case. The insurance companies see that the property is occupied either when there is a tenant in the property or if there has been a tenancy agreement signed. So if you have a tenancy agreement signed and you are looking for Landlords Insurance then they will usually accept this as an occupied property so be sure to ask them about it.
These are the most common things that people say they are unclear about when it comes to Landlords Insurance and hopefully that has now cleared them up and will give you a better insight into what you are purchasing. Remember if there is anything else that you are unsure about then you can always talk to your insurance broker about these things but hopefully the main things that you will be confused about have all been covered.
