Those landlords who did splash out on insurance found it took up 16% of their annual costs. Repair-related payments made up a third of annual costs, while redecoration and property management firms said policies took up 14% and 13% respectively.
Mortgages for Business managing director David Whittaker said he was surprised the figure was so small: “I would have expected the figure to be higher especially when you factor in ‘accidental’ landlords who own property outright and don’t have a lender to nudge them about such things.
“Landlords who do have the appropriate insurance will have had to have made a commercial decision about the extent of cover. Things like rent guarantee and accidental damage can really push the price up, so landlords need to weigh up the risks carefully to decide what works for them.”
Direct Line for Business head Jazz Gakhal said it was vital landlords got the right cover for their properties: “You are unlikely to be covered in a standard home insurance policy, and there are many valuable extras available, including rental income protection if your property is uninhabitable due to an insured event such as a fire or a flood.
“A good landlord’s policy will also include public liability insurance also known as property owner’s liability insurance as standard as you could be held liable for injuries on your property or damage to neighbouring property.”
