Landlords Urged to Update Insurance Policies to Avoid Underinsurance

24 September 2012 Categories: News

Landlords Urged to Update Insurance Policies to Avoid Underinsurance

Eddie Hooker, CEO of  Total Landlord Insurance has urged landlords to reassess any aging insurance policies they have to avoid the possibility of underinsurance, after one landlord was left out of pocket by more than £100,000. The landlord in question, who suffered a fire in the block of flats he owned, submitted a claim for nearly £400,000 before realising that his aging insurance policy didn’t cover nearly that amount. As a consequence he received less than £300,000 and had to find the remaining money himself.

Mr Hooker said about the case, “This is a particularly extreme and unusual case, but it does highlight the importance of ensuring that your insurance policy is sufficient to cover the full value of rebuilding the property. In the current financial climate, it is more crucial to look at the levels of cover rather than the bottom line premium.”

Statistics released by Total Landlord Insurance show that 10% of all fire claims they deal with are due to tobacco smoking, while 5% are due to candles and another 5% are due to faulty electrical wiring. The statistics also show that houses of multiple occupation are more likely to be the cause of a fire claim than a family home.