Insurance comparison website Quotiva.co.uk has found as many as one in seven residential investment dwellings does not have adequate insurance.
“Oftentimes this is based on not understanding the reasons for landlord’s insurance, or simply not being aware of the risks,” said a spokesperson for Quotiva in a media release.
Landlords may not be aware of what landlord’s insurance covers, such as fire, natural disasters and unpaid rent.
A significant risk also comes from tenants subletting their properties through short-stay accommodation services like Airbnb, exposing the properties to potential damage. Landlord’s insurance generally protects against this, covering theft and assisting with legal costs should matters go to court.
Quotiva recommends landlords communicate with their insurers to make sure they are covered. “You’ve got to be open and honest with your insurer. In the end it all comes down to your personal circumstances, but you’ve got to know the details of your policy, what you’re covered for and where you’re potentially exposed.”
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