What to Look for When Buying Property Owners Insurance
Protecting your assets
As we often say, as a Landlord your buildings are your most valuable assets. You certainly don't want to have any problems with them. Of course we always tend to think of major damage like fire or flood, but there are other areas of cover, which can be just as important and useful. So here you go; Insurance Buying Advice - Property Insurance.
We always hear about underinsurance and in one way, it is a simple matter. Your sums insured should represent the re-building values in the case of the structure and replacement values (normally as new) for the contents. There is plenty of material for guidance or seek professional advice. Some words of caution, particularly as far as Buildings are concerned;
- market value ≠ rebuilding cost. Market value can often be substantially different, sometimes less than the rebuilding cost.
- reducing sums insured will reduce cost of premiums, but beware, it will reduce settlement of claims. Think about this. If you reduce your premium and sums insured by 10% and you have a loss of € 1,000; you will receive € 900. Doesn't sound much, but multiply that by 5, 10 or 100 times and suddenly that € 100 underinsurance becomes significant. Unfortunately underinsurance tends to be for greater amounts and greater pain
What can Happen to your Assets?
As I mentioned above there are some obvious types of claims but other substantial types of loss can occur such as subsidence. For a more extensive description follow this link.
What to Insure?
Obviously the main object of this exercise is to consider the buildings. But what do we mean by building? It does vary from Policy to Policy, but generally they cover the structure itself and walls, fences, satellite dishes, yards, signs and car parks.
Any contents that you own on the Premises should be insured. Distinguish between fixtures and fittings which are part of the buildings and moveable contents.
Always look for covers such as;
- breakage of glass
- loss of rent
- fire brigade charges
If you have anybody working on your behalf even for a short time you are responsible for them. If they have an accident, then you could be liable for any damages awarded.
Property Owners Liability
Similar to Employers Liability, if any claims happen as a result of your negligence as a property owner, then this cover is a "must." Fortunately it is usually standard in most Policies.
Nigel Dickson 17th August 2016