Landlords urged to check home insurance policy
News Category: Industry News
Published: 15-Apr-2008
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Buy-to-let investors are being urged to buy insurance that is aimed specifically at landlords.
Specialist lender Paragon Mortgages has warned that standard household policies are designed for owner-occupiers.
Ordinary household policies often exclude burst pipes and theft cover if the home is unoccupied for more than a month.
Most standard household policies also carry a specific exclusion regarding malicious damage by a tenant.
Furthermore, landlords could face a large legal bill if a tradesman carrying out work is injured. In contrast, homeowners are usually covered by their policy's legal liability clause.
Tony Armitage, Paragon Insurance director, said: "Landlords need to carefully consider their insurance needs and ensure that they are properly protected.
"The biggest irony is that some landlords are actually paying through the nose for potentially unsuitable cover."
According to new research from Halifax Home Insurance, next-door neighbours cause £173 million worth of property damage each year.
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