Property Insurance in Plain English
Property Insurance & Landlords Accreditation in Plain English
01. What is “Property insurance”?
02. Who is a “Property Owner” or landlord?
03. Is Property owner/ landlord insurance necessary?
04. What can be covered under property insurance?
05. What is “loss of rent” cover?
06. What is “alternate accommodation”?
07. What is “comprehensive legal expenses cover”?
08. What is property owner’s liability?
09. Do I need L1 million cover for Property owners liability?
10. What is “landlord accreditation”?
11. Who is an “accredited landlord”?
12. What benefits do I have when I become an accredited landlord?
13. How much does it cost to become an accredited landlord?
01. What is “Property insurance”?
Property insurance covers specified property/properties, against events such as fire, storm or theft.
02. Who is a “Property Owner” or landlord?
Any individual or an entity that has a legal ownership of a property is deemed to be a property owner. But with regards to this type of insurance, the property should not be occupied by the owner/landlord as their/their family’s main residence.
03. Is Property owner/ landlord insurance necessary?
Property owner’s insurance is not “mandatory” (a legal requirement). However, it is an important consideration for the “property owner” or “landlord” to protect him and his tenants and is highly recommended.
04. What can be covered under property insurance?
Standard property insurance can insure against loss or damage caused by fire, lightning, explosion, earthquake, smoke, storm, tempest or flood, escape of water, frost damage, escape of oil, theft, attempted theft or hold-up, riot, civil commotion, strikes, labour and political disturbances, damage caused by malicious persons or vandals, impact, subsidence, landslip or ground heave of the site on which the building stands, accidental damage to any cables or underground service pipes servicing the property, accidental breakage of fixed, sanitary fixtures and ceramic hobs forming part of the property. All covers are subject to certain restrictions and exclusions.
05. What is “loss of rent” cover?
In the event of loss or damage to the property by an insured peril rendering it uninhabitable, until repairs are completed, your policy will help to meet the loss of potential rental income, up to a stated limit. This amount could be a percentage of the building sum insured or a figure stipulated by the landlord.
06. What is “alternate accommodation”?
If your home is so badly damaged that you cannot let it until repairs are done, your policy will help to meet the reasonable cost of alternative accommodation up to a stated limit.
07. What is “comprehensive legal expenses cover”?
Legal Expenses insurance protects your interests in the event of legal disputes and provides cover for the costs of attorneys, experts and court proceedings as well as any amount paid to the claimant.
08. What is property owner’s liability?
Property Owners Liability insurance protects you against any amount you are legally liable to pay as compensation for accidental bodily injury to a person or loss of or damage to a property, plus your defence costs and expenses arising as owner of the property.
09. Do I need L1 million cover for Property owners liability?
There are generally 3 levels of cover – L1/L2 or L5 million. Unless specifically requested, normally the liability cover would provide cover for up to L1 million
10. What is “landlord accreditation”?
The London Landlord Accreditation Scheme (LLAS) provides you with the necessary skills to run a successful business. Irrespective of whether you are new to the business or are already running a successful portfolio, to be accredited under the LLAS will assist your business and give you access to many useful services and benefits.
11. Who is an “accredited landlord”?
Once you follow a programme/seminar set up by LLAS, you would be provided with an Accreditation certificate. This proves that you are an accredited landlord. This would entitle you to the benefits of becoming an accredited landlord.
12. What benefits do I have when I become an accredited landlord?
There are many benefits from becoming an accredited landlord – this varies from having improved and up-to-date knowledge of the key issues of property management and landlord-tenant legislation to financial savings in terms of property insurance. Full details could be found on http://www.londonlandlords.org.uk/accreditation/about.
13. How much does it cost to become an accredited landlord?
L74.90 (L63.75 + VAT) for the development course, if booked on-line. This is a discount of over 20% on the normal fees of L94.00 (L80 + VAT).
