The UK has surprisingly a relatively low number of residential properties that are rented privately, roughly the equivalent of those in social housing. At around 10% of the total housing stock, private rented accommodation is a far cry from the days at the end of the First World War, when up to 80% of people paid rent.
However with average house prices in London now being between 10 and 20 times the average City wage, renting is often the only option for people that wish to live there. Over 22 million people in the UK live alone.
So the likelihood is that the rental market is likely to be a profitable venture for professional property owners for some time to come.
Standard household insurance is not designed for properties that are either partially or wholly rented to others. Various policies exist for professional lets, but these may not be suitable where only part of a property is for rent.
Direct Line insure over 200,000 landlords and their policies cater for most needs of the professional landlord, including boiler breakdown and rehousing of tenants after a serious claim.
Endsleigh Insurance offer a policy for tenants living in rented accommodation on a sole basis or with friends.
At Buildings2Insure we are mostly interested in designing policies for people that need to insure their main home with us, but who have decided to use outbuildings or completely separate properties to generate a useful income to supplement their general earnings. We are also normally happy to arrange insurance for people that have fee paying guests in their homes, be they on a “bed and breakfast” basis or as short or long term residents.
High Net Worth insurers are not usually excited about offering cover where there is a large element of rental to third parties, for the obvious reason that the risk of theft or mysterious disappearance of items is enhanced under such circumstances. They may also not be prepared to insure a property that is being converted to residential use. Following recent relaxations in the planning regulations, many former offices above shops or buildings such as churches and pubs are now being developed into flats and maisonettes.
As with all of our other policies, each client and risk is assessed according to its own insurance “demands and needs” and we are happy to consider most circumstances.
For more information call Anthony Wakefield or Robyn Homewood on 01306 734105