Insurance for Landlords

Over the years, one of the most common things I've seen landlords misunderstand is the extent to which they are insured. Of course, they don't realise this until the point of claim, and by that point it's too late. The situation isn't helped by insurers using very similar terms to describe very different things. I've tried on a number of occasions to simplify this for my landlords but given that problems still occur, I've clearly not been that successful! I'm hence going to give it another go here. Equally, we (Belvoir) sell insurance and it's actually really good. We've always tried to not be pushy regarding this, but I'm going to sell the benefits here as I'm aware of how many landlords choose rubbish cover and regret it later.

Buildings Insurance

• "Landlords" buildings insurance is not the same as buildings insurance on a property you live in yourself. "Landlords" buildings insurance has an element of public liability cover in it. So if a tenant falls downstairs and makes a claim against you, your "Landlords" buildings insurance will cover you, whereas a normal domestic policy won't.
• Some policies also cover "loss of rent". This will be following an incident such as a flood or a fire. It's unlikely to cover rent when a tenant doesn't pay it.
• A cheap policy will exclude cover for any damage the tenant causes, or anything their pets do.

Belvoir's buildings insurance policy is comprehensive in terms of what it covers - you can't buy it on the high street - it's available to our landlords only and includes:

• automatic contents cover (up to £5,000)
• cover for up to 120 days of the property being unoccupied.
• damage by the tenant.
• damage by pets.
• following an 'incident', loss of rent and the cost of re-letting.

Rent and Legal Expenses Insurance

• Often referred to as Tenant Default Insurance.
• Covers you if the tenant doesn't pay the rent. 
• Covers your legal / court / solicitors costs in getting rid of that tenant. 
• Carries on paying 75% of the rent for 2 months after the eviction and whilst you relet.

Belvoir's Rent and Legal Expenses Insurance is again very good quality cover - it does exactly what it says with very few restrictions. Common areas of misunderstanding are:

• "I can get a cheaper policy elsewhere". Actually you can get a free one if you search hard enough, but if you think you're comparing apples with apples, you're being optimistic. You get what you pay for, and as anyone who's needed to claim will testify, £130ish per annum per property is cheap. 
• "I'm already covered under my buildings policy". Possible, but highly unlikely. Your buildings policy will pay your rent following an insurable incident (eg a fire). It won't pay simply because your tenant hasn't.
• "But my tenant's been OK so far". A couple of landlords cancel cover each year for this reason. But then what if the tenant loses their job, or the couple in the property split up and one moves out? It's like saying you don't need cover for flood because it's not raining at the moment. 
• "If they can't pay the rent, they'll just have to leave". Yes, but it can take several months to make that happen if the tenant isn't co-operative. And the costs of eviction from someone like Landlord Action can be close to £1000, and in the meantime 4 months of no rent at £600 a month is £2,400. Evicting a non payment tenant is not a cheap business. 

TENANTED, Dryleys Court, NN3 - Return on Investment of 25% per annum

Again this is tenanted, so a purchaser can pick it up with as a going concern with rental income from day 1. We've had the property rented out for about 3 years, after the current owner upgraded it. As such it's in pretty good order internally with no immediate spend required. It's a 3 bed house, freehold. 

Return on Investment Figures Here

If you're interested, please contact us here.

SOLD 8 Kirton End, Northampton, 2 Bed House, Return on Investment of 19%

This has also appeared recently and offers good value for someone. It's a 2 bed house in seemingly VERY good order so there will be no problem attracting a tenant. But it's not in the best are of town, so I've been cautious (maybe too cautious) on the rent, quoting £525PCM.

Return on Investment Figures Here.

If you're interested, email us here.

Studio, Colwyn Road, Return on Investment of 25%

A tiny flat - 1 room and a bathroom, but it will rent at £425PCM. Not that impressive to look at(!) and needs a minor amount of updating, but this offers an annual return on investment of 25%, AFTER COSTS. As such a no brainer for someone (who will buy it because it makes financial sense, not because they fall in love with it!).

Return on Investment Figures Here.

If you're interested, please contact us here.

TENANTED 120 Stanhope Road, Annual Return on Investment of 19%

This can be bought tenanted. It's a Victorian Terrace in Stanhope Road, in very good order (no spend required to improve currently) that we've had rented at £600+ for the last few years. Void periods of less than 3 weeks in the last 3 years. 

Return on Investment Figures here.

Email us here if you're interested.

45 Marseilles Close, Annual Return on Investment of 18%

A modern 2 bed house offered with vacant possession.

This is a 2 bed house in New Duston - one of the nicer areas of Northampton, so it represents a "safe" bet for investment purposes and will appeal to people who like to buy things in areas they would feel comfortable with themselves. 

Return on Investment Figures here.

If you're interested, please contact us here.

SOLD Victorian Terrace at a slight discount. £95k.

An opportunity here to buy something at a slight discount, which is no mean feat in the current market. This is advertised at £95k, but I understand that an offer of £85k may be considered (not lower). It's worth £105k in immaculate order. 

I've seen this property and there doesn't seem to be anything fundamental wrong with it. It needs updating certainly, and the purchaser should expect to spend £10k at least. It's also pretty badly presented by the current occupier, which I suspect may be what is putting the majority of purchasers off. Look past this though, and if you can buy for £85k that's a cheap buy. 

It's about 1 mile from the town centre and will rent for £550 when done to a private tenant. A nice addition to the portfolio for someone.

Any questions, please ask me. richard.baker@belvoirlettings.com