Properties, occupants, rents, rebuilding costs and portfolios change. An annual insurance health check helps ensure the information behind the policy remains accurate and the cover still reflects the landlord’s circumstances.
1. Are the insured property details correct?
Start with the insurance schedule and check every address, property type, construction, ownership and use. For a portfolio, reconcile it against the current property list.
Look for additions, disposals and conversions. Flats, houses in multiple occupation, student lets, supported housing and properties leased to housing providers may require different underwriting information.
2. Does the declared occupancy reflect the current arrangement?
The people occupying a property and their basis of occupation can affect the risk. Check the declared tenant type, tenancy or licence arrangement and any managing organisation.
Record changes promptly, including a property becoming empty, changing use or undergoing works. Unoccupied-property conditions may require notification, inspections, security or action concerning heating and water systems.
3. Is the rebuilding cost still adequate?
The building sum insured should normally reflect rebuilding cost, not market value. Demolition, debris removal, professional fees, access and current construction costs may influence the amount required.
Index linking may help but cannot correct an inaccurate starting figure or necessarily account for alterations. An appropriate rebuilding cost calculator or professional assessment may be needed.
4. Are rent and alternative accommodation limits realistic?
Check whether the loss-of-rent period and amount reflect the current rent, likely repair timescale and the landlord’s financial exposure.
Do not assume every interruption to rental income is covered. The cause of the loss, policy wording, indemnity period, limits and exclusions all matter. Rent guarantee or rent-and-legal-protection products address different risks and should not be confused with buildings loss-of-rent cover.
5. Have the optional sections and extensions been reviewed?
Consider relevant options such as landlord’s contents, accidental or malicious damage, legal expenses, rent protection, home emergency assistance and trace-and-access costs. Availability and terms vary.
The important point is understanding what is included, excluded and left as the landlord’s risk.
6. Are liability limits and responsibilities appropriate?
Property owners’ liability can be important if somebody alleges injury or property damage. Check the limit, exclusions and requirements applying to shared areas, building works or employees.
Responsibility may also be divided between an owner, freeholder, managing agent, letting agent or housing provider. Contracts and leases should be considered alongside the policy so that gaps and unnecessary duplication can be identified.
7. Is the claims and incident record complete?
Prepare an accurate history of claims, losses and relevant incidents for each property. Include outstanding matters and events that were reported even if they did not lead to a payment. For larger portfolios, use a consistent property reference and record the cause, date, cost and action taken.
Claims patterns may reveal a need for maintenance, security improvements, leak detection or different excess arrangements.
8. Have excesses, conditions and exclusions been read?
A lower premium can be accompanied by a higher excess or narrower terms. Compare the excess for escape of water, subsidence, flood, malicious damage and other sections rather than looking only at the headline price.
Review conditions concerning inspections, security, maintenance, flat roofs and unoccupancy. Insurance does not replace routine maintenance, and failure to comply with a relevant condition may affect a claim. The insurer decides whether cover applies and how a covered claim is settled.
9. Has the landlord made a fair presentation of the risk?
Many landlord policies are non-consumer insurance contracts. The Insurance Act 2015 requires the insured to make a fair presentation of the risk before the contract is entered into and when relevant variations are made.
Landlords should answer questions accurately, disclose material circumstances and search the information available to them. If uncertain, raise the matter with the regulated broker.
10. Is the renewal being actively reviewed?
Renewal should begin early enough to correct records, answer questions and consider alternatives. Clear Insurance Management re-brokes the policies it has arranged each year, using the information provided to consider the available options.
The cheapest premium is not automatically the most appropriate result; limits, exclusions, excesses, service and the insurer’s requirements all matter.
What should landlords send to NetRent?
Send NetRent the current renewal invitation, policy schedule and any available statement of fact. For a new property, provide the address, property type, purchase or completion date, occupancy plans, rebuilding cost information and expected rent. Portfolio landlords should include a current property schedule and claims history where available.
NetRent has more than 23 years’ experience of landlord insurance and the private rented sector. We speak personally to every client, learn about their properties and requirements, and raise areas they may not previously have considered.
Only after that discussion do we introduce them to our business partner, Clear Insurance Management, which provides regulated insurance broking services, considers options and arranges cover.
We remain available to assist landlords throughout the relationship. Through our scale and working relationship with Clear, we seek appropriate, cost-effective insurance rather than focusing only on the lowest headline premium.
For an annual insurance health check, a forthcoming renewal or a newly acquired property, call NetRent on 01352 721300 or email insurance@netrent.co.uk.
NetRent does not provide legal advice. This article represents our general understanding of the landlord insurance and rental property market and is provided for information only.