I am debating myself on landlord insurance. My property was flooded about 8 years ago, floor replacement was covered by landlord insurance. Haven’t purchased any landlord insurance since the incidence. As we are facing more and more sever weather now days, I am considering to have an insurance in place. But the excess fee to flood is about £3000 which could be same as floor replacement cost. given the quote is about £300 annually. Just need advise from here. Many thanks in advance!
So are you saying that you have no insurance on the house at all? What if it was destroyed by fire? My understanding is that a landlord policy is essentially the same as any regular house insurance, but with a few added extras, the main one being third party and public liability cover. This means that if for example the tenant or their guest has an accident in the house that is linked to a maintenance failure, the insurance would cover it.
I would suggest you speak to a good insurance broker and describe your set up and ask for options.
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yeah, broker is a good option. Thanks!
I think it’s worth having ONLY for the extreme scenario where you need compensation for losing the entire property. I therefore have insurance that covers me for missed rent and I focus on the cover I need for replacing the entire building (i.e. get the rebuild value right each year and don’t bother with, say, emergency cover for a cracked sink or blown down fence. I self insure for those types of issues and, to keep the premiums down, have never made a buildings insurance claim in decades of letting multiple properties.
Thanks for advise. Can I ask how to accurately get the rebuild value, is it higher or lower than market value?
Search online for a rebuild value calculator and you’ll find it. Usually considerably higher than market value.
Rebuild value considerably higher than market value? Is that the ‘normal’ case? My simple thinking on this is that if you built a house, by the time you finished its value would be less than the value of the material you put into it. What obvious mistake have I made?
After a fire there is cost of demolition or clearing damage, surveyors , building control. . Missed out all the labour ? Normal for rebuilding to be more than just cost of labour and materials
An example from one of my properties. Market value at start of 2024 was approx £75,000. Rebuild value calculated online was £172,000.
Is it possible you might be misled by my use of the word ‘value’ and perhaps it would have been clearer that I was talking about ‘cost’? The terms rebuild value and rebuild cost are often used interchangeably.
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