It’s not every day that I think about insurance. I know that my household cover is due in January, my car policy is sometime in the Spring and my life cover should see out my mortgage. It is relatively simple to keep on top of these personal policies – because let’s face it – there isn’t that much to consider.
But when you’re running a business, particularly one which involves as many valuable assets as your average letting portfolio, it gets a little complicated. The NLA tries to make this as simple as possible by providing NLA Property Insurance and NLA Rent Guarantee Insurance, however even this doesn’t necessarily take away all of the hassle of making sure that you’ve got adequate cover.
It can be difficult to identify all of the risks when you’re running a business, which is one of the reasons the NLA undertakes so much research about our members’ experiences and ways of doing business.
In our most recent Landlord Survey we asked a number of questions about the way in which landlords approach risk and, in particular, the kinds of insurance they hold. The responses we received were in many ways reassuring, but in no small part alarming when viewed in the context of risk.
Reassuringly, all but the three most daring per cent of landlords surveyed have some form of relevant insurance. The majority (85 per cent) have buildings cover and it could be inferred that the remaining 15 per cent own leasehold property whereby the insurance is provided by the freeholder (we hope).
However, only half have landlords have contents cover – despite the fact that even an unfurnished property can contain thousands of pounds of contents in the form of white goods, floor coverings, curtains etc, which many of us simply overlook.
The potential consequences of being under-insured are even more apparent when you consider:
The Landlord Panel also indicated that 37 per cent had their property damaged by their tenants and 47 per cent had experienced rental arrears – despite only 13 per cent possessing arrears cover.
It’s up to every landlord to weigh up the risks of incurring unexpected costs against the cost of insuring against it. However, the knowledge that one in three will have property damaged every year and almost one in two will suffer loss of rent may help sway that decision.
The information landlords share with the NLA through it’s quarterly surveys allows us to represent their interests to policy makers and ensure that the Association is well placed to support landlords in their businesses.
Please spare a few minutes to take part in the NLA’s Q4 Landlords Survey and enter the prize draw for the chance to win £50 to spend with John Lewis.