With a spate of extreme weather – well it seems extreme because the country seems not to be able to cope with a bit of snow – over the past few months, property owners could be forgiven for wondering why they cannot get the same sort of emergency insurance as owner occupiers can. The answer to this is, perhaps surprising, they can!
For a relatively modest cost, property owners can purchase insurance that protects them against most forms of unforeseen emergency in the same way as owner occupiers. This is particularly important, because they cannot always be on the spot to deal with matters personally, and tenants will expect issues to be dealt with quickly and efficiently. After all, that is what they pay their rent for.
Home emergency insurance is not the same as property owners insurance – it is an add-on rather than a substitute. If, for example, you have a blocked toilet which results in damage to decorations, fixtures and any contents you have in the property, this is a matter for ordinary buildings and contents insurance.
By the same token, however, that insurance will not pay for the actual repair to the toilet – that is a maintenance matter and not covered by conventional policies. However, home emergency insurance is designed to provide emergency support to you 24 hours a day 365 days a year. This includes not just finding someone to do essential work for you quickly, but also covers the cost, usually up to a limit of about £1,000.
Cover is quite broad and includes such events as: – Burst water pipes – perhaps in the thaw after a freeze – or the failure of guttering and down pipes; – Failure of domestic electricity, gas or water supply; – The total breakdown of a heating system; – Failure of the only toilet in the property; and other events – even pest infestations.
Importantly, there is also usually a level of cover for alternative temporary accommodation, so that tenants can get a good night’s sleep while things are being sorted out.
There are of course some exclusions depending on the type of landlord insurance – such as general maintenance, events within the first 28 days of the insurance and longer term work – once the emergency has been resolved. If there were not, the insurance would have to be much more expensive than it is!
It is therefore important that you seek independent professional advice before making any decision about your property owners insurance. You should always ask your insurance advisers what experience they have of dealing with residential and/or commercial rental property insurance.
