Research from the BDRC Landlords Panel has revealed that landlords are not taking out suitable insurance on their rental properties and thus experiencing losses from uninsured void periods. Mark Long, director at BDRC Continental, spoke about the issue.
Mr Long explained that if a renter falls into arrears or ends a tenancy there would be a void period for the landlord. The BDRC research indicated that 37% of landlords experienced such a period in the third quarter of 2012, and that 47% of those properties then remained empty for over 40 days, leading to a significant loss of income for the landlords.
Furthermore, 47% of landlords encountered arrears in the same period, and the average amount owed was £2,366. Mr Long added, “Our research shows that only five per cent of landlords hold void period cover, meaning that almost a third of landlords are experiencing voids and have no means of protecting themselves against it.”
Reacting to the research, David Hudson, Director of leading Manchester commercial insurance brokers Buckland Harvester, said: “Times are good for landlords rights now. Rental rates are high, along with the demand, while property prices are relatively low at the moment. However that doesn’t lessen the need to be insured against all of the potential negative elements and costly incidents that could occur at any time.”
“Direct Line for Business conducted research that showed nearly 20% of UK landlords were uninsured, and the costs of repairs and labour on their properties was double the cost of an average landlord insurance policy. It just makes sense to be fully prepared.”
David concluded: “Landlords need to check they have the right type of insurance policy for their property, as rental properties are a completely different entity to standard homes. Also, if it’s right for them, they should consider a suitable landlord insurance policy, as it covers for the unexpected such as an unexpected loss of income.”
If you are concerned about insurance on a rental property or you landlord insurance policy please contact Buckland Harvester directly via Buckland Harvester at www.bucklandharvester.co.uk