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Insurance is 'crucial when letting out properties'
People planning to let out their properties to tenants have been reminded of the importance of taking out insurance.
Operations manager at the Association of Residential Letting Agents (Arla) Ian Potter has told potential landlords they will require cover for other people to live in the home.
He stated: "Whatever insurance they have on the property [needs to] cover them for lettings, because an awful lot of them don't."
Mr Potter went on to say an insurance policy that includes lettings protection is a "specialist product", but is crucial when planning to rent the property to tenants.
Without lettings cover, property owners may find that their provider does not cover them should something go wrong.
If there is a fire, Mr Potter said, the insurance company might claim that it did not know it is being rented out and therefore will not pay for any damages to be fixed.
It is also important to look after properties, even if they are being rented to tenants, as Saga recently revealed that the total cost of fixing maintenance problems is more than £900 million.
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Operations manager at the Association of Residential Letting Agents (Arla) Ian Potter has told potential landlords they will require cover for other people to live in the home.
He stated: "Whatever insurance they have on the property [needs to] cover them for lettings, because an awful lot of them don't."
Mr Potter went on to say an insurance policy that includes lettings protection is a "specialist product", but is crucial when planning to rent the property to tenants.
Without lettings cover, property owners may find that their provider does not cover them should something go wrong.
If there is a fire, Mr Potter said, the insurance company might claim that it did not know it is being rented out and therefore will not pay for any damages to be fixed.
It is also important to look after properties, even if they are being rented to tenants, as Saga recently revealed that the total cost of fixing maintenance problems is more than £900 million.
Copyright
Published: 03/10/2011
The information in this article was correct at the time of publication and contains time sensitive data and links, it may not be accurate at the time of reading.