Landlords advised to revise property insurance

 

Landlords are advised to check their properties are adequately insured following a fire that left one landlord £100,000 out of pocket.

Propertywire.com reports that in the case, handled by Total Landlord Insurance, the affected landlord incorrectly assumed that he would be covered for the damages, which started after a tenant accidentally set fire to their kitchen with petrol.

However, it emerged that in fact the property had been under-insured for many years, leaving him with the six-figure loss.

As a result of the case, landlords are urged to contact their insurers to check they have adequate cover, or alternatively have property management services do this on their behalf.

"This is a particularly extreme and unusual case but it does highlight the importance of ensuring that your insurance policy is sufficient to cover the full value of rebuilding the property," said Eddie Hooker, chief executive officer of Total Landlord Insurance.

"In the current financial climate, it is more crucial to look at the levels of cover rather than the bottom line premium," he added.

According to the Office for National Statistics 'Fire Statistics: Great Britain, 2010 - 2011' report on communities.gov.uk's, more than half (51 per cent) of accidental fires in homes arose from cooking.

Other common sources of ignition included those from: electrical appliances (12 per cent), electrical distribution (10 per cent), smokers' materials (seven per cent), and space heating appliances (four per cent).

Author: Properties ABC