Insuring properties as non-resident landlord

[makan18]

Hi,

As of this year I have became a non-resident landlord, since I left the UK pernamently. I got the quotation for the renewal from direct insurance, but after reading the policy I figured out two things. First of all it was only for UK residents, and secondly it wouldn`t cover the sub-letting ( I rent 1 of the flats to the company which sublets it for rooms on a longterm basis). My question is what are my options. I found an information that I should get in touch with the insurance broker. I have found some companies online but I would highly appreciate if you could give me some names of reliable companies you used in the past.

Thanks

Daniel

[Gordon999]

Usually the "buildings insurance cover" for a block of leasehold flats is paid through the service charge account. The insurance cover for landlord's effects inside the flat and accident liability is probably a separate policy under your name and you need to show a UK address in case of making a claim. Can you give address as c/o your letting agent address ?

If you are letting by rooms, the property need a HMO licence from your local council.

[tatemono]

I was a non-resident LL for many years prior to returning to the UK last year. If you're trying to go through a high street chain like direct, you'll find yourself out of luck for pretty much any kind of insurance (including car insurance BTW so watch that if you intend to drive any non-rental vehicle when back in the UK (and incidentally won't be able to renew your photocard driving license legally when it expires)).

I used Discount Insurance who deal specifically with LLs and they were aware that I was overseas. Seemed to be fine although I never had to make a claim while overseas. I did read the small print though and did not find any residence clauses on the policies I was sold.

However, things might be changing if you have moved to the EU. I had a bank account in the UK and that was one thing they were looking for in a non-resident LL. As of Jan 1st, it seems UK citizens living in the EU will not be able to maintain a bank account in the UK. (see here https://www.theguardian.com/money/20...arclays-brexit) so that might affect things.

Also, if you're British and have, as you say, left the UK permanently, you will no longer be domiciled here which will have legal implications for tax and the validity and execution of your will in the UK if you intend to hang on to your property and will it to someone. Sadly, I know this area of law in detail from the last six years of legal battles over my late mother's estate.

[makan18]

Thanks Gordon for you reply. I own 2 freehold flats in Scotland. The address wouldn`t be a problem I have many friends leaving pernamently in the UK, but I find it pointless tbh to use a insurance if there is a residency clause in the fine print. They are very happy to take money when everything is ok, but when things go south I assume they are trying to everything they can not to pay. I don`t actually sublet it, I rent it to the company which business is to sub-let. I wasn`t very convinced with the idea, HMO being one of the facts, but my agent has told me he will put the clause insinde the agreement that no more then 4 people can leave it in any given time ( large HMO in Scotland starts from 5 people).

Thanks tatemono, I will check what they have to offer. I moved back to Poland after being a tax resident in the UK for 4 years. I left the UK pernamently on April 2020 so I have to register as non-landlord resident with HMRC, and fill NRL1 form. Thanks for the information about the Barclays, I wasn`t aware of the situation, thats pretty bad. Atm I have a UK address under my account, that`s probably the reason they didin`t get in touch with me, I need to think what to do about it.

Actually I had a bad situation in one of my flats. It had been flooded from the upstairs. It turned out that the landlord above me didn`t maintain the drainage system, what caused a blockage and ruined the walls in the living room and bedroom. After a lot of struggle it had been handled by the building factor, and the landlord living above have been charged for the repairs.