What would you do?

Collapse
X
  • Filter
  • Time
  • Show
Clear All
new posts

  • What would you do?

    I've agreed to buy 3 terraced houses, all in the same area. 2 are adjoining, and tenanted. The other is a mile or so away and will be vacant on completion.

    I'm considering insurance. Ideally I'd like a policy that provides for legal assistance and unpaid rent cover. I'm aware that rent cover generally isn't available (or effective, at least) for three months, when a house is already tenanted.

    I'm then thinking that one property will be vacant initially, and that I'd want rent insurance when a tenant is vetted and accepted. And, as I'm in the hands of solicitors, the completion dates will almost certainly not be the same for each property.

    All rather complicated!

    My question: would I be best to treat each property separately and get a specific policy for each? Or, could a broker perhaps get me a better deal as a 'block' policy? If so, any suggestions?(Manchester)

    Thanks for any replies.

  • #2
    Insure each one separately. Block policies usually seem ok but if terms are imposed on one of the houses, the premiums on the rest can be affected.

    Comment


    • #3
      If give these details to a decent broker and ask the same question, they would take the time to look at both options for you and give you details of the positives and negatives of each.

      Block policies do obviously create discounts by putting all the properties with one insurer but for that to mean a saving, this one insurer needs to be the most competitive for all 3 houses. As they are all similar area and, I guess, similar sum insureds, etc, then this is quite possibly the case but even then the saving for just 3 houses would be quite small.

      It really is down to the individual requirements of yourself and the details of the specific properties. As one is initially unoccupied, it is likely this would be better on a separate policy due to the slightly different circumstances to the other two - in which case you may as well keep them all separate.

      No harm in asking for both options from the broker(s) you decide to contact and then you can make an informed decision.
      Steve Smith - Company Director at a leading Landlord Insurance broker with 17+ years experience in the industry
      LandlordZONE Verified Poster and Topic Expert for Landlords Insurance since 2009
      See my profile for contact details

      Comment


      • #4
        Really helpful replies, thanks.

        Comment

        Latest Activity

        Collapse

        • Landlords contents insurance
          james99
          My landlords contents insurance is up for renewal shortly. The property is only part furnished so probably only c£3k of contents (buildings insurance is arranged separately via management company). Anyone got any recommendations for cheapest insurer for such a low value of contents needing insuring....
          21-08-2017, 16:47 PM
        • Freeholder wants to change condition on lease renewal
          John Youngs
          I am in the process of purchasing a new 125 year lease on a BTL flat. The current lease says that in the event of a rebuild of the block being necessary the freeholder will pay any shortfall between the insured value & the rebuilding costs. The new lease removes this liability so only the insured...
          19-08-2017, 12:05 PM
        • Reply to Freeholder wants to change condition on lease renewal
          John Youngs
          Thanks for the reply.

          The lease is down to 56 years, the new one will be 125.

          The current valuation for rebuilding is £7m & insurance is £10m so is ok now. But I wondered what incentive there is for freeholder to keep this up to date. perhaps what you say about adequate...
          19-08-2017, 14:12 PM
        • Reply to Freeholder wants to change condition on lease renewal
          leaseholder64
          Are you renewing because the lease is about to expire, or are you doing so in order to extend one that has at least 21 years to run.

          In the latter case, you extend by exactly 90 years, and change the rent to one peppercorn per year (which will not, in practice, be demanded), without other...
          19-08-2017, 13:18 PM
        • Subsidence cover
          Lorimer
          I have trawled the internet etc. and made some phone calls but as soon as I mention the fact that the boundary wall in our front garden has developed cracks, we are refused cover.

          We have done some investigating and suspect that the cause of the cracks on the boundary wall is a large tree...
          08-08-2017, 06:49 AM
        • Reply to Subsidence cover
          Lorimer
          Agreed. I found that out when shopping around before renewal with the existing insurer. Good job I did not tell the existing insurer where to go in a fit of pique....
          08-08-2017, 17:55 PM
        • Insurance shot up due to water leaks from upstairs.
          Flashback1966
          I have an irresponsible landlord upstairs. Twice, the ceiling has fallen due to a water leak.

          The council are useless and gave no help.

          My insurance has gone up, as I have had two claims during recent years.

          Is there anything I can do about this? Can the upstairs...
          08-08-2017, 15:53 PM
        • Reply to Insurance shot up due to water leaks from upstairs.
          JK0
          What did you expect if you claimed on insurance rather than sued the guy?
          08-08-2017, 16:23 PM
        • Reply to Subsidence cover
          Flashback1966
          I don't understand why you did n't make a claim under the current insurance?

          I had a similar situation with a front garden wall, was leaning. The insurance company sent a surveyor at no cost to me.

          Whilst the house had strong foundation and was n't impacted by subsidence....
          08-08-2017, 15:48 PM
        • Reply to Subsidence cover
          JK0
          I believe you are over thinking this. You definitely want your existing policy to continue, as this will likely be the only firm who will insure for subsidence at a reasonable cost in the future. Also, I would not like to try to claim on your old policy if you have stopped it in favour of someone e...
          08-08-2017, 10:09 AM
        Working...
        X