When/Is car insurance "business" level of cover for Private property investors?

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    When/Is car insurance "business" level of cover for Private property investors?

    Hi everyone,
    First post here from an aspiring Landlord I'm planning my first BTL and I'm wondering whether or when would a property investor would need "business" level of cover for his car insurance?

    I'm particularly interested to know the answer for the case of a landlord whose properties are fully managed by a letting agent. It still feels like a grey area, even though I read a few description for what "business" level of cover means an when it's required...

    thanks for chipping in !

    #2
    I have always taken the business use option. It doesn't cost a lot. Otherwise sod's law dictates you will have an accident when you are unexpectedly called out to see your tenant.

    Comment


      #3
      Bit of a can of worms opened here!

      As JK0 says above, you'll probably find if you compare the price of standard (social/domestic) use and business use the difference won't be much. If you visit your properties during the year then you probably do need business use. However, business use on a car insurance policy is usually for the policyholder's primary occupation and most landlord's have a main occupation that probably isn't letting properties so simply adding business use to a policy doesn't suffice. Every insurer/broker differs in how they would handle this so you can only really get your answer by speaking to them.

      I wonder how many landlords actually get business use?
      Steve Smith - Company Director at a leading Landlord Insurance broker with 20+ years experience in the industry
      LandlordZONE Verified Poster and Topic Expert for Landlords Insurance since 2009
      See my profile for contact details

      Comment


        #4
        Originally posted by ashburnham View Post
        However, business use on a car insurance policy is usually for the policyholder's primary occupation and most landlord's have a main occupation that probably isn't letting properties so simply adding business use to a policy doesn't suffice. Every insurer/broker differs in how they would handle this so you can only really get your answer by speaking to them.
        Pretty sure every time I've taken out a car insurance policy over the past X years they ask you do you want business use (Y/N). then ask your primary occupation (which as you surmise, for me is something not landlord-related); and then ask for a secondary occupation, for which I fill in my landlord bit. I've experimented with adding and subtracting business use on these internet screen-scraper brokers (just to see how much difference it makes), and usually the answer for me is "none at all".

        Comment


          #5
          Yes, we have the secondary occupation question on our car insurance system. I personally haven't used the system for customers' policies for at least 5 years but I vaguely remember something along the lines of business use only being for the primary occupation listed and if we wanted it any different we had to get permission from the insurer and an endorsement added to allow this. Like I say this was a long time ago and is only my hazy recollection of our insurance system!
          Steve Smith - Company Director at a leading Landlord Insurance broker with 20+ years experience in the industry
          LandlordZONE Verified Poster and Topic Expert for Landlords Insurance since 2009
          See my profile for contact details

          Comment


            #6
            Fantastic, thank you all for your help !
            I shall contact my insurer to determine the best way to be insured whilst being a landlord.

            Comment

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