You should advise your Insurers, both Buildings and Contents, of your intention to let the property. They may advise on any additional cover or exceptions that are necessary. Some Insurance Companies have restrictions on properties rented to tenants who are in receipt of Council benefit. A commercial rate premium may be charged or no cover offered at all in some cases. We can offer advice from a range of Insurers upon request.
We thoroughly check all prospective tenants for suitability and satisfactory references are taken prior to the tenancy commencing. It is, however, a fact that tenants' personal circumstances can change during the term of a tenancy. Should it prove necessary to pursue tenants for unpaid rent, damage or dilapidations or to regain possession of the property, legal costs will be incurred. We can provide a Homelet Legal Protection Policy to cover all legal costs up to £50,000 for a modest annual premium.
Many mainstream insurance companies will no longer cover properties which are let. A few companies will continue cover on a restrictive basis, usually with an increased premium. We must advise that failure to disclose that the property will be let will render the existing policies void if a claim has to be made. We can arrange a 'New For Old' Homelet Contents Policy specifically designed for let properties. The premiums are competitive and simply rated on the property post-code and number of bedrooms. Instant quotations are available from us.
As with the Contents, only a limited number of Companies are prepared to cover let properties and non-disclosure will often allow an existing insurer or mortgage lender to avoid a claim. We can arrange a Homelet Building Policy for properties up to £300,000 rebuilding value, rated on the property post-code and rebuilding value.
We can also provide cover for tenant’s personal possessions with an optional All Risks extension. The Legal Protection Policy is underwritten by Sun Alliance and the Contents and Buildings Policies by Cornhill.