What Landlords Insurance To Obtain When Tenants Are Asylum Seekers
Letting is essentially a gamble, since landlords are forced to entrust their property
to complete strangers, who may or may not be respectful of the property and who may or may not prove to be reliable. If a landlord is lucky, he or she will end up with perfect tenants who treat the property as if it were their own and consistently pay their rent on time, but the reality is landlords cannot count on luck. Let property insurance is a way for landlords to protect themselves and their property against the inherent risks that come with letting.
If you are a landlord, it is imperative that you obtain the correct kind of let property insurance to ensure you are fully protected and to avoid your insurer denying claims based on inadequate coverage or misrepresentation. Home Office statistics show there were 6,045 asylum applicants in the second quarter of 2009, up from the 5,830 in the second quarter of 2008. They have to live somewhere while their cases are reviewed, and if you end up letting your property to asylum seeker tenants, it is in your best interests to be up front about the fact when applying for insurance. Since insurance providers regard such tenants as higher risk than tenants who are employed professionals, by being upfront and obtaining the appropriate asylum seekers insurance, you can best defend yourself against potential property damage and liability issues.
Reputable insurance providers offer cost-effective asylum seekers insurance that covers what you would expect from standard landlords insurance, including your choice of building coverage, landlord contents coverage and public liability coverage.
Tenants have no legal obligation to insure the property against structural damage, meaning it is the landlord's responsibility to obtain building coverage. In the event of insurable catastrophes including a fire, lightening strike, burst pipe or malicious damage, having building coverage in place will save you from having to pay directly for any subsequent repair work and will protect you from the risk of losing your investment.
Also worth considering is coverage for contents within the property that belong to you, including bathroom fixtures, kitchen appliances, curtains, carpets and furniture if you are letting a furnished property. Regardless of whether your contents are stolen or become damaged from natural wear and tear, an accident or uncaring tenants mistreating them, over time it is likely that items within the property will need to be replaced. Contents insurance will pay the cost of replacement, hence the importance of having the security of contents coverage.
Another important optional feature available to landlords is liability coverage. Legally, landlords are required to keep their property and contents in good repair, whereas tenants are not obligated to inform their landlord if repairs are required on the property or on any contents. Liability coverage is designed to protect landlords in the event a tenant is injured as the result of a fault that is the landlord's obligation to maintain. Should your tenant blame you for an injury, having liability coverage means you will be covered against any claim the tenant subsequently makes against you.
Although landlord insurance is not mandatory, it is crucial for landlords to protect their investment wisely. That is why securing your property with the correct insurance coverage is so critical, otherwise you risk your let property costing you more money than it generates, to the point where you could end up losing your investment altogether.
by: Neil Roberts
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