Probably not, right? According to the Money Advice Service, 84% of Britons don’t read the small print before signing a contract. Like decluttering the loft, alphabetising your DVD collection and organising your sock drawer, reading terms and conditions often falls into the ‘can’t be bothered’ category. But this can prove costly.
Even those who do read the small print often don’t understand the ‘legal speak’. We just trust that when purchasing insurance (whether landlord-specific or not), it is fit for purpose.
However, this is often not the case. Things you need to ask yourself when buying insurance include: Are you converting your property from residential to an HMO? Are you doing an extensive renovation or refurbishment? Will your property be empty for a period of time – especially overnight? Do you have a functioning letterbox but no-one in residence? Are your tenants inviting guests over? If the answer is yes to any of these questions, your insurance may not be adequate.
Of course, your tenants will most likely invite guests over… but if you have an HMO with communal space and one of those guest’s damages or, worse, steals something, you may not be able to claim – leaving you out of pocket, if it isn’t possible to identify when and how the incident occurred and claim back through the connected tenant.
Did you know that PPP has a bespoke insurance package that is specifically designed to cover the full process from purchase, through renovation and conversion, and then smoothly into renting as an HMO – all without costly administration charges or the need to change policies?
But you’re wondering about the letterbox, aren’t you? There are some landlord policies where cover is not provided if your property is empty (for example, if it’s having a refurb) and the letterbox is still accessible for use. It is deemed a potential risk that someone could post something through the letterbox that may cause damage to the property, and it would not be noticed for an extended period of time. Our advice? Board up the letterbox… or check your policy!