Forum Home Search Login Register
+  Landlord Forum
|-+  General Category
| |-+  Landlord Advice & Help
| | |-+  Empty property insurance and tenant type

Empty property insurance and tenant type

Pages: [1]
Print
Author Topic: Empty property insurance and tenant type  (Read 79 times)
Newbie
Posts: 4

I like property

« on: January 12, 2021, 12:04:05 PM »

Hi, I wonder if you can help.

Our home insurance is about to expire and as we will be leaving the property at the end of the month, renewing will no longer be applicable due to it being a standard home policy.
Do I therefore, get an empty property insurance policy. Or just wait until tenants occupy the house. It is not ready to market as yet.
I've had a look at some policies and they differ depending on whether its professionals or families, for example AXA doesn't appear to insure multiple professionals, families are fine.

Any recommendations?

I also haven't decided on which type of tenants, but if we were to go for multiple professionals then looking at the council website, we will need to apply for a license. So do I restrict my market to families to save a few quid or just apply for the license to increase market share. Would it be possible to apply for the license when I'll know for sure who I'm willing to let it to - but then i'm guessing I would fall short for serving a section21 I've been reading here.

Cheers,
George
Global Moderator
Hero Member
Posts: 3777

I like lots of things

« Reply #1 on: January 12, 2021, 12:25:11 PM »

Is this your first time letting?

For Insurance complexities I speak to a Broker. Simple policies you can do yourself... via some comparison website or Direct Line or what-have-you... but for things that appear complicated you may serve yourself best by talking to a Broker. They're people too. Their commissions aren't that bad. The worst situation for you is when you get yourself some kind of policy you think covers you, something happens, and you find out you weren't covered at all... so you've bought the useless Insurance and still have to fix whatever it was that happened.

For your ambition regarding market share (sic)... for my first question the answer drives my answer... preference must be for simplicity if you're just starting-out. Multi-professionals, where the Council requires you to have a License, is not about saving a few quid... it's about simplicity. A family is - generally - a unit... if they stay, they all stay... multi-professionals can [need to] come and go as per their job... turnover is complexity. A property that requires a License requires that not just so the Council can grab a juicy fee in return for a tick in the box (hang on, what am I saying?)... but it is also so your property is up to a certain standard... that generally meaning a higher standard (and that means cost and complexity) than a general let. Add to this your Insurance challenges and you can see I'm coming down on the side of simplicity.

Simply put.
Newbie
Posts: 4

I like property

« Reply #2 on: January 14, 2021, 11:39:42 AM »

Thanks Hippogriff.

Yes it will be a first time and I am reading your very informative guides.

What you say makes sense and I'll speak with a broker to discuss it further. Reading some of the forum posts it appears to indicate that the rent guarantee insurance may not be worth doing...

I was thinking about a family unit as we have a school that is very close to the property (not 'outstanding' rated mind you) and thought this would add further weight for a family option.
I also like to keep it simple but don't want to limit the market, being new I guess I don't know what level of response I'll get, so hard to judge right now.
The property will be of a high standard so no worries there - lets put it this way, I wouldn't market it if it wasn't a place I'd like to stay in.

Cheers again.
George

Global Moderator
Hero Member
Posts: 3777

I like lots of things

« Reply #3 on: January 15, 2021, 10:20:37 AM »

Families are better for starting-out. Sharers can be problematic. They move on, change heads and fall out. Families fall out too, but they can't really do anything about it. Suckers! We have no context to your property here, so it is hard to say whether your local not-Outstanding school would be a lure or something they shiver in disgust with... I hear that not all families have kids (certainly kids that go to school) anyway... so we can't say much other than you might be overthinking things.

Better to overthink than underthink, I suppose.
Pages: [1]
Print