Are you properly covered for your exposures as a landlord? Do not wait until you have a claim to find out if you are properly covered or not.
If your leasehold private dwelling (regardless if it is a house or flat), forms part of a multi-property development and it is insured under a common insurance policy for the benefit of all the residents, if you sublet your property, you need to check if your own risks as a â€œlandlordâ€ are covered by the residentsâ€™ policy.
In very much the same way that your own personal possessions will not be insured by such a block policy arrangement, the chances are that you will also not be covered for the following principle risks as a â€œlandlordâ€:
- Your loss of rent/Alternative Accommodation
- Your Public Liability Risks as a property owner
If this is the case and in these circumstances, you need to arrange your own cover should you wish to be suitably protected.
You should speak to your insurer/broker to make sure your own risks are suitably catered for and with that in mind, it may be possible to extend your contents policy to provide the necessary cover.
Understanding Alternative Accommodation Cover – Keeping it simple
Essentially, Alternative Accommodation is an insurance cover provided under property ownersâ€™ policies (you should always check your policy to make sure you have the cover and limit you need). This insurance cover is designed to give the Policyholder (being mindful of the above advice as to whether you/your leaseholder are covered), the benefit of being reimbursed for the cost of staying elsewhere whilst the private dwelling is being made habitable again following damage to the property by an insured peril e.g. Fire, Storm, Flood, Malicious Damage and the like.
Policy wordings do vary from one policy to another, but in essence, insurers will usually accept to pay the reasonable Alternative Accommodation and storage of your furniture costs when your private dwelling is unfit to live in and/or access is denied. As a guide, insurers will not normally expect to pay if you have some staining to your ceiling or your hall carpets are damp, no matter how inconvenient it may be to you until you have the damage rectified.
As with all claims/matters of this nature, you need first check with your insurer/broker what you are entitled to before you pack yourself and/or your family off to your favourite five star hotel for a couple of months!