Tag Archives: Specialist Insurance

24May 2013

Local House Fire Raises Important Reminders

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By Craig Smith

2 Property Insurance 240513

In our local newspaper this week there was a story of a family who had been awoken in the early morning hours by a fire that had started in their kitchen. Thankfully, everyone escaped unhurt and it was the kitchen that suffered most of the damage. The story itself highlights two important issues not just for homeowners but also to those in rental properties as well.

Insurance

The first is that the lady in question did not have any insurance to cover the damage caused by the fire. There are a lot of people tightening their purse strings due to the way the economy is at the moment but we cant be sure whether this is the reason in this instance. The costs of food, fuel and energy have all increased no end over the last few years so it is no wonder some people look to cut costs elsewhere.

Insurance is never an area we would recommend scrimping on as, like it has here, it can backfire dramatically. The kitchen will probably need ripping out and a complete new one going in, which is most likely to be a cost of four figures at least! Compare this to the cost of the insurance and it is easy to make a decision as to whether the insurance is worth it.

It is easy to find the right policy you need especially with the help of internet comparison sites and brokers. It is usually the responsibility of the owner or Landlord to ensure the building is covered and the tenant to cover any accidental damage.

Electrical Safety

The fire itself was started by an electric can opener that had been left switched on at the plug. This highlights the second issue of the day.

Although it may be more convenient to leave electrical goods left turned on, the fire brigade and other safety experts recommend turning them off to prevent the likelihood of fires such as this. It is also a reminder that appliances, plugs and leads should be checked for any wear, frayed edges of potential hazards. Again, we don’t know the reason why the can opener had become faulty but couple an unsafe item with lack of insurance and it could spell disaster!

Other Important Safety Factors

Lets not forget that each property should have a working smoke alarm. We still hear of so many people who have the viewpoint that it will never happen to them but it could happen to anyone! Just last year there was a fire in a property that we manage, caused by a faulty kettle of all things! It was only the fact that the smoke alarms were working correctly that the tenant was alerted so quickly, preventing the fire from getting out of hand and keeping the damage to a minimum.

18Jul 2012

Tenant Advice: Letting Agents not always responsible.

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By Steve Roulstone

Over the last couple of weeks, two incidents have occurred where we as Letting Agents have been held responsible for the effects of us doing our job. The situations were different and in both that occurred, having reviewed what we did as a Company we would have to do the same again should similar circumstances occur. But in both cases the responses we received from Tenants whilst being understandable, we felt were unreasonable when you consider we were doing as we were instructed, or in other words, just doing our job.

 Landlord instruction.

The first concerned a Landlord, who we had in the past dealt with on a Tenant find basis, and after moving a Tenant in to the property, had heard nothing more until we received a phone call asking us if we would find a replacement Tenant as the previous Tenant had now left the house. We knew we needed to inspect the house as we were aware that several improvements were planned even after the last tenant, who was fully aware of the situation, had moved in. Having gained permission to enter we found the house in poor condition, with a garden that had not been touched since the winter and a staircase in a dangerous condition because the carpet had been removed leaving many exposed nails.

Tenant reaction.

We sent a communication to the Landlord, stating we were unable to deal with his property as it was unfit (from the point of view of holding viewings) for purpose. He subsequently sent the same e-mail to his Tenant saying this is what we had said about how she had left the property. This was not the case as we had no instruction to comment as we were not managing the house and knowing what had happened before, had actually advised we fully managed the property to enable us to organise the work for him as he lived many miles away but this did not stop the Tenant calling and complaining about our comments, which resulted in a complicated explanation as to what we were commenting on and that any issues from her tenancy were between her and the Landlord, not us.

Reaction.

The Tenant was angry because what we said had been taken out of context and I do not blame her, but asked to report on a property being ready for letting, we would have to say the same again and it was the Landlord who used our e-mail incorrectly, despite having a disclaimer instructing that the content was for the recipient only. Of course this is too small a case to take action against the Landlord, but it has resulted in a breakdown of trust and a Landlord being dis-instructed.

 Insurance issues.

The second problem was bought about because of the need for a house owner to be temporarily re-housed because of recent flooding, again, a situation that is fraught with difficulties and we, knowing the position the Tenants were in, moved heaven and earth to get them re-housed as quickly as possible. But this did not stop the Insurance Company telling the Tenants that both our charges and Deposit requirements were unreasonable. 

Different Trades.

Now far be it for me to comment on current Insurances rates! But I find it a little disingenuous of them NOT to consider what we were doing for their Tenant (i.e. following their wishes) and to place doubt in the Tenants mind, who, up until this time, had no knowledge of what a Letting agent does, why and how. All this did was produce a feeling from people who had already suffered badly enough because of the poor summer weather that they were being taken advantage of when nothing could be further from the truth!

Charges.

To comment fully on Tenant charges is another Blog all together, but we know that what we charge is far from expensive and we are on the lower side of what is charged in our local market place. But frankly, that is not really what was at question. If the Tenant wanted the property we had available and with the knowledge that Insurance Companies have that charges exist when renting through an agent I am somewhat surprised that they do not make allowance and make people aware as part of the service, and of course accept their customers wishes which means they have to accept our terms and conditions, instead to use the words used by the Insurance Company, they considered that ”both the charges AND the deposit (£100 over a full month’s rent) were unreasonable”.

Unavoidable.

Of course none of this will change no matter how many times this happens and of course we have gone through this many times before and will do so again when people need to be re-housed where Insurance is being triggered, but surely Insurance Companies should be the ones to supply a ‘Rental’ fact sheet not the Letting Agent? Of course when Landlords create problems we do have the choice to take the action we did, but the point of this blog is to show that sometimes, no matter what we do as Letting Agents, we will always appear to Tenants to be acting unreasonably!

22May 2012

Property Landlord advice: Defining Landlord Insurance and matters arising.

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By Steve Roulstone.

Over the last three weeks, different issues have arisen concerning Insurance, all of which are worthy of note but not to the stage where they warrant their own blog, but they are important enough in  my opinion to be explained especially as for Landlords who are trying to deal with Insurance when renting your home, they do cause both concern and confusion.

Clarification.

There are two TV adverts that at present need clarifying, the first being the advert for Direct Line, where they mention Landlords Insurance. The reason this causes confusion and I have already had several Landlords who now believe that what Direct Line offer is a new product that they must also take, is that as an Industry, Landlords Insurance means ‘Rent and Legal Expenses’ cover. What the advert is talking about is Buildings Insurance which is for Landlords, by no means a special product, as the Insurance Companies that specialise in the Industry have been around as long as the Industry has.

Landlord spy.

The second advert, also by Direct Line, flies so much in the face of the principals which are enshrined in the law surrounding renting of property, namely ‘Peaceable Occupation’ that it is laughable. This is the one with the Landlord with a pair of binoculars. Worst than suggesting that either a Landlord would do such a thing, or that such behaviour is reasonable, is that the Tenant is shown hiding as if guilty! It is of course supposed to be a spoof, but not one that this Letting Agent sees the funny side of!

Small Print.

More important than the above which are at the best misleading, are the two real time cases that have affected Landlords of our own concerning their own Buildings Insurance cover. The first is the small print surrounding what a particular Insurance Company included insisted upon as acceptable by way of requirements for any Tenant. It was the first time we had come across this and we discovered purely because a member of our staff was very thorough in checking the Landlords documents, but in short, they insisted upon minimum earnings and hours of work per week. This opens a whole new area of concern for all Landlords, but at least we can advice all we speak to of the risk!

Reaction Time.

Secondly was a flood suffered during the recent cold spell, not by frozen pipes but by the failure of a valve. The damage, which happened between Tenants when the property was empty, also affected next door, but the reaction time in getting the property surveyed and starting to both dry out and repair, was in our opinion, the worst we have ever seen. It is difficult to know how to avoid this happening again, but I certainly feel that when looking at the cheaper end of Insurance cover, before a policy is taken with, shall we say an unusual supplier? Then ensure you have at least one reference, because we feel this Landlord has lost at least two months’ rent, which is more than the original cost of the Insurance!

Conclusion

Well the only one that springs to mind is that Insurance is a field that is going to continue to supply topics of conversation. Given the current FSA regulations, it is also one that fewer people can enter in to conversation about professionally, as we are not allowed to recommend Insurance providers ourselves, despite our daily involvement ‘in the field’. This is supposed to protect customers and ensure nobody gains financially from such advice. Perhaps the reality is that this is a short term view and that Companies in our position can actually help! But in my experience what cannot be denied is that the adverts cause more confusion than clarity.

09Aug 2011

Property Landlord advice: Landlord Insurance – when fire comes to call.

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By Steve Roulstone

The press is once again full of adverts for Landlord Insurance at the moment and apart from the fact that they mean Building Insurance for Landlords (as opposed to Landlord Insurance for Rent and Legal expenses) when this week a property we manage was involved in a fire for a second time in our Company’s History several important points were raised and although on this second occasion ours was the property next door to the one which caught fire, our systems and practises were put to the test. The fire started in a shed, but spread via the garden fence to the house and subsequently next door.

When Fire strikes.

The important point about any Building Insurance for any Landlord in a Management scenario is that the Managing Agent is aware of all the details and has copies of the policy to hand. This week we were made aware in the middle of Wednesday afternoon that a fire had broken out and quickly established that it was the neighbouring property that was being attended by the Fire Brigade. We visited site straight away, established that our Tenants were OK and started to deal with the problem without delay, because the Fire Brigade had advised us that they were unsure at that moment that they were going to be able to allow the Tenants to return that night for safety reasons. This of course presented several problems and both the Landlord and Tenants were relying on a quick reaction to sort the problem out.

Proper procedure.

This meant that we had to contact the Insurance Company and loss adjusters, confirm the policy, confirm we were able to act on the Landlords behalf, for which with a signed Landlord contract to hand, we were able to do in moments and confirm within under an hour, that should the Tenants need overnight accommodation, they were covered by the policy and made it known that the damage to our Landlords house was added to the inspection and subsequent damage costing by the loss adjuster on day one. Details of who to contact and how were sent in writing and by the end of the day (for which our staff once again have my thanks for staying until all had been dealt with and everybody advised) everybody knew where they stood and how the problem would be dealt with.

Timely reminder.

One of the big issues raised here, is the point emphasised in the current adverts that I mentioned above, because should this not have been a Landlords policy, then the insurers would not have provided accommodation for the Tenants and probably refused to cover the damage because the house was rented without their knowledge. As a Managing Agent, it is therefore important to both advise and ensure that all Landlords are aware of what they should advice their property Insurers and take out the correct policy for a rented property.

First time.

The first time we experienced was the actual property e managed and was caused by a chip pan, left unattended because of a phone call. Again thankfully nobody was injured and the correct cover and thankfully fire protection was in place and the Landlords even provided alternative accommodation for the Tenant until the property was re-built, which considering the reason for the fire in the first place, was a very responsible response. I know that the Tenant, who returned to the original home after the work was completed, has never cooked a chip at home, ever again!

Summary.

I trust we have now had our share of fire related incidents for another ten years, because the initial thought of possible injuries or casualties is something nobody wants to have to go through but without a doubt, our systems and practises came to the fore for all concerned in both instances and confirm that there is more to Residential Letting Agents than just finding a Tenant and moving people in and out of houses. Good practise and attention to detail may never be needed for individual properties, but when it is I know which side of the fence I would rather be on!

10Feb 2011

Rental Issues: Do tenants need home insurance?

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By Felicity Hannah, deputy editor at moneysupermarket.com

If you’re a tenant, do you still need home insurance or will your landlords’ cover protect your belongings? We take a look… Renting can be a trouble-free way of putting a roof over your head. No maintenance costs to meet and no housing market worries. In fact, with many rooms let on a bills-included basis, some tenants don’t even have to worry about paying anything except their rent. This can make it all too easy to forget about Home Insurance cover or to assume that the landlord’s policy will protect your possessions if disaster strikes. But in actual fact, the vast majority of tenants will need to buy their own insurance policies. So what do you need to know?

 Home insurance cover for tenants

 When people refer to ‘home insurance’, they are lumping together two different kinds of protection – contents and buildings cover. Roughly speaking, if you picture your house or flat being turned upside down and shaken, then everything that falls out would be covered by contents insurance and everything that’s attached would be protected by building insurance. Anyone with a mortgage needs to have buildings insurance as part of their agreement, so your landlord’s policy would pay out if a tree toppled into the roof, for example, or if flood waters destroyed the wiring. However, without contents insurance, your personal possessions aren’t protected from fires, floods, thieves, accidents and other disasters. 

Do I need contents insurance?

 Unlike buildings insurance, there’s no requirement for anyone to take out contents cover – but it’s essential for peace of mind. Although some cover exists that is specifically designed for tenants, for most people, a standard contents insurance policy will be perfectly suitable. Make sure you shop around for the best price but remember that different policies vary and the cheapest isn’t always the best. Be confident you can afford the excess and consider paying a bit extra for new-for-old replacement cover. That means the policy would pay to replace items with equivalent new versions at today’s prices. You can add out-of-home cover, meaning your belongings are insured when you carry them out of the house – that’s especially good for technology and jewellery. Don’t skimp on the cover you need, you don’t want to be left out of pocket in the event you have to claim. You’ll have enough on your mind if that happens without worrying about whether your policy will pay out enough.

 How much cover should I have?

 When you apply for a policy, you’ll be asked to estimate the value of your stuff. Be as thorough as you can about this, don’t leave yourself underinsured. Go from room to room and assess the worth of what’s in each. Underinsuring yourself can cause serious issues if you need to claim. If your home’s contents are worth £20,000 collectively but you only insure them for £10,000 then your insurer may only agree to pay for half your claim – even if that’s for less than £10,000.  

Will my contents insurance protect my landlord’s furniture?

 Most contents insurance policies will only protect the possessions of the policyholder and their family. However, you may want your accidental damage cover to protect any furniture that belongs to your landlord, so you can avoid losing your deposit. Check with your home insurance provider if it can provide this additional cover. Some tenant-specific policies may well be able to do so.

 What if I live with my landlord?

 A large number of tenants actually live with their landlord, renting a room in their home rather than a whole property. If you’re in that position then you may find it hard to insure just your own possessions, especially if you don’t have a lock on your door. Ask your landlord to check with their home insurer if the policy can be extended to cover you as well. If not, look at a specialist policy for tenants.

24Jan 2011

Property Landlord advice: Frozen pipes, whose responsibility?

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By Mike Edwards

Property Landlord advice: Frozen pipes, whose responsibility?

Doubtless we will suffer another bout of cold weather before this winter is finished, and indeed even as I write this the temperatures are dropping fast at night and hard frosts are a regular feature again.

So problems with frozen pipes and lack of water supply have in some areas created unprecedented calls for help (witness Northern Ireland’s woes in December) all of this has raised several important questions for Landlords.

Who arranges and pays for the Contractor?

Maintaining the supply of Water is the Landlord’s responsibility under section 11 of the Landlord and Tenant Act 1985, so he should shoulder it all, including arranging contractors. The only possible exception might be tenant negligence but there is a court case where it was held that a tenant is not required to insulate pipes, just live in the property reasonably. If there is a power cut or as was the case during December the conditions are simply exceptional, this will not be the tenant’s problem.

What happens if the tenant says “We have no running water at all” (as opposed to no heating) and tries to go for temporary absence at the Landlord’s expense or possibly early release from the agreement with no penalty. There are no easy answers and it all depends very much on circumstances.

Pipes outside which are badly designed or poorly insulated (including roofs) have to be considered by the landlord. Be careful also with self condensing boilers where the small bore evaporation pipe is external to the property there have been a lot of problems with these freezing this winter. Yes they can be defrosted with a hair dryer in about five minutes but is it reasonable to expect the tenant to go out into a blizzard armed only with a hair dryer more than once in a winter?

Council viewpoint

But what happens if the Landlord has in effect done all they can and are as much a victim of extreme conditions as the tenant – except they are not living in the property of course!! Well courtesy of the current fitness standards as dictated by HHSRS a property with no water supply for whatever reason would be condemned as not fit for human habitation by almost any Council or Court.

If the tenant considers it necessary, they could speak to the local council who will then make a decision and if they consider them homeless, have the obligation to re-house them. Let the Council decide for you – but again beware as If faced with such an obligation and related costs the Council would almost certainly send in the Environmental Health inspectors to conduct an HHSRS examination of the entire property.

Who can claim and for what?

So the system is frozen and a leak expected, if a contractor is called in can any costs be claimed? Well not by the tenant as it would be under the buildings cover but not by the Landlord either as the only insurable peril is any subsequent leak and damage.

If there is subsequent damage, the word reasonable will keep cropping up. Did the landlord act reasonably and did the tenant act reasonably? If the answer to both is “yes” then in response to the original question it will be a landlord problem to solve

The other issue to be wary of especially with tenants trying to thaw out frozen pipes in an inappropriate manner is when pipes are known to be frozen making sure that the damage is strictly minimized. Otherwise in any subsequent damage claim the insurance may be able to wriggle if they say you did not take enough care to control damage during the defrosting of the pipes especially if a professional plumber was not involved.

To minimize the problem

The best advise has got to be take advise, especially from professionals who know the law and what would happen in these circumstances, bur remember, quick action and cooperation should always be looked for before freezing problems get out of hand!

16Sep 2010

Property Landlord advice: The Importance of Landlord Insurance.

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By Steve Roulstone

 

Firstly, to explain the title, this is not House Insurance, as being advertised as Landlord Insurance by a well known Company at the moment on TV. Proper Landlord Insurance is about Insuring against loss of Rent and Legal expenses (R&L) should a Tenant fail to pay and need evicting.

Is Insurance for Rent and Legal Expenses important?

When you consider that annual policies that cover the period that Courts could take to evict Tenants from a property are available for less than £100 in today’s market, I think every Landlord should think so and I speak as a Landlord myself. When you consider that any Tenant could find themselves redundant, then taking out a policy for less than 2% of a year’s rent should not be a difficult decision.

Our duty of service to advice.

We must always ensure that as Letting Agents we stay inside the FSA regulations surrounding the selling of Insurance policies and unless we are qualified then our role is to advice Landlords that the policy is available and then let the Insurance Company sell the attributes of R&L Policies to our Landlords.

Should be common practise.

I have just found an advice line for Landlords statingthat Landlords should be careful how they select Tenants in case they cannot afford to pay the rent. No problem at face value, but if they employ the services of an agent, which they do not advice, by using professional referencing we can both ensure the Tenant is acceptable at the start of the Tenancy and because through this referencing R&L Insurance will automatically be available, providing of course the Property is fully managed, then Landlords can ensure against such problems during the Tenancy.

Managing the situation.

As I have reported in a recent Blog, Local Council Housing departments do NOT offer help and only act to delay the process of providing the Tenant with accommodation. So by having the correct Policy in place, Rent and Legal expenses which can be expensive on their own, will be covered.

Hidden advantages.

There is a valuable side effect that should not be ignored: By knowing you will not lose any rent, you can at least work with your Tenant and assist him with the Housing department. Such acceptance and assistance can only receive appreciation from the Tenant – after all, they will not want to be in this position either and human nature should ensure that the property is at least looked after during the process.