Landlords run risk of 'underinsurance'
Date posted: 29 May 2009
Landlords could be forced to pursue a court case if they do not take out adequate insurance cover, it has been claimed.
Excessive damage to property caused by tenants may not be covered under some insurance agreements, according to managing director of Let Insurance Services Michael Portman.
He urges landlords to consider other potential rental costs, such as tenants deliberately damaging properties or cultivating cannabis on site.
Landlords could be forced to pursue a court case if they do not take out adequate insurance cover, it has been claimed.
Excessive damage to property caused by tenants may not be covered under some insurance agreements, according to managing director of Let Insurance Services Michael Portman.
He urges landlords to consider other potential rental costs, such as tenants deliberately damaging properties or cultivating cannabis on site.
Mr Portman's comments follow research by Pi-Property Insurance, which revealed that 39 per cent of property managers believed landlords were making more insurance claims.
The research also found that landlords were growing more concerned about costs when seeking insurance cover.
Mr Portman said: "A lot of them [landlords] just focus on getting the lowest premium.
"Often, if there is too much malicious damage, then the deposit wouldn't be enough to cover that. They would have to go to court to claim damages against the tenant and often the tenant wouldn't have the money."
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