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Cost conscious landlords urged not to take insurance risks

Landlords are becomingly increasingly cost-conscious when considering insurance deals, a new survey shows.

After research from Pi-Property Insurance indicated that 40 per cent of property managers think landlords are now more aware of the cost of their insurance and 32 per cent believe they are increasingly focused on eradicating risks, Let Insurance Services managing director Michael Portman claimed that everyone is "trying to shave costs here or there" due to the recession.

He commented: "Landlords should be aware that cheaper insurance deals could cost them more over time.

"A lot of them just focus on getting the lowest premium and, if they find the tenants have trashed the property causing massive damage, then they will end up with a bill which some insurers might not cover."

Mr Portman added that all landlords should consider insuring for damage to "the structure of the building" as well as covering themselves for other eventualities such as unpaid rent.

Last month, the Health and Safety Executive (HSE) warned landlords and property owners not to cut corners when it comes to gas installation.

HSE inspector Matthew Tackling said: "The HSE will not hesitate to prosecute landlords who fail to take their responsibilities for safety to their tenants seriously."

Quantum Risk Management is a leading Health and Safety consultant

Posted on 01/06/2009

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