A recent case has illustrated the need for landlords to ensure their insurance cover is kept up-to-date. If not, they could be left out of pocket in the event of a claim.
According to The Independent, a recent fire claim presented to Total Landlord Insurance for almost £400,000 is going to result in a £100,000 shortfall because the landlord had under-insured the property for many years. The fire broke out in a block of flats after a tenant started cleaning car parts with petrol in the kitchen.
According to the insurer, “This is a particularly extreme and unusual case, but it does highlight the importance of ensuring that your insurance policy is sufficient to cover the full value of rebuilding the property. In the current financial climate, it is more crucial to look at the levels of cover rather than the bottom-line premium.”
Morgan Clark has helped many landlords when they have had to make an insurance claim. You can read more about their experiences by visiting our Landlords’ Insurance Claims page.