LONDON, June 1, 2016 /PRNewswire/ -- With approximately one of every five residential dwellings in Britain being owned by private investors, fueled in no small part by the housing boom of 2005 – 2007, much of the country's savings and retirement capital is tied up in buy-to-let investments. According to research conducted by online insurance comparison service Quotiva.co.uk, many landlords are failing to safeguard the properties which may be the difference between a comfortable retirement and financial uncertainty.
"If you don't have landlord's insurance you're in a potentially disastrous situation," says a spokesperson for Quotiva.co.uk. "We've found that as many as one in seven residential investment dwellings does not have adequate insurance. Oftentimes this is based on not understanding the reasons for landlord's insurance, or simply not being aware of the risks."
Landlord's insurance is not compulsory in the UK, but provides important increased coverage for investors and tenants alike. Policies will often include accommodation for tenants in the event of fire or natural disaster, while offering coverage to the owner for unpaid rent. Likewise, while not covering tenant's belongings, it will offer resolution in the event of accidental damage to the property by the tenant.
With the advent of Airbnb and other services, tenants are subletting the property for extra cash when they go on holiday. While there are many examples of landlords catching tenants out, there are equally as many stories of tenants breaching their rental contract by subletting and exposing the property to potential damage. Landlord's insurance will cover not only theft, but also assist with legal costs in the event matters go to court.
The insurance comparison website recommends landlords ask their insurer what they're covered for, and what additional coverage they should consider. Standard insurance may have restrictive clauses relating to tenants within the policy. "You've got to be open and honest with your insurer," says Quotiva.co.uk. "In the end it all comes down to your personal circumstances, but you've got to know the details of your policy, what you're covered for and were you're potentially exposed."
To learn more, please visit: http://www.Quotiva.co.uk
Quotiva.co.uk are a leading insurance comparison website, comparing various niche insurance products to find the best deal.
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