Updating post from Reddit.
Hi everyone,
Next month, I’ll become a landlord for the first time, and I’m feeling a bit lost when it comes to buildings insurance.
From what I understand, my mortgage provider requires me to have buildings insurance that at least covers the full value of the mortgage. So, my current residential buildings insurance won’t be valid once I start letting the property.
I’ve done a comparison on Comparethemarket for landlord insurance (buildings cover only). The cheapest quotes I found were around £300 from ARO and Churchill.
After reading a few Reddit threads, I also came across Direct Line and GSI Insurance as recommended options.
Another important detail: I’m not a UK citizen (I don’t hold a British passport), but I am a UK resident with Indefinite Leave to Remain (ILR). However, I’m moving abroad to live and work when the letting start. Would this affect my eligibility for certain policies?
I’d really appreciate any advice or recommendations you have!
Thanks in advance!
i also use Direct Line. as far as i understand buildings insurance is a legal requirement for all landlords, whether you have a mortgage or not.
Some quick comments;
I know the two main Directors at Modus (worked with them a fair while ago). Both are solid individuals who have worked for some larger, well known companies and should be considered reliable. Note that I’m not directly involved in their type of business, so don’t deal with Modus or Acrisure in my day to day job. If you aren’t sure about an insurance business in future look them up on the FCA Register.
it is not a statutory requirement for a Landlord to hold property/Buildings insurance. Statutory (legally required) insurances you’ll be most familiar with are Employers Liability and Third Party Motor - they are there after all to protect others (people you drive into/employees injured by Employers negligence) Almost everything else is optional and driven by contractual requirements, funder/mortgage co requirements, desire to protect your asset/business or need to comply with trade body requirements.
your future residential status is very important - disclose it to all parties you are seeking quotations from. If you were operating a UK Registered BTL company it would be straightforward, but if it’s in your personal name and you’ll be resident overseas you need to make sure the insurers are comfortable with it.
They should be fine as the asset is in the UK, but how they apply the regulations/compliance processes to you might be more complicated.
Some may not wish to quote for policyholders living overseas. We’ve had to jump through extra hoops when policyholders (insuring UK Assets) are resident overseas.
Hope that helps.
That help a lot, amazing answer, thanks
Make sure you carefully read the disclosure questions and answer them honestly. As long as the property is in the UK, they will offer cover but usually will want you to have a managing agent or someone in the country to visit the property.
Research and fulfil your legal obligations as a landlord, or get a managing agent and they should do this for you. Depending on where the property is located, the obligations can be different and if it's in Scotland or Northern Ireland you'll need to be on a landlord register. If you're renting it as share house you'll need a HMO license.
Different policies will have different exclusions/endorsements and you should read through all the policy documents and make sure you're aware of them so that you don't get into strife when it's time to claim.
Goodluck.
Try Simply Business.
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