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RESIDENTIAL PROPERTY INSURANCE

Ferguson Green have access to several specialist landlords insurance schemes designed for a wide range of properties and tenant types:

Property types:

  • Single domestic properties
  • Small blocks of flats
  • Shared housing
  • Bed sits
  • Holiday homes - UK and Certain European Countries

Tenant Types:

  • Working
  • Students
  • Persons receiving housing/ disability benefit
  • Tenants supplied by the local authority
  • Asylum seekers
  • Unoccupied


Landlords should be wary when arranging cover, it is important to realise that while many policies appear similar, there can be some very important differences. 

Hidden in the small print, the cheapest insurance quotations available will normally have one thing in common, and that relates to cover for damage caused by persons legally on the premises i.e. damage by tenants. Many of the cheaper insurers will simply exclude all cover for this, although in our experience we have found this to be an invaluable section. Indeed, they often lead to repair bills behind only floods and fire damage in seriousness. 

Also, be careful of even well known brands. One of the well-known 'direct' insurers doesn't even include property owners liability or loss of rent under their standard policy.


Other sections you may wish to consider are:

Day 1 inflation protection

Protects you against large inflationary increases over a period of time. If your building is a considerable construction, it may take a great deal of time before it can be re-built. Over a period of two or three years, the original estimate for re-building cost may have increased dramatically. This cover is not always automatic to policies and should be considered. 

Loss of rent 

You can insure for rent that is lost following an insured event. For example, if your property is substantially damaged by fire, your tenant will almost certainly be able to withhold payment under a standard lease agreement until the damage is put right. As with Day 1 inflation protection, it may run into years before a property will be usable once more and cover beyond the standard 12 months should also be considered. 

Terrorism

Terrorist events are fortunately relatively infrequent, although insurers now exclude it completely from cover. Terrorism cover is available via your property insurer, underwritten through the Government initiative, 'Pool Re'. Cover is not selective however and if you require terrorism cover for a single property, Pool Re stipulate that it must also be purchased for all your properties. Terrorism cover is also available independently through certain Lloyd's underwriters, without this stipulation.

Engineering inspection  

Several types of equipment should have regular checks to ensure they do not pose a health & safety risk. Whilst most of these are not typically present in a domestic property, passenger lifts or even dumb waiters must have a regular, documented, inspection schedule. 

Employers liability 

This section is occasionally overlooked by property owners and it is the only section typically available under a property policy that is specifically required by law. If you don't employ anyone, then naturally you don't need to worry about it. Employment law however, can be quite complicated and there are many circumstances where you are considered to be the employer, even when using contractors. See https://www.gov.uk