Insurance reminder for Landlords

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by Gill Montia

Landlords are being reminded to value their properties accurately for insurance purposes.

According to Steve Johnson, head of insurance at Sainsbury’s Finance, there has been a “phenomenal” rise in the value of properties held by buy-to-let investors.

Around 2.76 million properties are owned by landlords across the UK. They are currently valued at approximately £641 billion, up from £571 billion this time last year.

Mr Johnson recommends that portfolios should be reassessed every two years to avoid the risk of underinsurance.

Meanwhile Halifax General Insurance is reminding all property owners of the scale of storm damage experienced across Britain last year.

In 2007, winds of up to 77 miles per hour caused £4.5 billion worth of damage, averaging out at £2,800 per claim.

Over 1.5 million homes had their roofs damaged by high winds and the value of claims resulting from water entering properties from a hole in the roof totalled £2.5 billion.

Storm damage appears to be on the increase in the UK and Martyn Foulds, senior claims manager at Halifax Home Insurance, warns: “homeowners without adequate buildings insurance cover risk finding a huge hole blown in their finances by the cost of repairs”.