Landlords at risk from underinsurance, experts say
Underinsured properties could leave thousands of landlords out of pocket, it has been claimed.
Landlords trying to save money often skimp on their insurance premiums, according to research from LetRisks, leaving themselves at risk in the event of a claim.
Facing a shortfall in insurance payouts, landlords who struggle to make up the difference from their own funds may find themselves with empty properties and lost rental income.
LetRisks has suggested that many landlords are not aware of the potential consequences until it is too late. Others, meanwhile, believed that as the property’s market value declined their insurance cover should follow.
Michael Portman, managing director of LetRisks, said that if a landlord was found to have been insufficiently insured their provider would reduce their payments proportionally, meaning they could easily find themselves out of pocket in the event of a major event such as a fire or burglary. The level of cover offered, he claimed, should always take priority over the cost of the premium.