Landlords renovating rental property should consider the implications of having an empty property undergoing works and the affect this will have on landlords property insurance.
Every landlord wanting to offer top quality accommodation will want to carry out regular maintenance on their properties. The time will come however when more substantial works are required which will need the property to be unoccupied during the period of the renovation. The obvious time would be to schedule this work for when a tenant is leaving the property so it can be remarketed for rent having had the benefit of a complete refit.
Landlords insurance policies may be unsuitable during refurbishment
The existing landlords insurance policy may have a certain number of days of full cover provided as standard, after which there exclusions are applied such as the exclusion of theft, attempted theft, malicious damage, escape of water, burst pipes, trace and access. Depending on the extent and the duration of the work you may be able to complete the refurbishment works and have the property re-let before this period expires.
However, it is vital to check the policy terms before relying on this. Some policies restrict cover immediately if the property is vacated by tenants. Furthermore, if the insurer has not been advised of the works, even if they are non-structural, cover may be voided completely. It is therefore important to advise the insurer prior to commencing works on a let property so that they can agree the works planned and advise you of any cover restrictions.
Specialist insurance for property undergoing works
If you cannot secure cover for your let property during refurbishment or works, it may be necessary to purchase more specialist insurance for property renovation.
Bickers Insurance Services can provide insurance for your let property during works and when it is unoccupied, including many elements of cover excluded by other landlords’ insurance policies. Once work is complete and a new tenant moves in, you will be able to convert the unoccupied property renovation insurance into a residential landlords’ policy. This can be a far more cost effective solution than taking out short term cover for the property during works and then having to cancel and replace it with a new policy.
Call us on 01903 791340 or complete our enquiry form for a quotation