landlord insurence
Cutting the Cost of Landlords Insurance
Apart from agency fees and mortgage costs, the principal overheads associated with a property portfolio relate to maintenance and landlords insurance. If this sounds like we are mixing together two separate topics, then you might like to consider that maintaining your property in a good state of repair is an important factor in keeping down the costs of landlords insurance.
It is not that landlords’ insurance premiums are directly related to property condition; however there is an indirect link that can make considerable difference to you. This is because the total cost of insurance is not just the premium, but also how a claim is settled. Failing to keep your property well looked after might not directly increase your landlord insurance premiums, but insurers may not wish to cover a poorly maintained property at all. And when it comes to paying a claim, the insurance company will look carefully at the state of the property to ensure that there is no degree of “betterment” in the settlement.
In other words, if premises already needed significant repairs before they suffered fire damage, the insurance company, when considering how much it will pay out for your fire claim, would take into account the money you would have had to spend on making them good in any event.
It is no good thinking that the building will be so badly damaged that the insurance company will never know – the majority of claims are not for total loss but for partial damage so there is likely to be plenty of evidence about. And even if the premises are totally destroyed, the underwriters may well look at the balance of your portfolio for an indication of how good the level of maintenance was.
If this sounds a bit too much like “big brother” for your taste, it is worth remembering that the money insurance companies pay out in claims comes from your landlords insurance premiums, so you do not want them paying out more than necessary to other people, or you will end up paying for their largesse.
Of course, it is important to ensure that you have the right landlord insurance in the first place. For residential buy-to-let properties, a standard home insurance policy will be unsuitable, partly because there is likely to be a condition that you are occupying the premises yourself, but also because some of the covers you will require are likely to be missing.
For example, only a special landlord’s insurance policy is likely to include insurance for loss of rent and to cover the cost of re-housing a tenant following damage (this is typically up to 30% of the buildings sum insured).
Similarly, most conventional home insurance policies will not cover extended periods of unoccupancy between lets, whereas a specialist landlord’s insurance policy will be more flexible, albeit subject to some sensible precautions being taken.
Specialist landlord’s insurance policies are also likely to be more accommodating when it comes to property construction; imposing additional charges only on exceptional properties such as those constructed substantially from timber or with a thatched roof. They will also include employers’ liability insurance, which is essential if you use direct labour for cleaning, repairs and so on.
Many of the landlords associations provide insurance schemes designed especially for buy to let investors and offering enhanced benefits and reduced costs for members. For many landlords, it is worthwhile joining one of these associations simply to take advantage of the competitively priced insurance deals.
My electric is getting cut off. What can I do to get it back on?
I thought I made enough to cover my rent and bills. Then my electric company has been sending estimated bills, way more than my landlord thinks I use. On top of that they say I owe on a past due bill. I really don’t use much power. But, they wanted me to pay all of nearly $439 by the 30th. I have to get my liscense plate sticker, car insurence, food to eat, gas to go to work, pay for the phone, and I have no way to pay $439 immediatly. I gotta pay the rent, insurence, eat, and buy gasoline. Yet, I got a call that they ARE cutting off my electricity if $439 isn’t paid on or before the 30th of April. I don’t know what to do. I pay them a little per week. I figure in a few months paying weekly I could’ve paid the bill off. But, being an estimated bill (because they don’t bother getting the real reading numbers by asking the building janitor for the key to the basement to get in to write our usage down) How can I get it back on? I can’t possibly pay all of $439 now. Help?
Email a complaint to the electricity company . Say you dispute the amount on the bill. Complain till someone comes and reads the meter.say you want the power back on till an acurate bill is sorted out. Ring a welfare agancy and explain to them whats going on. They may speak to the electric company for you and help you sort it out.Go down to the basement and read the meter when you ring the company tell them to compare your reading with their estimate