National Landlords Association
How to Avoid a Potential Loss
Best Practice for Landlords
Roy Dunsford Cert CII
Property Sales Team Leader
www.landlords.org.uk
NLA Property Insurance
• Administered by Hamilton Fraser Insurance who have
been providing landlord insurance since 1995
• Dedicated in house claims team therefore maintaining
customer relationships during the claims process
• Two products designed specifically to meet the needs of
a landlord, as standard home insurance is not suitable.
Superior Cover Standard Cover -
Comprehensive cover for total peace of mind.
Developed for the price conscious landlord.
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Cannabis Farms
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•
3 Bedroom Semi Detached property
in Birmingham.
•
Raided by the Police - causing
additional damage.
•
Extensive water damage following
the use of Irrigation & Hydroponic
systems which are used to cultivate
the plants.
•
Extensive damage to the Wiring as
the Electricity meter had been
bypassed to avoid detection by the
electricity supplier.
•
Extensive structural damage –
Holes had been cut into Ceilings &
Walls for Ducting to assist with air
flow. Joists had been drilled to
support low level lighting.
Case Study
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Warning Signs
•
Blacked out windows/curtains never opened/condensation
•
Pungent odours
•
Excessive fortification
•
Tenants are evasive and avoid appointments to meet you at the premises
•
Regular visitors at unusual hours
•
Ducting / Vents protruding through windows / walls / roofs / skylights
•
Property not maintained i.e. grass is long, excessive rubbish outside the property.
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Tips to Avoid a Loss
•
Identify your tenants.
•
Obtain a written employers reference & follow that up with a phone call.
•
Obtain details of your tenants bank account – 3 months previous
statements.
•
Do not accept rent payments by cash – this cannot be traced. standing
order from the tenants bank is more secure.
•
Conduct regular inspections of your property ideally every 3 months or as
permitted in the tenancy agreement .
•
Get to know your neighbours – they are your eyes & ears.
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Fire
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•
4 Bedroom Detached property
in London.
• Vigilant neighbours spotted
Case Study
the fire and called the fire
brigade
•
Landlord alerted at 6:15 am
•
Fire quickly contained
•
Fire was started by an
electrical fault on a multi
socket extension lead
•
Heavy smoke and water
damage throughout the
property
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Tips to Avoid a Loss
•
Ensure smoke alarms are fitted and working
•
Ensure the kitchen has a fire blanket
•
Undertake an electrical inspection of the property
•
Do not permit your tenants to smoke in the property
•
Discourage use of multi-plugs and extension leads
•
Encourage tenants to unplug appliances, such as hair straighteners, computers, TV’s
•
Encourage tenants not to leave rubbish in the garden that could potentially be set alight
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Vacant Property
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• 2 Bedroom Terraced
property in Sunderland
• Property was Vacant
Case Study
following the last tenant’s
eviction.
• Property had been broken
into, all items with a residual
value were stolen - Boiler,
Copper Pipes, Radiators.
• Kitchen & Bathroom
vandalised
• Every door in the property
removed and vandalised
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Tips to Avoid a Loss
•
Weekly inspections of the property
•
Drain the water system
•
Make sure all windows and doors are locked securely
•
Ask neighbours to keep an eye on the property
•
Ensure the garden is maintained
•
Clear all mail and newspapers
•
Use timer lights to make the property look occupied
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Escape of Water
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• 6 Bedroom HMO property in
Bournemouth
• Pipe in the Top Floor
Case Study
Bathroom burst.
• Every floor below affected
as water cascaded through
the property
• Tenants did not know where
the stop cock was to
mitigate the damage
• Fire Brigade attended to
shut the water off
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Tips to Avoid a Loss
•
Maintain a minimum temperature of 12˚C
•
Keep internal doors open to allow warm air to circulate
•
In extreme conditions leave the loft hatch open
•
Check that all radiators are working correctly
•
Check pipes and tanks are adequately insulated especially in lofts or outhouses
•
Check roofs and guttering and remove any leaves or twigs which could cause water to overflow
•
Consider incentivising your tenant to leave their heating on if leaving the property vacant
•
Leave instructions of what to do in an emergency & pictures of the stop cock and its location should
the tenants need to use it.
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What to Look Out For
Does your policy cover:
•
•
•
•
Malicious Damage especially if caused by Tenants?
Theft by Tenants?
Loss of Rental Income?
Periods of Un-Occupancy?
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Do you know what you are covered for?
• Understand exactly what you are buying
• Ask Questions & read the policy carefully…
Lets have a Look
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Competitor Insight
Competitor One:
Conditions:
F Unoccupancy
It is a condition of this Policy that within 20 days of the Premises
or any part thereof becoming unoccupied, untenanted or not
having been actively used:
a. all services are to be turned off at the mains except electricity
where needed to maintain any fire or intruder alarm system in
operation and the water and heating system drained
b. the Premises are to be adequately secured against
unauthorised entry
c. at least weekly inspections are to be made of the Premises by
You or a responsible person acting on Your behalf
•Exclusion:
•G Theft and Malicious Damage by tenants and persons
•lawfully on the Premises
•Damage as defined under Contingencies 4 and 8 of Section 1 and
•Contingency 3 of Section 2 by tenants and other persons lawfully
•In Your Premises.
•Buildings Section
•4 Riot, Civil Commotion, Strikes, Labour Disturbances or
•Malicious Persons
•8 Theft or attempted theft
•Contents Section
•3 Riot, Civil Commotion, Strikes, Labour Disturbances or
•Malicious Persons
d. any accumulations of combustible materials such as junk mail
and newspapers are to be removed during each inspection
of the Premises
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Red Phone at Night.. Landlords Fright !
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Competitor Insight
Competitor Two:
4. Theft or attempted theft caused by violent
And forcible entry or exit.
Excluding
a) loss or damage by any Tenant or person
lawfully on the Property.
b) loss or damage whilst the Buildings are
Unoccupied for 30 days or more.
c) loss or damage caused by deception unless
deception is used solely to gain entry to Your
Property.
•7. Malicious damage or vandalism.
Excluding
a)loss or damage whilst the Buildings are
•Unoccupied for 30 days or more.
•b) loss or damage by any Tenant or person
•lawfully on the Property.
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Price over Cover … its Simple !!
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Landlord Checklist
What is the standard policy excess?
What is the escape of water excess?
Does your policy cover malicious
damage?
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Useful Contacts
•
NLA website
•
•
NLA Tenant Check
•
•
www.landlords.org.uk
www.nlatenantcheck.org.uk
NICEIC regulatory body for the electrical contracting industry
•
www.niceic.com
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For More Information
www.nlapropertyinsurance.org.uk
0844 980 0299
[email protected]
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