We are going to look at buildings insurance for landlords with DSS tenants and how buildings insurance reflex on a DSS tenant. As a landlord, you will want to know what is necessary to protect your building and what the policy will pay out for, so here goes.
Follow the links to find out more about what this policy entails and what you need to know as a landlord with DSS tenants living at your properties.
Here is a breakdown of what your buildings insurance policy will look like, and what it will cover if you ever need to make a claim while you have a DSS tenant living there.
The buildings insurance policy will cover you if your house or flat go on fire and there is a lot of damage. If the building is totally unrepairable, the policy will pay out a total loss, claim, meaning the insurance company will pay to get your building totally rebuilt.
It is a good idea to have buildings cover when you have a DSS tenant living there because you never know what they're up to.
So there you go, that's just a few scenarios that a DSS tenant could possibly get into while they're living in your rented accommodation.
It doesn't matter whether you have a DSS tenant or somebody who is working, living in your rented property. Flooding is an act of god, but another reason to have landlord insurance would be to cover the downstairs neighbour if you are insuring a flat.
A good landlord insurance policy will cover you (the tenant) if you flood the neighbour out because that would your tenant's fault, (if the flood originated there).
If you experience a flooded apartment scenario, and when you investigate further, and it is your tenant's fault. You'll be glad you did have a landlord policy in place because you never know when you need it.
It has been known that DSS tenants do cause more problems than other sorts of tenants and that's why some mortgage companies will not accept rent guarantee insurance, which pays the rent if the tenant fails to pay it.
More information about flooded properties here.
There is absolutely nothing a DSS tenant can do regarding storms because nobody can, it's a storm, right? Lightning can badly damage the building during a storm and that's why a good landlord insurance policy will cover you for this. They have been occasions where trees have fallen through roofs and left the place in a bad condition and I really feel sorry for landlords with no insurance.
The cost to repair this is just too much, from anyone's pocket because the cost can range from £10,000 to £100,000 in damages depending on how large your home is. Flooding can be part of the storm and therefore protection needs to be in place for this as well. Flood cover is built-in to policies for landlords if you have a buildings insurance policy, which covers your rented property as a landlord.
Now when things get really bad...
When you discover that your building has subsidence problems, you put your hands over your head and say "oh my goodness." What do you do? Who do you talk to and most importantly who pays for this?
The price you pay for buildings insurance every year is well worth it when you think about these costs. If you ever get hit with a huge bill by a local builder for subsidence or structural rework, you have a problem, trust me?
It can basically mean that they need to rebuild the house and the foundations where it sits on. Getting a builder involved costs money and I mean a lot of money. That's why insurance is there in the first place because it wouldn't make sense not to have insurance in place because you would end up losing the full value of the property if you didn't have subsidence damage covered in the policy.
That's when it's worth every penny.
When you have a DSS tenant living on a property when there becomes a subsidence issue, the insurance policy will pay for alternative accommodation for your tenant until the place is back in order. They could also place them in a hotel room or put them in an alternative rented property that you own (if you have one) for a period of up to a year with some policies.
Up to a year?...
Most policies anyway, they pay for 90 days or up to 6 months, but they're all different. You need to read the policy details when you get it through the door. A better idea would be to ask the insurance company when you're on the phone to them. Making sure you have a long period of alternative accommodation cover and if you don't, use another company who does provide a long term built-in to the policy.
Right, enough about subsidence insurance...
Another good reason to have buildings insurance when there is a DSS tenant living in your property is when you discover cracks in the building between the brickwork.
This could be a sign that there is major work ahead to correct this problem or it might be something silly like old cement falling away. Anyway, whatever it is, the DSS tenant will be provided with another home while the work is going ahead.
If the builder advises you that no one can live in the property while the work is going ahead, your tenant is fine. Your insurance company should pay for an alternative rented property or a local hotel room if the work doesn't take that long.
A good policy will always keep your DSS tenants safe and make sure you keep up to date with your regulations and abide by the law.
Do you know that tree roots can cause a major problem to the structural performance of your building? Yes, tree roots are a nightmare for insurance companies because they cost millions of pounds every year to fix damaged buildings caused by the roots.
Your landlord insurance company will talk you through what's covered if tree roots get in the way. Or if a tree or two needs to be removed to save your building or prevent it from being unstable, they'll advise you on this too.
Your landlord insurance along with building insurance will cover you against tree root damage and keep your housing benefit tenant with a roof over their head.
If your building gets hit by lightning and it destroys the side of your property or the roof, your insurance company should pay you out (in most cases they will). If you have a cover for this and you should, the policy will pay for any damages caused by lightning (if this ever happens because it is very rare).
If you ever get into some renovation work and the builder hits the side of your rented building with a JCB or a 360 digger, your insurance company will claim their insurance company to recover the costs.
Accidents do happen, and when they happen, no matter who causes them - is the very reason why a good buildings insurance for landlords with DSS tenants comes in very handy.
Keeping DSS tenants safe and secure and keeping the rent money safe in your pocket.
Don't leave your rented home without one.
Now it's time to find the perfect insurance policy to cover everything we have talked about on this page. So when you're ready to find buildings insurance for landlords with DSS tenants, all you need to do is use our free and simple tools, which compares the best names in the game.
You'll be very surprised how it works for UK landlords.