Make text bigger  Make text smaller  Toggle background color  Bookmark/Share

What is Landlord Insurance?


landlord insurance is an insurance policy that protects the landlord’s investment. The most obvious part of the investment is the building that is being rented to generate income. However the losses that can be caused by a lawsuit or the loss of income from a tenant can be protected by purchasing a policy that will cover those losses.

There are basically two different types of policies a landlord can buy. The first is a peril policy. A named peril policy will only cover a loss if it is specifically stated in the policy as a covered peril. If loss due to a power outage outside the building is not listed, it is not covered. The second type of policy is a comprehensive policy or open peril policy which will cover a loss unless it is specifically excluded from being covered. That means if you suffer a loss and the policy does not say it is excluded, then it is covered. It is a more comprehensive and easier to manage policy, but usually costs more money to have.

Most policies offer coverage for the building. That would include damages caused by fire, smoke, wind, lightning, hail, explosion, fire department charges, emergency removal of property, damage from vehicle, damage from an aircraft, and riot or civil commotion. Some policies will limit coverage’s to either interior or exterior, not both. You must evaluate carefully.

Endorsements are coverage’s that are added to the policy in addition to the basic coverage’s for an extra premium or charge. Some important endorsements include:

Landlord liability, medical payments, personal liability, flood, earthquake, loss assessment, vandalism, and business property. If your policy does not list these coverage’s on the declarations page, chances are you are self insuring. In other words, you have no coverage.

Landlord liability is probably the second most important coverage after the building. Landlord liability protects the landlord from lawsuits arising from damages to the tenant or other person who is injured on the property. Injury does not necessarily have to be physical; it can be emotional such as libel, slander, and discrimination. Liability coverage will usually cover legal expenses and damages if awarded. This protects the landlord from having to pay the injured party should they win in court. It will count as a claim which could make it more difficult to get favorable rates for several years.

Most landlord policies cover the building on either a replacement cost or actual cash value policy. Replacement cost coverage will not take into account depreciation when paying on a claim which makes it the more expensive option. If a building is now worth $65,000 because it is old, a replacement policy will pay to build the same building at whatever that would cost today. An actual cash value pays the amount the building or property is worth, minus depreciation. That means you may have to pay out of pocket to have a similar home rebuilt. Changes in code also has to be considered such as updating a fuse box, that will probably have to be added to the policy and will cover an additional 10% of the building coverage amount.

Increasing deductibles are one of the easiest ways to reduce premiums without having to give up on important coverage’s. Deductibles are a way of self insuring for a portion of the claim. If a claim amount is $10,000 and you have a deductible of $1,000, you pay the first $1,000 and the company pays the rest if it is covered. Deductibles range from $100 to 5% of the coverage A amount, or the building coverage. The decision is simple, the higher the deductible then the lower the premium will be.

Landlord policies do not cover renters. The renter should be required to purchase their own insurance policy. Renters insurance covers their property and can also cover the landlord if they caused a loss such as a fire to the building or someone being injured due to the tenant’s negligence. Anyone can sue anyone for anything. Having a renter purchase a policy and include you as an additional insured can protect you from having a claim paid by your policy when the tenant was at fault. That is call subrogating.

Vacant properties are a very difficult situation to deal with from a landlord position and from the insurance company’s position. A vacant property does not provide income and it also stands to be at risk for things like vandalism, negligence, basic deterioration. A vacant home is a property that is used for showing to potential buyers or renters. It can not be intended to be demolished, under repair, restoration, or remodeling.

A vacant home under renovation is not considered the same as a vacant property. Few companies will insure a home that is vacant and currently being remodeled or “fixed up”. Fix up work includes painting, wood repair, installing new carpet, installing curtains, etc. A vacancy warranty clause states that a home is not undergoing renovation and will cause an insurance company to deny the claim unless they are insured under a vacant renovation policy.

Vacant homes are also limited by the amount of time they can be vacant. Policies will differ from 3 months to indefinite. Most companies will allow a home to be vacant for 6 or 12 months (depending on the company) and will not insure the property if it has been vacant for longer than 12 months. Usually a vacant home will have to be for sale and be a secondary property to qualify for coverage. Few companies specialize in vacant homes and will insure them indefinitely as long as the warranty clause (home is in a condition that is can be shown to potential buyers or renters) is being honored.

Building coverage amounts also affect eligibility for coverage. Some companies will not insure a vacant home over $250,000 while some will not consider the property unless it is worth $250,000. Limits are also to be considered as some stop at $1,000,000 while others will insure the property to the highest limit needed.

Another option to consider when looking to insure your rental home is that some companies will allow you to add the property to your existing home owners insurance policy. That has advantages and disadvantages. The advantages are a multi-policy discount and having one agent or company to deal with. The disadvantages are limited coverage depending on the company and a claim will count against your homeowner’s insurance policy. Any claim will raise your rates and could make it difficult to purchase insurance at all.

To evaluate your options and decide which coverage is right for you please visit our website at http://www.getgliga.com or call us at 888-GET-GLIGA. Ask for Don.

Posted
October 10th, 2011

Filed
Landlords Insurance

Tagged

No Comments

Insurance Protects Both Owners and Tenants from Huge Losses


Insuring rental property is crucial for real estate investors and just as essential for lessees who own valuable goods that would cost thousands to replace. Both real estate investors and tenants can be sued for medical payments if someone is injured on their property, whether inside or outside. Sudden accidents such as high winds that shatter windows, plumbing problems that instigate water damage or burglaries that happen due to lax security measures affect not merely the landlord who has to repair the damaged building, but also the lessees whose property has been stolen or destroyed. landlord insurance does not cover a lessee’s personal property.

Renters Insurance Coverage is Low-Priced Compared to Homeowners Insurance

Renters insurance affords lessees so much protection for so small an investment, it is wise to have it. In addition to covering the replacement cost or actual cash value of everything inside the rental residence, renters insurance offers liability coverage for guest injuries, property coverage away from home, plus living expenses when the renters cannot reside in their leased property during repairs.

While renters insurance usually is priced at between $15 and $35 a month, depending on the lessee’s property, optional coverage and deductible, renters can save by selecting renters insurance from the company that supplies their car or life insurance. Lower premiums usually come with higher deductibles, which in reality benefits lessees. Renters should use their insurance only for major losses, since every claim carries the potential for higher premium adjustments.

Tenants should document their goods diligently to ensure that they buy ample renters insurance, and maintain their receipts in a fireproof safe, in their automobiles or in another secure place away from home.

Landlords Require Insurance to Deal with Various Risks

landlord insurance policies vary widely, from simple “named peril” policies to comprehensive or “all-risk” insurance policies. Since annually one out of every three landlords is sued, plenty of coverage is paramount. Whether coverage is restricted to specified risks or includes every risk not specifically excluded in the policy, landlord insurance applies to storm damage to the building and any of the landlord’s fixtures and appliances inside the units. Premiums depend on quite a few factors, from the building’s construction to its tenants, and optional coverage makes premiums increase but offers necessary protection.

Optional coverage can include shielding from loss of rents, landlord liability that covers legal defense expenses and medical payments, coverage for theft or vandalism, earthquake coverage, flood insurance and Replacement Cost coverage, which pays far more than an ordinary Actual Cash Value policy that subtracts depreciation. Landlords can reduce their premiums by accepting a higher deductible, not allowing pets or holding on to excellent lessees. The increase in lawsuits over toxic black mold has many insurers dropping mold coverage or making it an expensive option, which may still be essential if the leased property is older or located in one of the many states prone to mold.

Rental property owners should realize just what their policy covers, what it excludes, and how to file a claim. They also should take photos or videotape their property, take inventory of what they own inside the units, and maintain excellent records of tenant communications. Keeping the property clean and secure can prevent negligence lawsuits, so real estate investors should make important repairs immediately. Owners also should inform their insurance agent or their insurance company’s claims hotline as soon as a covered incident takes place.

Posted
September 26th, 2011

Filed
Landlords Insurance

Tagged

No Comments

How to Protect Your Student Buy To Let Investment


The buy-to-let market has undergone something of a renaissance in recent years (because first-time-buyers now have to find significant deposits in order to get on the housing ladder). However, over the longer term, letting to students in university towns has often been considered a safe option for landlords. Evidence from the Halifax also suggests that letting in university towns is very profitable as house price rises in these towns has out performed those in other areas.

Some landlords might react adversely, based on the fear that student tenants can be irresponsible and thus unreliable as tenants, but in practice this need not be the case, particularly where a landlord can become known to the university accommodation office as a good landlord. This is actually one of the best ways to find tenants, because the university can act as a central clearing house for first years and others who are not necessarily familiar with the area.

In fact, students can be good tenants because you know they are with you for a fixed period, usually early September to June, although some may reserve accommodation as early as August, if they are “freshers” (first year students). A landlord will need to provide basic furnishing including: a bed and desk (and hopefully a chair) but other than that there are few restrictions.

Things for a landlord to understand There are several factors that need to be considered. In particular, landlords cannot expect a full twelve-month let, so you need to calculate your rent on the basis of nine months of the year. Conversely, this will leave a landlord the summer to do any repairs and re-decoration and you might even be able to do a deal with the University to provide summer school accommodation.

Landlords also need to be aware that students, away from home for the first time, are likely to be as untidy and disrespectful of other people’s property as they were at home, so a higher degree of dilapidation than in other letting situations may be possible. This could impact on relationships with neighbours; unless they are also letting to students. One other issue; is that while the “sign-up” period might be relatively short at the start of each academic year, there can be a “move round” after a few months as some find it difficult to mix with their house- or flat-mates and form new friendships. So it could be worthwhile keeping your listing current with the university and on any websites you use, to “sweep up” any swaps. Landlords that do decide to let to students should ensure that they get a guarantor for the letting this will protect the landlord from what ever the tenant hordes throw at them.

Finding the right property owners’ insurance Finally, there is also the issue of landlords insurance. Not all insurance companies are keen on student tenants and they may impose higher excesses or charge higher premiums where students are involved. It is absolutely essential to ensure that a landlords property insurer is fully aware of the position if you let to students. This is because many insurers consider that the type of tenant to be a “material fact”. This means that if there is a claim and you have not disclosed this, they can quite legitimately seek to repudiate a claim.

Alternative lettings If a landlord is interested in this area of letting, because of the availability of large numbers of potential tenants but are not fully committed to having your property full of undergraduates, a landlord might consider the alternative of having post graduate tenants, student nurses or junior doctors as tenants. They tend to be slightly older and may well be for the longer term because the training can take quite a long time. Also, they may be less inclined to keep moving each year, as student tenants.

Professional advice for all your property owners’ insurance needs Ensuring that you have the right landlord’s insurance is essential if you are to be properly protected. Always ask your insurance advisers what experience they have of dealing in this specialised sector.

Posted
September 5th, 2011

Filed
Landlords Insurance

Tagged

No Comments

Landlords Insurace – A Simple Guide to Landlords Cover


When the time comes to buy insurance for your rented properties, you have to think about more than just the building. Unlike normal home insurance, landlords must consider health and safety, and as if looking after the property isn’t enough, there are also people to protect – both yourself and your tenants. All landlords need to protect themselves against possible legal action following an accident, injury or even fatality on their property.

A good landlords insurance company will protect all the necessary people and properties with the following cover:

Contents insurance

If you let your property in a furnished state, you need to be sure that you can replace items, should they be lost, stolen or broken.
A good insurer will cover contents on a new for old basis, with cover ranging from £5000 to £50000 and including the furniture and carpets.
However, the belongings of your tenants are unlikely to be included in this cover.

Liability insurance

The Association of Residential Lettings Agents (ARLA) say that claims for personal injury have risen by 85% since last year. With compensation of over £100,000 becoming the norm, decent liability cover is a key element of landlords insurance which landlords must have.

If buildings insurance is included, good liability cover provides cover of between £2m and £5m.

Buildings insurance

Another key element to check is that your buildings insurance covers the cost of fully rebuilding your property – especially since ARLA estimates that up to 40% of properties are under insured.
The level of cover you need will depend entirely on the potential costs of structural repairs on your property.

Accidental damage insurance

You can also be covered in case your tenants (or other parties) cause accidental harm to your property. After all, accidents happen.

Loss of rent insurance

Finally, it’s all very well being covered for your building and everything in it, but if you do need to carry out major repairs, the tenants won’t be able to live there, and that means no rent. However, all is not lost! You can be covered for up to 20% of the buildings sum insured so you can rest assured that you won’t lose that income.
A decent insurer will also provide different accommodation for your tenants while you make your property habitable.

Landlords Insurance is available at simple landlords insurance (http://www.simplelandlordsinsurance.com)

Posted
September 5th, 2011

Filed
Landlords Insurance

No Comments

Landlords Building Insurance – How Do You Get Protected?


Safeguard your house from any damage that occurs accidentally. landlords building insurance protects you from any kind of damage to your building. Landlord experts online will guide you through your process of getting an insurance. Firstly, try and understand the various types of insurance related to your property and then what it entails.

landlord building insurance is also indispensable to rebuild the value of your building and not the sale price which is usually higher. Your insurer will only pay out a maximum amount of what the building costs to rebuild the structure. It perseveres to put you back, in the earlier position, so that you retain the same financial position you were in before.

Landlord Building Insurance

landlord content insurance

landlord rent guarantee insurance

Landlord buy to let insurance

landlord property insurance

While a landlord building insurance covers up any damage to your building, content insurance covers the items in the building. All items that you own in the property, which does not include your tenants’ items, but the landlord’s content which may become damaged such as tables, sofas, carpets, chairs and pictures. You may have all of these items in place, if you are renting out a furnished building. Multiple types of tenants and communal areas can also be covered under this. If a tenant has to insure his own belongings in the house, he has to get a different insurance done. Find the Insurance company that will provide the best combination of cover and premiums for the ‘group’.

All content and building insurance is arranged and underwritten by leading insurers and is designed specifically for the letting market. A rent guarantee insurance will protect your rent payments on a regular basis, incase a tenant stops his rent payments. Secure a cheap insurance quotation and insure your building without having to spend much time looking out for information online, and avoid long waits to get to know your competitive insurance quote. You can save the costs of redoing the whole structure, in case of any damage due to natural calamity. Reach out to an insurer who can deal with all your claims as quickly as possible.

Building Insurance of Landlord covers the following:

Any accidental damage

Incase you lose out on rent or alternative accommodation

Replacement locks too

Property owners liability

Get an amount of up to £500,000 sum insured

Compare various landlord insurance quotes in Uk’s competitive market.

Posted
September 4th, 2011

Filed
Landlords Insurance

Tagged

No Comments

A guide to renting out your second home: What you need to know when renting by yourself


It is not surprising that people want to rent out their second home because it is a great business which people take advantage of to make some extra money. Sometimes,you can gain a large steady income even more than the cost of the mortgage. But it seems that it doesn’t happen to everyone. Not all of them are successful. Frankly speaking,it’s not easy to be a successful landlord. If you want your small business to be profitable and productive,you need a guide.

Before your start this business you need to know the risk of the letting. Since you’re the owner of the property,you’re responsible for the maintenance and repairs of the place. The costs can take an unwelcome bite out of your budget. It would be

worse if you can’t find any tenants, you will lose your money.

Now if you’re still interested in being a landlord, here are some landlord tips to help you to be a successful landlord.

1.Learning the landlord-tenant laws in your area. You need to educate yourself thoroughly on landlord’s rights and responsibilities,including federal and state laws, exercise particular caution when it comes to rental agreements. The more you know, the better. This help you a lot when you run this business.

2.Buy landlord insurance. Landlord insurance serves to protect landlords during circumstances where they are prevented from using their property to earn an income.

You need to purchase landlords insurance to protect your investment. Not all insurance policies are the same.The basic insurance should cover all types of accidental losses,such as fire,wind or explosion.This can help protect you from devastating losses.

3.Take real estate tax planning.Although the income that we earn from being a landlord is subject to federal and state income taxes,tax planning of rental property still help us open up many opportunities to deduct considerable tax.

You have the right to take a tax deduction for rental expenses on your tax return.Technically, you can deduct any expense reasonably necessary to manage or maintain the property. Obviously,the deductions can include mortgage payments, insurance premiums, service payments, maintenance, repairs, cleaning expenses and so on.

4.Screen tenants. Choosing tenants is the most important.It is said that landlord’s biggest trouble is not managing and maintaining their rental properties, but handling problem tenants. Your sensible choice can help you avoid fair housing complaints and lawsuits.You need to check your potential tenant

Posted
August 18th, 2011

Filed
Landlords Insurance

No Comments

Securing Your Property With A Landlords Insurance


Renting out a property has proven to be one of the most profitable investments in the last decade. The risks associated with poorly behaved or unconcerned tenants make rental properties an investment that is fraught with risk and this is complicated by the lack of risk cover available on the market. landlords insurance that does the job and protects investors from the risks posed by propery investment and is essential to maintain profitability.

Even with a damages deposit, when a tenant vacates a property the landlord may still be left with a large bill to put the property back into letting condition for any future tenant. A security deposit may be as much as two or three months rent, but this may not cover the cost of a new bathroom or a new kitchen that has to be replaced or even a basic redecoration and replacement carpets beyond normal wear and tear.

Many tenants carry no insurance of their own, safe in the knowledge that the landlord must by law cover risks associated with maintaining the property in habitable condition. If a property defect causes any injury to a tenant, for instance tripping over loose carpet on the stairs, then it makes sense to a tenant to sue the landlord for damages and there are numerous judgements in favour of tenants just for this sort of situation.

insurance for landlords has developed in leaps and bounds over the last decade as the buy to let market has matured. Settlements and awards in favour of tenants have become financially viable for lawyers to pursue because there is an investment property that can be attacked to release payments for damages. Insuring the property is not just about protecting it from fire and theft but unscrupulous claims that can be very costly to defend.

The real value of an insurance policy is not the cost of the premium but the ability and record of the company to settle any claims. Investors need to remember that every week that passes by with a claim unsettled is another week of lost income while the associated mortgage costs still have got to be met. You need to pay very close attention to the claims record of your insurer and how well they handle claims, including whether you need to pay out the costs of works from your own funds before you are reimbursed when considering who to use as your insurer.

You need to look very carefully at the various factors that apply to a landlords insurance policy. Make sure that the cover that is offered by a policy provider is adequate to meet your needs and any possible claims by your tenants. The premium may be fantastic, but you really need to get to grips with how well they are going to handle any claim that may arise in the future or risk losing your hard earned investment waiting for paper pushers to make a decision.

The most obvious aspect of insuring your investment property is the condition and risk factors that affect the physical property itself. Too often, not enough consideration is paid to the incoming tenants who are trusted with your investment on a daily basis and may not have your hard earned property investment too high on their own list of priorities.

Closely scrutinise any policy documentation and take pains to compare like with like when choosing your insurer and policy. Do not settle for second best when it comes to insuring your buy-to-let property and remember, you are not just insuring bricks and mortar but your own financial security.

Posted
August 9th, 2011

Filed
Landlords Insurance

No Comments

Landlord Property Services


Your land lord property services offered online gives comprehensive coverage including a number of real estate services. Landlord property services include landlord insurance, landlords building insurance, landlord contents insurance, Energy Performance certificate, Home Information Pack.

Fire, smoke, airline and automobile impact, and hail are all standard causes of damage to the structural integrity of a building, and generally, insurance policies for landlord liability cover these things. You safeguard your building with the help of an extensive insurance coverage. You don’t have to rebuild any thing from scratch, if there’s any catastrophe.

Get protected from any loss of capital investment. In addition to this, you protect the income you earn through your rent. Landlord insurance covers all those that you as an owner actually own: the fixtures in the rooms, the staircase, the elevator, and other such things are covered by this sort of insurance.

Building insurance for landlord rates vary depending on different factors such as the property location, rebuild value and the tenant type. You can avail a lower insurance premium, if you have a low rebuild value. Based on the location of your area, whether it is high crime prone area or low crime prone area, your rebuild value differs based on this. Request for a quote online, carefully read your quote and other key facts before proceeding with any cover

Carefully read your full quotation and other key facts before proceeding with any cover. Many landlords add contents to their buildings insurance policy for a small additional premium. Seek out a landlord content insurance to protect your content and get covered for damage to items such as floor coverings, curtains and any electrical appliances you have supplied, Fixtures & Fittings: Kitchens, bathrooms, radiators, fitted carpets & laminate flooring etc.

How to manage rental property effectively (and applying that knowledge) are the key ingredients for developing a rental property business that operates smoothly with maximum cash flow. Learn from the experts how to get the maximum benefits without interrupting your rental cash flow; get your self a rent guarantee insurance. With the help of landlord property services, get your self real estate management maintenance service. Just in case, if the tenant tends to utilize the resources provided by the real estate management team for a longer duration than that specified, the owner can ask the tenant to pay extra charges for that resource. Reach out to the Landlord Property Services providers.

Posted
July 19th, 2011

Filed
Landlords Insurance

Tagged

No Comments

Landlords Insurance is Just a Few Simple Steps.


I do not know exactly what comes in your mind with the mention of the word landlords insurances but if you are thinking like me, then you are absolutely right. Buy- to- let insurance is an arrangement of covers put together by insurers to provide landlords with the indispensable components to ensure that their investment is adequately secluded.

All types of property-owners require landlord insurance for their properties, ranging fro m the landlord who possess a particular small flat, to the industrialist who controls a huge assortment of property. Off course the likelihood of vast and therefore significant amount of capital is coupled in the property, and that a certain amount of income is expected out of the use of that property is high. Landlord insurance protects you against losing your capital investment, and can also be of assistance to protect the income you receive through your tenants paying rent.

In this paragraph henceforth I will concentrate on summing up the typical insurance covers model which makes up a landlords insurance policy. The building itself (which is the property insured), is protected against most risks such as flood and fire for the entire cost of repair or rebuilding. It is imperative to consider that when you affirm the worth of your property you are in reality approximating the cost of renovation should it be totally destroyed-total loss. A good number of insurance companies put forth out a rate to charge the landlord based on the site of the property and then apply it to the Buildings Sum Insured.

It is by the same token imperative to ensure that you do not miscalculate the cost of upgrading your property. If you have been paying a lower premium by miscalculating the Buildings Sum Insured, then the insurer will normally only pay your claims up to the section of the building that you have insured. It is important not to be caught out by this by being tempted by lower premiums for lower Buildings Sum Insured.

For a landlords insurance policy ,when an insurer talks about insuring contents they are not talking about the tenants contents, because the tenants have a responsibility of protecting their property by purchasing a policy to secure them. The contents that you can insure are items that you own in the property but which may become spoiled such as carpets, all sorts of furniture and pictures if you are renting the property as furnished.

Landlord Liability is the next thing in the landlord insurance policy model. As a landlord you are accountable for the protection of the property that your tenants are living in. This then translates that, should a tenant harm themselves due to something hazardous in the property they can make a claim against you for compensation. A tenant may electrocute themselves on a faulty light switch and badly burn their hand as a result and this is a base enough to sue you as their landlord. The Landlord Liability cover will pay for any damages that are granted to the tenant as well as all legal costs.

Poly Muthumbi is a Web Administrator and Has Been Researching and Reporting on Debt for Years. For More Information Visit Her Site at LANDLORDS INSURANCE

Posted
July 2nd, 2011

Filed
Landlords Insurance

Tagged

No Comments

Commercial Insurance – Get it Right or Risk Everything


If you own a business there is every chance you will try your very best to make sure it is run in the correct way. From employing the right staff to what service providers to use, you are faced with decisions at every turn to make sure your business runs smoothly and hassle free.

The trouble with running a business (and indeed life in general) is that the unexpected often happens and as a business owner it is your responsibility that if the unexpected does happen your business isn’t affected too much.

And that is where buying commercial insurance for your business is so important.

Here are just a few examples of things that can happen to businesses and what might happen in the event of no insurance, the wrong insurance and right commercial insurance being in place.

landlord building insurance Claim

You are a property owner with a portfolio of house, flats, apartments and commercial property. You have decided that the chances of anything happening to your new block of flats is pretty remote as they are currently empty so you have decided to either not insure them or you have not got around to telling your insurance broker.

Over the weekend your newly built and decorated flats are broken into and the brand new kitchen and bathroom suites are ripped out and stolen.

What happens now?

1. With no insurance you basically have to pay for everything
2. If you did actually get around to getting the flats insured but decided to exclude theft cover (what with no tenants and no furniture you may have done this to save some money). As the damage caused was as a direct result of theft then once again it is possible the damage costs will have to met by you
3. If you have correct level of landlord building insurance in place you ring your insurance broker, they hopefully sort the repairs and replacement of items with your insurance company and the flats are restored to their original state leaving you with just a small excess (or deductable to pay).

So for the sake of a relatively small landlord insurance premium you could be left with a bill for hundreds or thousands of pounds. Hardly worth the risk right?

So maybe you are thinking that if your have a portfolio of properties you would definitely make sure they are covered. What about if you just have one though and money is tight? There is every chance you might take the risk and either have no insurance or insurance that does not meet your needs.

People and businesses do it all the time. When money is tight a service like insurance is often the first thing to be sacrificed.

It maybe that you have just forgotten to renew your commercial property insurance or business insurance policy. With so many other things to think about that could easily happen.

Here is another example of a claim that could be made against you. You own a small business and need commercial property insurance for your factory. You know by law that employers liability insurance is needed so you always make sure this is in place. What about the factory though? The staff are all experienced, you have an alarm and people know what they should be doing (and more importantly what they shouldn’t be doing). The risk seems pretty low so when a fire happens overnight you are left with the following scenarios:

1. With no insurance your business is potentially destroyed as the burden of starting all over again is with you
2. You actually just renewed your commercial combined insurance policy so you are covered. Well done. However to make your premium cheaper you decided on a very big excess (or deductable) and you decided against business interruption insurance. The result being that you are left in a position without the correct needed for your business to recover.
3. You got advice from your insurance broker, they discussed the cover you really need and they made sure your excess was at a sensible and affordable figure. The result is they act to make sure you get a interim payment on the claim and that your business continues, just for the sake of a small premium and excess.

Most people do not like insurance but for any business owner, business manager or person responsible for making sure the business is protection it really is a vital purchase.

Get the right business insurance cover and if a loss occurs you will know the business is in safe hands. Risk having no commercial insurance or not getting the right business insurance cover can leave you and your business with nowhere to turn. Is it worth the risk?

Posted
May 31st, 2011

Filed
Landlords Insurance

Tagged

No Comments

« Older Entries
Newer Entries »

Pages

Categories

Blogroll

Search