At EBM RentCover we empower landlords, property professionals and tenants with the tools and knowledge needed to confidently apply for and manage their insurance.
We don’t want our clients to find out they are not properly covered so we have answered some frequently asked questions about taking out or renewing a policy:
What does sum insured mean?
The sum insured is ultimately the maximum amount your insurer will pay for a claim. You determine and tell us the sum insured at the time of application and it is the full cost to rebuild your home in the event of a total loss.
How do I work out the sum insured (or the current replacement cost) for my building?
To ensure you are not left out-of-pocket if the structure is significantly damaged or destroyed, make sure you base your insurance on the current building replacement cost. This is not market value, but the current cost of building the same premises again. This value needs to reflect the costs involved in restoring the property to its existing condition, taking into account current building standards and codes, and also factoring in rising costs due to inflation, material costs and labour. To get an accurate estimate of replacement costs, talk to a quantity surveyor or builder, contact the bank that holds the mortgage, or check an online building replacement calculator.
TIP: If you have made any renovations, alterations or additions to the home, these should be factored into the sum insured.
How do I work out the value of my contents?
Do a room-by-room inventory, documenting all goods you own in the rental and their estimated replacement cost. The total should form the basis for the contents sum insured. Tenants should do this also for their renters’ contents insurance.
What if I have added to my belongings?
It is important to keep track of and update your contents insurance to include new belongings. This does not only apply to major purchases such as whitegoods or furniture, but also to smaller items such as linen, crockery, soft furnishings and entertainment systems. It is particularly important for landlords offering short-term accommodation (holiday lets and Airbnb accommodation), or providing fully furnished fixed-term rentals. By updating your insurance with new belongings, you can have peace of mind knowing it is protected from insured events under your policy.
Do any items need to be specified in the policy?
Contents policies have set limits for claims (total value insured) and also certain items like jewellery, watches and collectables are only insured to a certain amount (sub-limits). High-value items, or any that exceed the set limits, need to be specified and may require a separate, specialised policy (our colleagues at EBM can arrange cover).
Does the way I lease the property affect my policy type?
There are different policies for the different ways rentals are let (for example, fixed-term or short-stay) and it’s important to choose the right type of cover. If the type of lease has changed, it is imperative the type of insurance policy is changed too – different policies suit different situations and landlords may find themselves inadequately insured.
At EBM RentCover we offer more than landlord insurance – we offer proactive customer service and support. We’re here to help ensure the policy you purchase suits your needs, so chat to our team if you need advice.
Now you have a better understanding about landlord insurance, check out the EBM RentCover range of products to find suitable protection for your property.
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