As a new landlord or letting agent, you will soon find out that insuring a managed property is a completely different matter to purchasing cover for your own home. Maunder Taylor are estate agents who specialise in residential property management in and around London. Here we identify some of the extra elements which can form part of this type of policy.
Employer’s Liability Insurance
You should take this out if you are employing anyone to look after the building. Whether they are cleaners, handymen or clerical staff, as a landlord or letting agent you will need to guard against people having an accident, or suffering an illness, while they are at work. This will protect you in the event of any compensation claim. Even if staff are on short-term contracts you should still take out a policy.
Landlords’ and Common Parts Contents Insurance
While the tenant or lease-holder is usually responsible for everything inside their own living space, if you are providing a partly- or fully-furnished flat, you should ensure you have landlords’ insurance to cover any fire, flood or unexpected damage.
Also, often there are communal areas outside individual living quarters. If this isn’t already included in your landlords’ contents policy, then carpets and furnishings in halls, stairs and corridors can all be covered by a common parts contents policy.
Items which are directly attached to the property, such as baths, toilets and kitchen cupboards, shouldn’t be included in either of these types of policy. They are usually covered by your buildings insurance policy.
Directors’ and Officers’ Liability Cover
Taking out this type of insurance is a sensible precaution to take if you are a letting agent or a director of a management company which looks after a residential block. In both cases you have several legal obligations which you have to fulfil, such as:
- Ensuring the building meets all its gas safety requirements;
- That it has a valid Energy Performance Certificate;
- That all the electrical equipment functions safely and correctly;
- And that the building is properly maintained.
Having directors’ and officers’ liability cover means you will be personally protected in case there is a claim against you by a tenant – for example, they may allege that you neglected to repair the outside of the building, meaning that their flat has fallen in value.
Most standard residential block management insurance policies will cover for fire, flood, theft and vandalism. However, if the building has a lift, then you will need to make sure that it’s always in good working order.
An engineering insurance clause should pay for the cost of repairs to any damage, as well as ensuring that it is regularly inspected by an independent, qualified engineer.
Residential Property Management in London from Maunder Taylor
With all the different responsibilities that private landlords have, many opt to entrust the day-to-day operations of looking after blocks of flats to experts such as Maunder Taylor. Our high-quality residential property management services in London mean we can offer common parts contents, employers’ liability and directors and officers’ liability insurance, as well as other property-specific cover. We look after commercial and domestic properties for all types of clients, including investor landlords, freehold companies and residential management companies.
Our friendly, professional in-house team will be able to explain any unusual terms used in your policy document in plain English, and you will always have a dedicated point of contact if you have any queries.
To learn more, you can contact us by following this link and filling in the online form. You can also call our residential block management department in our Potters Bar office on 01707 665 666.