As a property owner, you should not rely on your tenant to ensure that adequate insurance cover is in place on your building. As a landlord you need to take out a property owners’ policy. This covers material damage to buildings but also your liability in the event of an accident on your property.
What sum should I insure the property for? The Sum Insured should be the replacement/rebuilding cost. In respect of buildings, the sum insured should include the cost of debris removal and architect/surveyors fees. Insurers normally recommend that this is approximately 15% of the rebuilding cost but we strongly advise you get your own professional valuation.
It is important that all sums insured should be reviewed regularly and kept up to date and also allow for inflation to avoid under insurance. Many policies do have an average clause which would apply if the sum insured declared is lower than the actual value at the time of a loss. The amount paid by an insurer for the loss would then be a proportionately reduced.
For a quote for your property, contact: Dermot Crookes