UK rented homes underinsured by £315 billion
Landlords struggling in the wake of COVID-19 face another invisible threat in the form of underinsurance.
The latest data from RebuildCostASSESSMENT.com reveals a massive shortfall in cover among rented homes and business properties. The insurance valuation providers estimate that privately rented homes in Britain could be underinsured by a whopping £315 billion, while for UK commercial property, the estimated underinsurance total is around £325 billion.
“What this means is buildings across the country are woefully under-protected in the event of any kind of damage,” said Will Molland BSc MCIOB AssocRICS, director at Rebuild Cost Assessment Ltd. “I fear that in the current financial climate many landlords simply would not survive the consequences of underinsurance.”
Will went on to explain that nine out of 10 properties in the UK are insured for the wrong amount. The vast majority (79%) are underinsured, which means that when a claim is made, the amount paid out to cover the damage can be severely reduced.
“We’ve recently seen with the situation around business interruption cover that insurance contracts can lead to confusion. Underinsurance often leads to disputes with insurers. On average, we find that buildings are only covered for 69% of the amount they should be, leading to a considerable shortfall in cover.”
Will added: “Now is not the time for anyone to discover their insurance policy won’t pay out the amount they’re expecting. This is a UK wide problem and it can only be resolved by landlords realising the risk they’re running and then making sure their buildings are insured for the right amount.”
RebuildCostASSESSMENT.com has recently produced an infographic highlighting its latest data around inaccurate buildings insurance, based on more than 11,000 property assessments over the past 12 months. It can be viewed and downloaded here.
We have partnered with property experts Hamilton Fraser Total Landlord Insurance to provide you with a webinar on ‘How to avoid underinsurance’ which will cover everything you need to know on the topic, from calculating your rebuild value to the true cost of underinsuring – look out for the webinar which will be going live on the 16 November 2020. Viewers will have exclusive access to a RebuildCostASSESSMENT.com discount code.
©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – UK rented homes underinsured by £315 billion | LandlordZONE.
View Full Article: UK rented homes underinsured by £315 billion
Post comment
Categories
- Landlords (19)
- Real Estate (9)
- Renewables & Green Issues (1)
- Rental Property Investment (1)
- Tenants (21)
- Uncategorized (11,916)
Archives
- December 2024 (43)
- November 2024 (64)
- October 2024 (82)
- September 2024 (69)
- August 2024 (55)
- July 2024 (64)
- June 2024 (54)
- May 2024 (73)
- April 2024 (59)
- March 2024 (49)
- February 2024 (57)
- January 2024 (58)
- December 2023 (56)
- November 2023 (59)
- October 2023 (67)
- September 2023 (136)
- August 2023 (131)
- July 2023 (129)
- June 2023 (128)
- May 2023 (140)
- April 2023 (121)
- March 2023 (168)
- February 2023 (155)
- January 2023 (152)
- December 2022 (136)
- November 2022 (158)
- October 2022 (146)
- September 2022 (148)
- August 2022 (169)
- July 2022 (124)
- June 2022 (124)
- May 2022 (130)
- April 2022 (116)
- March 2022 (155)
- February 2022 (124)
- January 2022 (120)
- December 2021 (117)
- November 2021 (139)
- October 2021 (130)
- September 2021 (138)
- August 2021 (110)
- July 2021 (110)
- June 2021 (60)
- May 2021 (127)
- April 2021 (122)
- March 2021 (156)
- February 2021 (154)
- January 2021 (133)
- December 2020 (126)
- November 2020 (159)
- October 2020 (169)
- September 2020 (181)
- August 2020 (147)
- July 2020 (172)
- June 2020 (158)
- May 2020 (177)
- April 2020 (188)
- March 2020 (234)
- February 2020 (212)
- January 2020 (164)
- December 2019 (107)
- November 2019 (131)
- October 2019 (145)
- September 2019 (123)
- August 2019 (112)
- July 2019 (93)
- June 2019 (82)
- May 2019 (94)
- April 2019 (88)
- March 2019 (78)
- February 2019 (77)
- January 2019 (71)
- December 2018 (37)
- November 2018 (85)
- October 2018 (108)
- September 2018 (110)
- August 2018 (135)
- July 2018 (140)
- June 2018 (118)
- May 2018 (113)
- April 2018 (64)
- March 2018 (96)
- February 2018 (82)
- January 2018 (92)
- December 2017 (62)
- November 2017 (100)
- October 2017 (105)
- September 2017 (97)
- August 2017 (101)
- July 2017 (104)
- June 2017 (155)
- May 2017 (135)
- April 2017 (113)
- March 2017 (138)
- February 2017 (150)
- January 2017 (127)
- December 2016 (90)
- November 2016 (135)
- October 2016 (149)
- September 2016 (135)
- August 2016 (48)
- July 2016 (52)
- June 2016 (54)
- May 2016 (52)
- April 2016 (24)
- October 2014 (8)
- April 2012 (2)
- December 2011 (2)
- November 2011 (10)
- October 2011 (9)
- September 2011 (9)
- August 2011 (3)
Calendar
Recent Posts
- Landlords’ Rights Bill: Let’s tell the government what we want
- 2025 will be crucial for leasehold reform as secondary legislation takes shape
- Reeves inflationary budget puts mockers on Bank Base Rate reduction
- How to Avoid SDLT Hikes In 2025
- Shelter Scotland slams council for stripping homeless households of ‘human rights’