Cutting straight to the point – what do landlords of buy-to-let properties need to know?
Standard buildings and contents insurance often includes flood insurance. In case of sudden damage from flood water impacting your property or belongings, your policy may cover repair or replacement costs.
However, it’s crucial to note that gradual water build-up or damage due to negligence or inadequate property maintenance isn’t covered. If you reside in a high flood risk zone or your property has a history of flooding, it’s advisable to secure insurance that specifically addresses this risk.
Flood cover within your home insurance becomes crucial if scenarios like river or canal overflow, storm-induced seawater breach, or heavy rainfall causing surface water flooding pose potential threats to your property.
Why Is This Important?
Investing in a buy-to-let property comes with the responsibility of safeguarding your assets. With unpredictable weather patterns and the increasing frequency of storms – (with Storm Jocelyn the tenth named storm to sweep across the country this winter!) It’s crucial to assess your insurance coverage, especially for flood risk areas.
Quotezone emphasises the importance of proactively notifying your insurance provider if your property is within 400 metres of a river, stream, or coastline, even if you’ve never encountered flooding.
Identifying High-Risk Areas
Understanding what constitutes a high-risk area is vital. Properties located on floodplains near rivers, canals, or shores prone to flooding are classified as high risk. This designation can significantly impact your insurance premiums, making it essential to check your property’s flood risk level through the UK government’s online flood map before securing insurance.
Potential Classification as a Flood-Risk Property
I’ve Never Experienced Flooding Before – Does This Matter? It is possible that insurance providers might class your house as a ‘flood-risk property’ even if you’ve never experienced flooding yourself.
One of the reasons for this could be because other people in your area have claimed for
flood damage in the past, and that type of historical claims data can affect insurance premium calculations for nearby properties.
However, even if neither you nor your neighbours have experienced flooding in the past, if your home is built on a floodplain, insurance providers will still view the property as a significantly higher insurance risk, and their premiums will almost always be higher to reflect this.
Factors Affecting Insurance Costs
According to GoCompare – the cost of home insurance with flood cover varies, depending on how close you live to water.
- The average annual cost of home insurance for those within 150 metres of water is £222.
- Homes over 400 metres away pay £185 on average.
If your home’s flooded before it may cost you more to insure it. You might be able to get cheaper quotes if measures are taken to reduce the possibility of water entering your home.
For example, many insurers do take into account extra measures that are put in place to prevent flooding such as anti-flood doors and other permanent flood defence features, provided they meet the appropriate industry standards, have been installed by an industry professional and have been appropriately maintained.
Consideration for Tenants
It’s crucial to recognise that your contents insurance won’t cover your tenants’ possessions. Encourage your tenants to secure their insurance for personal belongings. Additionally, landlords can opt to include loss of rent cover in their policy to mitigate financial loss if tenants need to vacate due to an insured event like a flood or burst pipe.
Our advice:
For comprehensive coverage, landlords may find it beneficial to consolidate various protections into a single landlord insurance policy. This approach ensures a holistic approach to safeguarding your investment property against potential risks, including floods.
Remember that timely communication with your insurance provider and staying informed about your property’s flood risk level are pivotal in securing comprehensive coverage.
