One thing that Insurers will always look at when you are trying to get a Landlord Insurance quotation is the type of property that you are trying to insure. They are usually rated as either bungalow or house, converted flats or purpose built flats and some insurers will also insure bedsits under a Landlord Insurance Policy as well.
The one that is most common is when people have a house or bungalow that they want to use to earn a bit extra money and they rent this out to a person or family. This is the lowest rated type of property as the only ones that will be responsible for the majority of damage that could be caused is the family that is renting the property and it is being rented out in the way that it was built.
The next one is Purpose Built Flats, especially small blocks such as 4 or 6 flats in the property, which are the most common. These are rated higher than a normal house as there is more chance that damage could be sustained either from another person or one of the other flats, for example if the above flat had a water leak that damaged the flat that you were renting out.
However these are still rated better than Converted Flats as they were built to be flats and in some places such as parts of Scotland they are becoming the normal type of property that is being built.
Converted Flats are also quite common nowadays but most insurers rate them quite highly and some of them will refuse to insure them unless you are insuring all of the flats that are in the property.
The reason that a lot of insurers don’t like converted flats is the fact that they were originally houses and then were turned into flats instead of being built that way; also as with the other type of flats there is more danger of being damaged by or damaging the other flats in the property.
Bedsits are probably the type of property that is rated worst by all insurers as with that you are renting rooms out instead of an actual property and with this type of property there will be more than one person or family in there.
Also with so many people in the bedsits the lease agreement is usually less than 6 months which insurers don’t usually like as they like there to be a fixed period that the tenant will be in the property for and this is not always the case with bedsits.
By Bruce Fong