With a standard plan landlords can be exposed by negligent tenant behaviour, damage on the property or unwarranted occupancy if the home is left vacant.
One in three (35.6%) UK landlords are underinsured by holding standard home insurance plans rather than landlord policies, Verdict Financial research has found.
With a standard plan landlords can be exposed by negligent tenant behaviour, damage on the property or unwarranted occupancy if the home is left vacant.
Thomas McCourtie, analyst at Verdict Financial, said: “Insurers have a key role to play in educating customers about the necessity of purchasing insurance which corresponds to the intended use of the property.
“Quality checks can be implemented at the initial application stage or during the purchase process in order to identify properties that are to be let, and for the buyer to clarify which type of cover is required. This helps to ensure that the correct product is purchased.
“Given that rented accommodation has become the only real affordable option for many people, especially those living in large cities such as London, demand is high, and it is therefore important that the landlords supplying these properties are fully protected with the right cover. It also represents an opportunity for insurers to expand their coverage of the UK housing sector.”
