At Just Lets, we know there are so many things for landlords and tenants to consider, it is no surprise that some things slip their mind. Insurance is likely to be one of these things.
While we shouldn’t be in a rush to look for positive sides of how we have managed the pandemic, there is no denying that with people staying at home more, there has been a fall in many of the issues that lead to insurance claims.
Home insurance claims have fallen in 2020
A study claims that the home insurance sector in the UK has saved £368,326,000. This is a study carried out by insurance comparison company Hello-Safe, and they believe there is a fall of 16.76% in insurance claims in Peterborough and the East of England.
This reduction in claims should result in reduced premiums, making insurance more affordable, which is always a positive outcome.
This might be something of interest in the rental market, because both landlords and tenants should have insurance relating to the rental property.
Many landlords have insurance as part of their buy-to-let mortgage, with many lenders making this form of insurance mandatory. Many landlords also consider other forms of insurance, with rent protection a popular choice.
Tenants must arrange insurance for the rental property
However, just because landlords have insurance doesn’t mean tenants can overlook having insurance for their belongings. It is vital tenants have insurance in place for their belongings, which is another cost that must be considered by tenants.
If this cost is lowered, it should help tenants in the letting process, and this is likely to be of benefit to landlords.
Antoine Fruchard, insurance expert and CEO at Hello-Safe.co.uk said: “It is not a surprise to see that home insurance claims have decreased in the significant way over 2020, with most Britons stuck at home during a year where very restrictive measures were taken to stop the Covid-19 pandemic. Indeed, as we observed with car or health insurance products, the pay-outs made by home insurers have gone down.”
Antoine also said; “However, until now, the industry has taken no decision to give back some of the savings made to the policyholders. This is a questionable position, when the impact of the economic crisis is just starting to strike most of the British households, and could last for years. Moreover, many workers will now make the decision to work from home, fully or partially. For those remote workers, the insurers will surely have to adapt and propose new solutions. Indeed, the future of home insurance is still to create”.
If you are a landlord in or around Peterborough, and you need assistance in managing your rental property, we can help. We know these are challenging times for landlords, but there is a demand for rental property. When you need guidance in the local market, contact Just Lets Peterborough today, and we will be happy to help you.
You can find Just Lets Peterborough at 142 Oundle Road, Peterborough, Cambridgeshire, PE2 9PJ. Feel free to email us at firstname.lastname@example.org or call us today on 01733 346255.