Buy-to-let property value grows £69.5 billion a year but does it have adequate home insurance?
15/02/2008
Landlords have seen the value of their properties rise considerably in recent years, reaching £641 billion, but Sainsbury's Bank is urging those with money invested in the buy-to-let market to ensure that their property has sufficient home insurance to cover the additional value.
Steve Johnson, head of Home Insurance at Sainsbury’s Finance commented: "The buy-to-let market has grown substantially in recent years. People have invested a huge amount of money into this sector and as a result of rising house prices many have seen the value of this investment grow substantially.
"It is therefore imperative that landlords ensure their properties are covered by quality
home insurance."
He continued to say that opting for a home insurance policy which provides unlimited buildings cover means that landlords "don't have to worry about calculating the rebuild value of their property and are safe in the knowledge that they won't be underinsured."
Mr Johnson also suggests that landlords go for a policy which provides contents insurance and cover for loss of income. Even though the resident is responsible for their own belongings, they do not always have insurance, so things such as the furnishings and carpets would not be covered without contents insurance.
Sainsbury's Finance found that there are approximately 2.76 million properties belonging to landlords in the UK, and that the steepest rise in value was in London, where landlords experienced a £24.44 billion increase between November 2006 and November 2007. The lowest increase was in Wales, where property owned by landlords rose by £942.72 million.
The buy-to-let market has experienced huge growth in line with the rest of the property market over the last decade, with the number of
buy-to-let mortgages rising by 98 per cent between the first six months of 2004 and the same period in 2007.
© Fair Investment Company Ltd
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