Increased property value 'could leave some underinsured'

Posted : 13-02-2008

With the value of rental properties increasing, landlords should ensure that their home insurance policies cover their investments, according to Sainsbury's Finance.

Steve Johnson, head of insurance at the firm, states that when budding property owners take out policies there is a sum protected that is restricted to that policy.

He explains that every few years, landlords should assess whether that amount has increased or not.

Continuing, Mr Johnson notes that if they were to carry out any renovations, building work or add an extension then this would not necessarily be reflective of the rebuilding costs that are on the original policy.

As such, he notes that updating a provider to make them aware of changes is advisable.

Sainsbury's Finance estimates that the combined value of rental properties in the UK has reached £641 billion, noting that in November 2006 this figure stood at £571.38 billion, increasing by around £5.79 billion per month over the course of the year.


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