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A
possible recession around the corner in the UK – make sure rental properties are
properly insured
Released
3rd July 2008 Summary:
Commentators
are saying UK and Ireland could be heading for recession and consumers tightening
their belts. One concern is they could be cutting back on essential services like
insurance in rental properties. Economists
are predicting that the UK and Ireland could be heading towards recession. Estate
agents have reduced sales and have been laying off staff and in some cases as
reported by a major Irish
agent in the last ten days transferring staff to the buoyant lettings
market. In
the UK similar situations are occurring up and down the country and although properties
are not selling as they have been, are still letting out well. Philip
Suter of jml Property Services has been in the letting business
for over 30 years. In his career he has been responsible for setting up the residential
letting departments of jml
Property services, Frank
Farr & Sons and The JNP
Partnership. All these have been located in the south east of England
to the west of London. Philip
has also worked through the times when the sales market have been very good and
very bad. Philip said "in the late 1980s and early 1990s there was negative equity
problems, people could not sell so they turned to letting, however unemployment
was not so good so quite often it was harder to let a property". He
went on to say "this time round, fortunately unemployment figures are still very
low and those thinking of buying are waiting for property prices to drop and consequently
they will prefer to let instead of buy." There
are signs that unemployment may start to rise again and unlike the early 1990's
the rental housing stock in the UK and Ireland has vastly increased fuelled by
the "buy
to let" market. In Ireland many developers have not been able to
sell apartments so entire blocks have been added to letting market. The downside
of over supply could mean that rental prices will not increase and could fall.
With
the on going credit crunch, consumers tend to cut back, people will continue to
require mobile
phones, satellite TV, but when it comes to economies the question
of insurance comes high on the agenda. Philip
Suter warns that landlords
and tenants
must continue to insure their properties and contents. He has come across many
landlords in his career who think that they will not take out limited contents
insurance on an unfurnished property. Often they think the tenant's will cover
their carpets and curtains, which it won't and then there is a burst pipe. The
buildings insurance covers the repairs to the ceiling, decoration and plumbing,
but not replacement of carpets and curtains. Many
tenants simply do not bother with insuring their belongings. They think these
are covered by the landlord's policy, which in the UK they cannot be. They might
spend a lot of money on ipods, mobile phones, TVs and computers and either forget
to get them insured or cut back as they think "insuring them is a waste of money
and they could spend the money on entertainment instead!" In
the UK there are several specialist providers of Landlord and Tenant insurance
products, Companies like HomeLet,
Endsleigh
and Rentshield
Direct. Rental insurance providers normally offer Landlords policies
for buildings, contents, emergency repairs, legal expenses costs and rental guarantees.
For
tenants they usually offer contents insurance and can cover items like bicycles
as well. With some companies the policies are portable, so if a tenant moves to
another rental, the insurance cover moves as well. Students are not forgotten
either. These types of specialist insurance company will allow Landlords and Tenants
to pay monthly or annually and quite often credit card payments are accepted.
When
paying monthly of course, if the Landlord or Tenant, does not make their payment,
they will find that insurance cover will stop and in the event of a claim there
will be no insurance, so it is imperative that payments are continually made.
jml
Property Services has been running jml - Insurance since 2002,
this is an on line introduction service for Landlords and Tenants to obtain a
quote on line and buy direct on line a policy from HomeLet,
Endsleigh
or Rentshield
Direct. More information can be found at the jml insurance website
www.jml-insurance.co.uk
Ends....
Company
Information jml
Insurance.co.uk is part of jml
Property Services, the trading name of Jeffrey
Milner Ltd. The company is an UK based company that was
established in 1979. jml insurance acts as an introducer for insurance companies
selling property insurance including landlord and tenant rental products, pet
insurance, wedding insurance, motor insurance, car hire excess insurance, travel
insurance and non standard insurance products. They also operate jmlvillas.com
an online marketing service for owners of holiday home property to advertise and
are part of the jml
Group that includes jml
Training and Consultancy. ©
jml Property Services July 2008 
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