Who needs property insurance?
Anyone who owns a property would be well advised to take out property insurance. If the property is mortgaged, it will most likely be a condition of your mortgage lender that the property is adequately insured. If the property isn’t mortgaged, it’s still likely to represent a significant investment that you’d presumably want to protect.
Things to consider when buying property insurance
The first common mistake is in misunderstanding how to calculate the value of the property, so that any policy bought can pay out a sum reflective of the valuation. You should calculate the value based on re-build costs, not market value. Its likely that its worth getting a property surveyor involved so that you can be sure you have the right level of cover in place.
Do you need your property insurance to cover the building only, or contents as well? Even if the property is tenanted, it’s likely that some of your items will be in the property – tools and maintenance machinery, for example. If you have a multi-tenanted property, it’s important not to overlook how the common areas (stairwells and lifts, for example, as well as any garden area or car park) are insured.
Depending on your particular circumstances, there are potentially many considerations and if you miss one, you risk being underinsured – or not protected at all. Call Real Insurance today. We’ll be happy to discuss your requirements, make recommendations and arrange a policy for you.