Over 1 million properties potentially at risk…
With the impending welfare reform via Universal Credit and changes in immigration laws set to massively affect millions of landlords right across the UK, are you aware that your building insurance could be invalid if you are not referencing your tenants correctly?
Referencing your tenant should not stop at RGI (Rent Guarantee Insurance), as insurance companies are now showing that a properties building insurance could be invalid if proper referencing has not been carried out.
Property Insurance companies are now asking their clients the following questions when renewing their policies:
- Do you interview the tenants before tenure?
- Do you carry out tenant referencing?
- Do you see the tenants in and out of the property?
- Do you rely on a letting agent to carry out your tenant referencing?
- If so; Does the agent provide you with proof that the referencing has been carried out?
So with over 1 million properties now potentially at risk it is understandable that insurance companies are starting to insist on landlords being more hands on in dealing with the letting of their properties, to make sure that their future tenants are referenced correctly OR to make sure that their Agents are carrying out in-depth and comprehensive referencing procedures.
With a steady increase in claims on insurance policies for malicious damage inflicted on rented property (coupled with LRS’ exclusive property damage Tenant Alert statistics) it stands to reason that if a tenant is referenced thoroughly and due diligence has been shown by the landlord (or those acting on behalf of the landlord) they needn’t ever have to make a claim – meaning that their premiums will not increase.
Furthermore, LRS members have told us that when they have made a claim that their premiums have increased by up to 50% year on year, and those that have not declared claims have also seen an increase in their premiums.
The LRS 5 point Tenant Referencing plan is perfectly acceptable for both Rent Guarantee Insurance Policies and Building Insurance Policies.
For just £12 (inc VAT) LandlordReferencing.co.uk can offer Landlords and Letting Agents the following:
- Tenancy and Guarantor Application Form
- Financial Report (via credit rating market leaders Equifax)
- Lifestyle Reference (as registered by a tenants previous Landlord/Agent)
- Employer & Landlord Reference (provided by the tenant)
- Accounts Reference – Ideal for tenants or guarantors that are self employed (provided to you by the applicant)
And, to encourage the uploading of good tenants, LRS even gives each landlord/agent £2 worth of credits for each previous, existing and applicant tenant that they upload onto the LRS database. Meaning that LRS members can back-date tenants details who were not properly insured.
As we are very aware at LRS; many landlords do not bother taking tenants to court for rent arrears and/or property damages incurred throughout the tenancy these days – therefore you cannot be referencing properly if you (or your agent) are not obtaining a Lifestyle Reference.
- Is your tenant referencing being done properly?
- Have you ever been turned down for the renewal of your property insurance, because of this?
- Has an agent ever voided your property insurance due to inferior referencing procedures?
- Is it really worth being turned down next time you try to renew your property insurance policy for the sake of £12?
- Why don’t insurance companies take the references for proof?