Avoid Making Landlord Insurance Mistakes

Wednesday, September 3, 2014

1 In 10 Landlords Bend Truth When Applying For Landlord Insurance

1 In 10 Landlords Bend Truth When Applying For Landlord Insurance

1 In 10 Landlords Bend Truth When Applying
For Landlord Insurance

New research by a leading insurance provider has discovered that up to 20% of UK private rental sector landlords make mistakes, or attempt to bend the truth, when applying for landlord’s buildings insurance or landlord’s portfolio insurance. But these errors can prove costly in the long term.

Data gathered by a leading insurance provider indicates that 20% of landlords had failed to disclose the whole truth when attempting to purchase landlord insurance, whether by accident or design, in an attempt to cut costs.

1 in 10 UK PRS landlords surveyed admitted being economical with the truth, in order to get a cheaper landlord insurance premium, or because they were afraid of being refused insurance cover.

The survey also discovered that a 20% of respondents admitted lying to their current or potential employers, while 1 in 9 admit to fibbing about their weight.Dr Patrick Fagan, lecturer in consumer behaviour at Goldsmiths University, London feels that the research shows that some people don’t differentiate between a lie, told to spare someone’s feelings, and being less than truthful with an insurer or employer.

Dr Fagan said “I think we’d all agree that a little frugality with the truth to avoid upsetting someone is fine, but it’s interesting to see that there are still a sizeable group of people who’d be dishonest in more serious and formal situations”.

There are often a number of common mistakes made by landlords when they are applying for or renewing rental property buildings insurance, including wrongly stating the full rebuild cost of the rental property, the employment status of the tenants and failing to disclose whether they had made any previous insurance claims within the past 5 years.

The consequences of making a mistake on insurance documents could be severe, if discovered by the insurer, they could declare the landlord insurance policy null and void, refuse to pay out on a genuine claim or reduce the value of the amount that they are willing to payout.

Honesty really is the best policy!

This was written by Mike Clarke. Posted on at 11:30 am. Filed under Insurance. Tagged , , , , , , , , , , , , , , , , , , , , , , , , , . Bookmark the permalink. Follow comments here with the RSS feed. Both comments and trackbacks are currently closed.