Average house prices continue to rise and the effects of inflation continue to raise overall costs of living. Yet, when it comes to the housing market, first-time buyers are spearheading purchases – nearly half of the purchases made were made by first-time property owners, in recent months, according to a report by Property Investor Today on the 23rd of August 2017.
There has also been a surge in new mortgages granted to first-time buyers – an increase of more than 20% on a month by month basis and a 6% annual increase since the previous high at the end of 2006.
Whilst first-time buyers may be coming to the rescue of the general housing market, not only do they, but also the huge population of existing property owners continue to need building insurance that is tailored precisely and sympathetically to their individual needs and requirements for the protection of their significant investment in property.
Along with first-time buyers, current homeowners, landlords of buy to let property, and investors in other residential and commercial real estate all need property insurance that safeguards the bricks and mortar and owners’ liabilities.
Elements of cover
Property insurance involves a wide combination of different risks:
Building and contents
- probably the most obvious – and typically at the heart of any such cover – is the building insurance which is essential to the protection of the structure and fabric of the premises against potentially major risks such as fire, flooding, storm damage, impacts, vandalism and theft;
- similarly, contents insurance is required to safeguard the contents of the property – whether personal possessions, property owned by the landlord of residential premises, or plant, machinery, equipment and appliances owned by the leaseholder of commercially let property;
- as the property owner, you also have a duty of care to prevent injury or property damage to third parties and members of the public who may be injured or have their own property damaged through some connection with your own;
- even residential owner occupiers typically hold at least £1 million of public liability insurance, whilst buy to let landlords and commercial property owners may need cover of £5 million or more;
Landlords’ liability insurance
- if you are the owner of let property, you may need further cover to protect your liabilities for claims made by tenants or leaseholders of your property who may have suffered injury or damage to their own property; and
Loss or rental income
- if you are a buy to let landlord or an investor in commercial property, your business will probably depend on the steady income stream of rent from your tenants and leaseholders;
- in the event of a major insured event which leads to such extensive damage that the property is no longer habitable or usable until repairs or reinstatement have been completed, your property insurance may provide compensation for loss of rental income.
You don’t need to be a first-time buyer to take advantage of the specialist knowledge and expertise we offer here at Aston Scott. Whatever your property insurance needs, we are able to offer a wide range of products currently available across the full spectrum of this part of the property insurance market to meet your individual needs and requirements.
To find out how, please just give us a call on 03300 085045.