Landlords running a property business from home can find their car and property insurance excludes them from cover.
Many landlords making claims for property visits or to collect rents in their car do not have cover unless they have business use specified on the policy, warns the Residential Landlords Association (RLA).
Standard car insurance cover excludes driving a car for business.
The RLA cites More Than as one insurer excluding rent collection from normal cover.
Home as office insurance is another problem for landlords highlighted by the RLA.
Most home insurance does not cover the business use of computer or office equipment, so if thieves steal a business computer or one is accidentally damaged, the cost can be excluded from a claim.
“It is possible that landlords who use cars covered by normal insurance for social, domestic and leisure use, to collect rents and visit their rental properties, may not be covered if they have an accident while ‘on business’,” said a RLA spokesman.
“If landlords have any doubts about their home or car insurance, they should check with their provider or broker.”
To make sure they are properly covered, landlords should consider the following insurance points:
• Upgrading car insurance to include business - this should not affect the cost of a policy
• Changing home insurance to include home as office cover for computers, mobile phones and cameras used for the property business
• If a landlord sees tenants at home, consider public liability cover in case someone sues as the result of an injury or accident on the premises
Landlords can claim the cost of business insurance as a rental expense in tax returns. The cost of computers, software, peripherals, consumables and other gadgets can also be claimed as a property business expense.
Landlords with a letting agent collecting rents and managing buy to let properties cannot claim business costs for visiting their investment properties.
