The whole country is in the grip of the highest inflation for over forty years. The costs of basic food supplies are increasing at an average of over 10% each year, and fuel bills have literally gone through the roof. Why is this happening now.
The world is only just recovering from the after effects of the worldwide COVID19 pandemic. The Russian invasion of Ukraine has had a huge impact on global prices for oil, gas and food. Governments and businesses are struggling to make the change to a more environmentally friendly economy. Put all these things together and you get a perfect storm of instability and uncertainty.
In such an uncertain climate, it pays to do anything one can to try mitigate the consequences for ourselves and our businesses.
This is where ensuring we have adequate insurance in place becomes of paramount importance. Of course, there is little we can do in the face of a worldwide pandemic and international conflict. But there are steps we can take as tenants and landlords to take the sting out of the inevitable consequences of such events.
Tenants
We have already discussed the financial situation acing all households. Higher prices for everything from food to fuel and the resulting challenge to pay for essential items such as the rent. This challenge can be made even more difficult when tenants lose their jobs when the company that they work force restructures or folds altogether.
In such cases they may be entitled to additional benefits which will help them meet their basic costs. But is there more that they can do? Income Protection Insurance can provide extra piece of mind when someone finds themselves out of work due to illness or injury, or is otherwise made unemployed and is struggling to find work.
When money is scarce, it becomes very difficult to replace items that had been damaged or stolen. It is vital then that renters must ensure that they have adequate cover to replace those essential items. Contents Insurance or Renters insurance.
What’s the main difference between Contents Insurance and Renters Insurance? While Contents Insurance will cover the cost of replacing your home’s contents, Renters Insurance will protect your contents while renting in a shared home or flat. Many of these policies will also include cover for loss of food in the fridge or freezer during prolonged power cuts. It is up to the tenant to carefully examine the excesses and exclusions from the policies available, and to ensure that the policy will cover the full cost of replacing all their belongings, from electrical appliances to furniture and clothes.
Landlords
What insurance is there available to assist Landlords? There are a wide range of insurance policies designed to help landlords mitigate against a wide range of possible scenarios. Landlord Liability Insurance would offer cover the cost of any compensation claim made by a tenant or a visitor for damage or injury resulting from something that goes wrong with the rented property.
Landlord Buildings Insurance would offer cover for any material damage to the property itself by such as fire, flood, or vandalism. This cover protects the structure of the building, for example walls and floors. This is particularly important at a time of increased risk of seasonal flooding and frozen pipes.
Landlord Contents Insurance protects such things as white goods and furniture against theft or damage, but not the normal wear and tear sustained during the course of a tenancy.
Loss of Rent Insurance offers help in the event that the property becomes uninhabitable for a due to damage caused by floods or fires.
Tenant Default Insurance covers the loss of rent if a tenantfails to pay their rent for two or more consecutive months, and begins to accrue a back log of rent arrears. The landlord is required to have checked references and carried out proper credit checks prior to commencing the tenancy.
In addition, Accidental Damage Insurance, Alternative Accommodation Insurance, Unoccupied Property Insurance, Landlord Home Emergency Insurance and Landlord Legal Expenses Insurance are all available to offer Landlords the peace of mind to face any potential crisis.
