Landlord Insurance: Buildings and contents insurance for rented properties can be difficult and expensive to source. However, a new product from online insurance provider 123.ie may shake up the insurance market for landlords.
The company, which launched a new insurance package for landlords in December 2003 and claims its take up so far has been "exceptional", suggests its package can be up to 25 per cent cheaper that the next most competitive quotation. Lower quotations, it claims, are offered because the cover is only available to properties less than 100 years old and let as a single unit to a couple, family or group of employed professionals.
Derek Richardson, chief executive of Gallabar Holdings Ltd trading as 123.ie (the company is regulated by the Irish Financial Services Regulatory Authority), says it's very difficult for small-scale buy-to-let investors to get insurance on their investment properties without some strings attached - usually that the investor insures their main residence with the same insurer in addition to the rented property. He also maintains that it's "very difficult" for landlords to get insurance cover for contents in apartments because of the risk of being sued by tenants for accidents involving those contents. The insurance package offered by 123.ie includes buildings cover, property owner's liability, contents cover and cover for loss of rent. Quotes are available online; this process involves selecting a county, area, amount of cover required and answering a few simple questions, and the quote is given instantly. Payment is by credit card and, once signed up, all necessary documents are sent out the following day.
Given the success of Section 23 and Section 50 schemes and the buoyant state of the buy-to-let market generally, a new generation of property investors should welcome increased competition in the insurance market for landlords. Considering that 123.ie has been Ryanair's online financial services partner - developing innovative products online for the airline - it will be interesting to see whether 123.ie can shake up this part of the insurance market to the same extent that its partner has achieved in the airline industry.
