Apartment Owners – Check Your Insurance Cover
Many landlords have found to their cost that they do not have adequate insurance on apartments.
The result is that while damage to the structure is covered by the block policy held by the management company the landlords will have no cover for loss of rental income.
Tenants may have to move out while repairs are being undertaken, which can take months – once a tenant moves out it is unlikely they will return.
While you might think that your content only insurance policy has an “Alternative Accommodation” cover this may not apply to tenants (it can be limited to owner occupiers).
Where cover does apply to tenanted properties the benefit is limited to a percentage (usually 15% to 20%) of the content sum insured – so if your contents are insured for €20,000 the most you will get for loss of rent is €4,000,
Another, and perhaps potentially more serious, problem that some landlords don’t realise is that if they don’t have their apartment contents insured they won’t have any liability insurance to cover being sued by a tenant for an accident in their apartment.
The Block Policy only covers liability for accidents in common areas (hall, stairs, landing etc)
Check your insurance policies to ensure you are adequately covered. If you’re not sure ring your broker or insurance company. Make sure they know the property is occupied by a tenant(s) (failure to do so can limit or invalidate your cover).
