The market for short letting periods is growing, particularly as the UK and expatriate population becomes more mobile during the recession. People often want to rent for limited periods during temporary postings, and their tendency to be solvent can appeal to landlords, particularly in the tough buy-to-let markets.
However, in recent times one thing in particular has been discouraging to landlords: the difficulty of getting insurance cover for properties rented out for brief periods. Most insurers insist the landlord has tenancy agreements running for at least six months, and this can be a particular problem for the lucrative holiday or temporary worker tenancy market.
Now Adrian Flux Insurance Services has introduced a scheme offering good cover for properties on short-term rental agreements of six months, or even less.
"While there are plenty of insurers willing to look at property-to-rent portfolios, few of them like short- term lets," says Julie Carter of Adrian Flux’s landlord division. "But we’re keen to increase our business with landlords catering for this type of market. In the present economy we see them as having good potential. And we have the flexibility of quoting with six months tenancy agreements or without."
Naturally Flux’s new scheme gives comprehensive cover for the building or apartment. However, it goes further. The scheme can also offer free contents insurance for furniture and fittings that landlords typically supply with short-term lets. These could include beds, curtains, sofas and kitchen equipment – and Flux’s cover is free for contents up to £5,000 in value.
"The free cover is only for the landlord’s fixtures and is not designed for the tenants’ contents," explains Julie Carter. "However, this £5,000 figure is plenty for most short lets, since few short-term tenants require a large number of fixtures. Bundling it in with the building insurance is an easy way for landlords to get the extra cover they need for free."
Adrian Flux Insurance Services aims to offer cheaper property insurance and has a range of policies for landlords and buy to let, including specialist schemes for hard to insure properties such as thatched homes, flat roofs, underpinned buildings and those at risk of flooding.
For information call the Flux household insurance hotline on 08700 772266, email household@adrianflux.co.uk or visit the website, www.adrianflux.co.uk, and click on the relevant button under the ‘Home Insurance’ section.