Insurance for visiting rental properties

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Tue 24 Jan 2017 12:10
Insurance for visiting rental properties - movilogo

If I visit my rental properties (owned personally not using Ltd Co) using my car which is under SDP&C cover, will it require any additional insurance?

If yes, when do I need that?

1. Before buying the property (to inspect whether to buy or not)

2. After buying - when I am oficially owner

3. Same as 2 but when property is owned by someone else (e.g. spouse) rather than myself.

If I need additional insurance, how much roughly it can increase my premium?

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Tue 24 Jan 2017 12:21
Insurance for visiting rental properties - daveyjp

If you believe you are running a business (earning money from rental properties is a business) it is far easier to just get business use - that way you know you are always covered.

Extra cost will range between zero and a few percent , but less than potentially being refused a claim due to not being covered!

Do a quote and see.

Edited by daveyjp on 24/01/2017 at 12:22

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Tue 24 Jan 2017 12:26
Insurance for visiting rental properties - RobJP

Ltd Co or not makes no difference - you are running it as a business, so require business use cover.

That would apply to properties you own, properties you are considering purchasing, or to properties that you might be managing on behalf of your spouse or another person.

So you need business cover - currently you are driving whilst uninsured.

As to the additional cost, nobody can tell you. It depends on you, your age, your driving history, mileage, where in the country you are, and a host of other factors. But I can tell you that you need to arrange that additional cover - NOW.

Finding yourself uninsured after an accident, or being prosecuted for not having the appropriate cover (and thus being uninsured in the eyes of the courts) is not something to be taken lightly

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Tue 24 Jan 2017 12:34
Insurance for visiting rental properties - movilogo

>> currently you are driving whilst uninsured

I havent' yet purchased any rental property :-) This is exactly why I asked the question.

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Tue 24 Jan 2017 13:29
Insurance for visiting rental properties - martint123


I havent' yet purchased any rental property :-) This is exactly why I asked the question.

Owning is not the only criteria. As you mentioned - visiting potential properties, estate agents, solicitors could all be interpreted as business use. My last job had a slight possibility of visiting outlying sites so I added business use and after all the faffing about it was only a few quid to add it.

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Tue 24 Jan 2017 13:31
Insurance for visiting rental properties - RobJP

>> currently you are driving whilst uninsured

I havent' yet purchased any rental property :-) This is exactly why I asked the question.

If you are viewing properties, with the intention being to purchase and let out on a business basis, then the argument would be that business use should be in place. Whether making a profit at the time or not, the intent is there, and the use of the vehicle on the day is business-related.

An insurance company would be entirely entitled to take that viewpoint, and I'd hate to be on the other side of that in an insurance claim situation.

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Tue 24 Jan 2017 13:33
Insurance for visiting rental properties - Bromptonaut

>> currently you are driving whilst uninsured

I havent' yet purchased any rental property :-) This is exactly why I asked the question.

The phrase 'if I visit my rental properties' in the opening post might have lead respondents to understand you already have a portfolio.

Either way, even if you're only at start up stage then it would be false economy not to take out business cover. Speak to your insurer ASAP.

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Tue 24 Jan 2017 14:38
Insurance for visiting rental properties - Miniman777

In addition to a company car, the Mrs Miniman has her own vehicle and that is insured for both of us for with business use with Direct Line in the event we need to swap cars. Biz insurance is standard with Direct Line, I believe.

Risk to great for the cost of the business cover.

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Tue 24 Jan 2017 14:46
Insurance for visiting rental properties - Cris_on_the_gas

For the extra cost if any of business use insurance it's a no brainer.

If you are a real bean counter then you could claim the extra on your tax form as a business expense, and while your at it claim the mileage and cost of the car as well. you could end up in profit !

Edited by Cris_on_the_gas on 24/01/2017 at 14:47

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Wed 25 Jan 2017 16:35
Insurance for visiting rental properties - Palcouk

You cannot claim the cost of the car unless its purchased for full business use, and in that case you would be paying a BIK for personal use.

The HMRC mileage rate up to 10k is 0.45p/mile and that includes all car expenses, You would also need to be able to produce a mileage log for the business use

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Wed 25 Jan 2017 17:30
Insurance for visiting rental properties - concrete

I agree with other statements on this thread. Business use is not that expensive. I had it for years and it really was just a few pounds extra. Easier all round just to claim mileage at the HMRC rate and this avoids all the BIK and reduction in your Persnal Allowance code. If you enough miles it can be to your distinct advantage. Do not stint on proper cover, it could save you a fortune one day if the worst were to happen. Also you should need Public Liability cover. If you are showing people around and they have a fall or other injury you may find yourself at the wrong end of a claim.

Good luck.

Cheers Concrete

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