Friday 15th February 2008
Owners of rented property might be wise to check they are still adequately insured, they have been warned.
Sainsburys Finance estimates that rental accommodation in the UK is now worth a combined total of £641 billion.
With the figure up from £571 billion in November 2006, there is the risk that home insurance policies are no longer adequate for the increased value of the properties they protect.
Steve Johnson, head of insurance at the firm, comments: "Theres been an increase of about £5.7 billion a month according to this research, which is phenomenal."
He adds that when landlords have a particular value attached to their policies "what they have to do every couple of years is assess whether or not that has increased".
A similar situation could arise in the short term if, through renovation or extension, the worth of a house were to be increased, he concludes.
But by obtaining a policy with no limitation on the maximum level of building insurance covered, such concerns might be avoided.
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