Securing insurance for social housing properties can be a complex process, especially when managed by a provider and offered as temporary accommodation under a license agreement. Traditional insurance options may not be suitable for such arrangements, as many insurance companies tend to be cautious about providing coverage. However, it is crucial to adequately protect your social housing property. This blog post will guide you through the key considerations and steps to correctly insure your social housing property.
1. Understand the Provider’s Role
When your properties are managed by a provider, it is vital to clarify their responsibilities and agreements regarding tenant placement and management. Since you have limited control over the tenant selection process, it is essential to identify potential risks associated with this arrangement. Understanding the provider’s role will help you determine the appropriate insurance coverage required for your social housing property.
2. Differentiate Between AST and Licence Agreements
In social housing, properties offered through providers often operate under a licence agreement rather than an Assured Shorthold Tenancy (AST). Insurance companies typically consider licensed properties as temporary accommodations, regardless of the tenants’ duration of stay. This distinction may cause some insurers to hesitate or decline coverage. It is crucial to clearly communicate this arrangement when seeking insurance.
3. Conduct Thorough Research on Insurance Companies
To ensure effective insurance coverage for your social housing property, you need to find insurers specialising in or willing to cover properties managed by providers under a licence agreement. Not all insurance companies are familiar with or comfortable with this arrangement, so extensive research is necessary to identify insurers willing to work with you. Look for insurers experienced in social housing or those explicitly offering coverage for properties under licence agreements.
4. Discuss Your Requirements with Insurance Providers
Once you have identified potential insurance companies, engage in direct communication to discuss your specific needs. Provide details about your social housing property, the provider arrangement, and the licence agreement. Seek clarification on whether they are willing to provide coverage and any conditions or modifications required. This direct dialogue will help you understand each insurer’s approach and find the best fit for your property.
5. Customise Insurance Policies
Since traditional insurance policies may not adequately cover properties under licence agreements, customisation becomes necessary. Collaborate closely with the insurance provider to address all potential risks associated with social housing properties managed by providers. This may involve adding additional coverage options or modifying existing terms to ensure comprehensive protection.
6. Consider Specialist Insurance Providers:
In certain cases, it is advantageous to seek insurance from specialist providers who specialise in social housing or temporary accommodation. These insurers possess a deeper understanding of the unique challenges and requirements associated with such properties. They can offer policies specifically tailored to meet the needs of social housing landlords, ensuring appropriate coverage for your property.
7. Regularly Review and Update Your Coverage:
Insurance needs evolve over time, making regular coverage reviews crucial. Stay in constant communication with your insurance provider to discuss any changes in property conditions, tenant demographics, or provider arrangements. Regularly updating your insurance policy will ensure that your social housing property remains adequately protected, addressing any emerging risks promptly.
Conclusion
Ensuring proper insurance for social housing properties, particularly when managed by providers under a licence agreement, requires careful consideration and communication with insurance providers. By understanding the unique circumstances surrounding your property, conducting thorough research, and collaborating with specialist insurers, you can obtain the appropriate coverage to safeguard your investment. Remember to periodically review and update your insurance policy to adapt to changing circumstances, ensuring continued protection for your social housing property.