How to Mitigate the Risks of Climate Change on Your Property Insurance

When you consider the size of the investment for a family home and the associated running costs, it pays to do your homework and make sure that your investment isn't going to fall foul of something that is out of your control. One such eventuality could be the effects of climate change. If you are considering an investment property abroad the same rules apply, naturally you'd want to be considering the fluctuations in the climate for that region.

All of these climatic changes mean that quality of life can be severely affected due to severe weather events, water scarcity, damage to the environment and buildings, and there could be reduced availability of property insurance for “at risk” properties.

Bearing all these factors in mind, when considering purchasing investment property, at home or abroad, it is vitally important to do your research and to consider the geographical area the property is in and the possible effects severe weather conditions may have on the property. It also essential the make sure that there is adequate property insurance cover to provide protection in the event of any major events, such as flooding or subsidence damage due to drought, for example.


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    Shop around before you buy landlords insurance. The type of policies, coverage and prices can vary widely so make sure you get several quotes. Putting in the time to do some research before committing yourself to an insurance policy will mean that you get the best protection for your money.
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    Make sure you get the right insurance for your property. There are many different landlords insurance policies available. The cover ranges from landlords building insurance (which usually provides cover for perils such as floor or fire) to landlords contents insurance (which usually covers for perils such as fire, malicious damage or theft or malicious damage) up to a fully comprehensive landlords insurance policy, which may include cover for such things as loss of rent and legal expenses. Many policies also offer property owners liability to protect the landlord against liability claims made by a tenant; for example if the tenant fell down the stairs. In the event of such a claim being made by the tenant, the property owners liability section of a landlords insurance policy would usually provide cover.
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    Find out what is covered under a landlords insurance policy. Most landlords insurance policies have two main elements to them. The majority of any expense is in respect of insuring the building’s structure. Most landlord insurance policies also cover fixtures and fittings. This refers to items such as carpets, bathrooms, kitchens, white goods, curtains and light fittings. This cover is usually adequate for most landlords when letting out a property that is unfurnished. However, you should always make sure that the landlords insurance policy has provision for cover against accidental breakage of fixed glass, such as windows, and sanitary fittings. These are one of the most common areas of damage and subsequently potential claims on landlord insurance policies. Landlords can also separately insure any contents in the property such as furniture. Again though, the landlords insurance policy will only protect you against damage by the tenants and not property theft.
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    Calculate the building's cover for the type of property insurance. Several factors determine the level of landlords insurance buildings cover relating to the rebuilding cost of the property. You can carry out an estimation for a landlords insurance quote using the Building Cost Information Service (BCIS) which is part of the RICS. This calculator takes into account the area that the building to be insured is in, the type of property and its construction. It then creates a reinstatement value on which the level of landlords insurance you need can be based.
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    Have the basic information about your property on hand before calling the insurance company. You should know the age of the structure, including the plumbing and electrical systems; the kind of roof; the dwelling's square footage; and the number of insurance claims, if any, that were filed within the last five years.
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    Evaluate your landlords policy every year to determine if it needs updating. Any remodeling or upgrades to existing structures must be reflected in your policy to ensure you have adequate coverage.


  • The landlords insurance should be with a reputable company at an affordable and competitive premium and the insurer should be one which deals with all claims as quickly and efficiently as possible.
  • Many insurance companies provide free quotes.
  • Make the most of the internet by comparing prices of landlords insurance policies.


  • A landlords insurance policy is not a legal requirement, although not owning one is a very risky choice! Renting out a property without having adequate landlords insurance would be extremely foolish. Any number of things could happen while the property is being rented out and no landlord would want to find themselves in a position where they are totally unprotected because they have no insurance in place and, as a consequence, substantially out of pocket.
  • Don’t under-insure in the mistaken belief that it won’t matter and that you’ll save money. It can be very tempting knowing that you could save some money by under-insuring but if disaster does strike you could find yourself having to pay out many thousands of pounds to cover any damage that has been caused. It is never worth the risk. ALWAYS make sure you have adequate landlords insurance in place.
  • Make sure you check the level of your excess in the landlords insurance policy. The excess is the amount of the claim that you would be required to pay on your landlords insurance. The rule of thumb is that generally the higher the excess on the landlord insurance, the cheaper the landlord insurance policy. You shouldn’t, however, go for too high an excess as this would preclude making any claim for many of the more numerous, smaller items. An excess of around £100 is an average amount for landlords insurance.
  • Most landlords insurance policies exclude theft by the tenant. Theft is only usually covered by landlord insurance if there has been ‘violent or forcible entry or exit’. This means that, for example, if your tenants left with any items, appliances or fixtures then the policy would provide no cover for that. For that reason, making sure that you have an adequate deposit is vital.
  • Most companies will automatically index-link a landlords insurance policy to make sure that the reinstatement value is maintained in subsequent years. This is well worth checking out when you take the landlords insurance policy out.

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Categories: Insurance