Modus Landlord Insurance
Modus is a reasonably new company established in 2015, aiming to provide landlord insurance products via insurance intermediaries like agents and brokers. The Modus Landlord Insurance managing director, Simon Reed, ensures that all of the requirements of their customers are met and that the products are of a faultless standard. These products include commercial property, unoccupied commercial property, residential property, short-term residential property, and flood excess covers.
These covers help to ease the landlord, the owner of these properties, whilst they either rent out the buildings or await potential clients. If you would like to read more information or learn more about the pricing of business landlord insurance, you can do so here .
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Products Available Through Modus Landlord Insurance
Currently, Modus offer five covers for landlord insurance; these are based on whether the type of property is residential, like a flat or house, or commercial, like an office space.
Commercial property cover
The commercial property cover is aimed at landlords that rent commercial spaces like offices and retail shops or any other places where buying and selling occurs, and so it is labelled a business premise. Generally, this type of cover protects the physical structures of the building if they were to be destroyed by a fire, explosion, vandalism or natural disasters like floods or storms. Moreover, Modus landlord insurance ensures these commercial properties for up to £2 million and £5 million for indemnity and £25,000 for fraud. This cover can also insure multiple properties at once for successful landlords.
The landlord can choose the duration of the cover, like 3-, 6-, and 12-month policies are available. Additional policies can be added onto this insurance if so desired by the landlord, including legal expenses cover should any lawsuits arise. Furthermore, tenant eviction costs can exceed £275 worth of notice in the UK. It should be noted that commercial properties that are vacant for the time being require a different cover, as stated below.
2. Unoccupied commercial property cover
Unoccupied commercial property cover is similar to commercial property cover but is beneficial because the building does not currently have tenants or is unhabitable as it is presently undergoing renovations. This cover is usually costlier as a vacant building poses more of a risk to insurers due to the likelihood of vandalism and other issues with the fittings, which would remain unnoticed as there is no one present to report them.
Like standard commercial property, there are 3-, 6-, and 12-month policies available, up to £2 million of cover and £25,000 fraud cover. Supplementary covers like the aforementioned legal expense cover, terrorism cover, which protects against property damage and loss of income in an attack, and cyber cover to help the landlord recover should they be victim to a hacker. However, unlike standard commercial property insurance, this type of cover only insures one building.
3. Residential property cover
Residential property cover is for a building used solely for living and not business purposes. They are cheaper to insure because they are often smaller and pose less of a risk to the insurer, as they are better cared for and are not used socially, whereby many people enter daily like a commercial building. Usually, they are inhabited by families. As a result, Modus insures residential properties for up to £750,000 for one or multiple properties.
These buildings can be either vacant or occupied, and the tenants can be a range of people from students using the accommodation or those with benefits from the government. This policy includes subsidence cover from damage caused if the ground sinks, loss of rent cover for 20% of the loss incurred if the building becomes unliveable by an insured cause, and £25,000 worth of fraud cover. Like the above insurances, 3-, 6-, and 12-month policies are available and optional additional covers like legal expenses, terrorism, or cyber covers.
4. Short-term residential property cover
Short-term residential property cover protects the buildings being leased for, generally, less than six months. This could include vacation rentals for customers looking to stay in a property for one season or workers on a business trip. This type of property is only insured for up to £500,000; however, they are usually smaller and do not require as high a payout. Furthermore, Modus only offers this cover for single properties.
Additionally, Modus offers this cover for buildings undergoing renovation or awaiting sale. The cover is available on three levels depending on the severity of coverage required by the landlord and can be obtained for up to one month. Based on its current situation, the building can be either occupied or unoccupied, allowing all tenants.
5. Flood excess cover
Flood excess cover is the last type of insurance Modus offers at the moment, the insurer being XL Catlin Insurance Company Ltd.
As suggested by its name, it recompensates a business for any damage a large flood could create, from destroying the infrastructure and fittings of the property to ruining the contents like furniture and equipment inside. It must be obtained in addition to the flood cover in the property insurance policy. Modus offers up to £100,000 of flood excess cover, which can assist a landlord that would otherwise have to pay this money out of profits.
The product is offered by referral, so if buying online, the maximum cover is only up to £50,000. It is available for all properties in the United Kingdom but may be more costly if close to a body of water like the lake. Unfortunately, this cover is offered only to properties with only one claim in the last five years, which may cause an issue.
Modus Landlord Insurance
To conclude, Modus landlord insurance consists of 5 different types of insurance. Each is useful to different landlords based on the type of properties they lease, more specifically, whether they are commercial or residential. Modus does not sell the public. Thus, an insurance intermediary must be appointed before considering and committing to research to find the best fit for the buildings, as with any form of insurance. Generally speaking, having a cover will assist a landlord with the high costs of repairing the properties and should be considered. If you’re looking for Law firms in Solihull, be sure to take a look at Pearce Legal. They offer a range of great services including family law, probate and conveyancing and will be sure to have whatever you need!
Find out more about the importance of insurance here .
Other useful links about Business Insurance:
Churchill Business Insurance
Hiscox Business Insurance
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