Landlord insurance is essentially different from a regular home insurance policy. Homeowners not only insure their main residence building, but they also insure their personal belongings.
Nevertheless, a landlord is essentially a businessman, and the occupant is just a consumer for him. The hazards that required to be insured against are almost similar to home insurance, because they consist of protecting the building against usual damages, like fire breakout, robbery, and damage or weather hazards. But, landlord insurance also covers daily used things such as kitchen fittings and machines, etc.
According to a report “Landlord Insurance in UK- Top trends and Opportunities 2018”, the worth of landlord insurance market is GBP2.5 billion per annum. The growth in the sector has sustained even during the economic recession. And this trend is likely to continue in the future.
But as the time changes, so do the trends in the market. With the technological advancement, the businesses have evolved. Emerging technologies are transforming most aspects of the insurance business.
Insurance firms are also incorporating digital proficiencies and striving to automate the industry. Following are the seven trends, you as the landlord might be missing, due to technological advancement and changing business models.
- New Business Models
The new business models are exploring the areas which were unexplored in the past. These models are based on evolving customer needs, and they try to bridge the gap that technology has created. Noe, the social media monitoring of customers, is also becoming part of the insurance policies of these firms.
- Role of Drones
During catastrophic events, the manual inspection of roofs etc. poses huge risks. To counter this risk, the firms are now using drones to take high-resolution photographs of the damaged property. The photos taken by drones can be used for damage assessment.
The images taken by drones are helpful in providing an accurate picture of the damage to property, and the assessment of the damage can be more accurate than the past.
- House Prices
According to data published by Savills the house price growth to slow in 2019, “as uncertainty weighs down the market.” According to the report, Brexit has made an impact on the economy and house prices are not likely to increase much.
It would leave no option for property owners, but to rent out their property. They definitely would not like to sell their property at cheap prices. In fact, they will choose to earn by renting their property.
- Inflation Rate
While taking a landlord insurance, keep in mind the inflation rate. Now it has become a trend to incorporate the inflation price in the insurance policy. Most of the landlords might miss this point while deciding the insurance policy. But, this is a vital point to keep in mind.
- Increase in Rents
Over the next five years. UK rents are expected to rise by 15%. The supply of rental housing reduces while demand from tenants remains higher. According to the Office for National Statistics (ONS), the amount of rent in the private rented sector has risen by 1.6 percent in 2018.
This trend provides a large number of business opportunities for the landlords. They have a number of choices available to rent out their property.
- Increase in Demand for landlord insurance
As the rent is likely to increase in the private rental sector, it is also likely to have augmented the need for landlord insurance. Also, the prices of property are not likely to increase much; the landlords prefer to rent out their property to tenants.
It leads to increasing demand for the landlord insurances to avert or avoid risks related to renting the property to tenants. Because, of course, the landlords need to play safe.
7- Flood Insurances
Due to the global warming and drastic climate and weather changes, the flood insurance has become a new trend in the insurance policy. Now, the insurance companies also cover the cost of flood damages or climatic damages. Property owners can add the damages caused by heavy or flash flooding in their insurance claims.
Keeping up with these the latest trends keep the property owners updated about the trends in the industry. It helps them to make better decisions and chose the insurance policy which is beneficial for them and also caters to their needs.