Dublin’s “accidental landlords” who have rented out rooms or properties are exposed to a huge financial hit, experts have warned.
Leading home insurance specialists at www.insuremyhouse.ie say there could be trouble down the line in relation to claims made by those renting their homes out without the correct cover in place.
The experts claim that many homeowners have, in recent years, rented out rooms or indeed the entire property as a source of income.
While this may have made good financial sense at the time, Jonathan Hehir Managing Director of www.insuremyhouse.ie has now issued a warning.
We’ve seen this cohort of people struggling to get insurance claims paid due to their failure to notify insurers of the ‘change of purpose’ of the property or of a change in tenant profile.
Most recent statistics from the Residential Tenancies Board (RTB) reveal there are a total of 323,271 tenancies registered, representing 172,121 landlords and 704,332 occupants.
The number of landlords in the country is growing, with the number of new registrations with the RTB for Q2 2016 alone standing at 22,103.
While some of these would be classed as ‘professional landlords’, many are simply people with only one or two properties to rent, who may not be very adept at their new “occupation” or are not sure of what they need to do.
We suspect that a significant proportion of these landlords have the incorrect insurance in place.
If the house was to flood, or if a tenant decided to make a claim against the homeowner’s policy, the policy holder is left wide open if they do not have the correct insurance policy in place.
Data from the most recent RTB Rent Index confirms that the capital remains the largest rental market, with Dublin post codes accounting for close to one third of properties on the market.
Insuremyhouse.ie has revealed that renting your property to a family is a safer financial proposition as home insurance for these properties represents best value.
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