Property owners need to check out the small print in their insurance policies to make sure they are actually covered for all eventualities.
Somewhere in the schedule, the insurer will spell out that the policyholder must disclose any information that might affect the terms of the policy.
For plain speakers, this means the insurance company has the right not to pay out if the property investor has failed to tell the company about any changes that have occurred since the policy was taken out.
"One of the most popular reasons for invalidating a policy was bringing in unqualified builders or carrying out DIY work," said Paul Allison, of Student Landlord Housing (Link: http://www.studenthousing.co.uk)
"This means check out any builder or tradesman has accidental damage and liability cover . The only way to be sure a builder has adequate cover is to get a copy of their policy and send the details to your insurer to confirm everything’s OK before work starts."
Starting work before clarifying insurance cover can invalidate building and contents insurance and any claim might be refused, for instance:
* Some policyholders failed to tell their insurers about work on their properties and have had claims refused for water damage caused while builders were replacing roof tiles and rain poured in during a storm.
* On the other hand, DIYers have damaged their homes by knocking out retaining walls or dropping hammers in the bath and had claims refused because their policies stipulate that competent, professional builders must complete certain work, like structural alterations.
* Some building work, like changing doors and windows may lead to an extra premium if your insurer feels the risk of a break-in is increased by the work, especially if this means a property is left open during building works.
Honesty is the best policy when dealing with an insurance firm, even if it means employing a more expensive builder or tradesman.
