Homelet was founded in 1992, is based in Lincoln and employs several hundred employees. It operates principally as a tenant referencing service for landlords and for the lettings industry in general. In this respect it claims to be one of the UK’s leading companies and currently takes up references on some 20% of all private tenancies.
In the past three years, Homelet claims to have taken up references on some one million tenants and continues to support a network of more than 3,000 lettings agents.
In its 20 years or so of operations the company has branched out into support for the lettings industry and for landlords more generally, including the provision of landlord insurance. Homelet’s principal objective is safeguarding the rental income of private landlords operating in a hostile economic environment. It currently claims to be protecting approximately £143 million worth of rental income.
Home insurance or landlord insurance?
Since both the principal objective of this general class of insurance is the protection of the structure and fabric of a residential building, and often its contents, is there much to choose between standard home insurance and landlord insurance?
There are in fact some important reasons for making a clear distinction:
- any mortgage lender is likely to insist that you have landlord insurance if you let your property;
- if a tenant or an employee of yours suffers an injury, you may be held liable for a breach of your duty of care – in which case claims in damages may be very high and you may be grateful for landlord’s insurance which may incorporates both landlord liability cover and employers’ liability cover;
- following an insured event and the property becoming uninhabitable, you are likely to lose rental income from your tenants – landlord insurance may typically provide some degree of compensation;
- standard home insurance covers a property that is owner occupied whilst landlord insurance covers a property occupied by tenants, who may damage that property and who may default on their rent – landlord insurance may be designed to address both these problems.
Homelet landlord insurance
Landlord insurance arranged by Homelet covers buildings and contents in much the same way as standard home insurance.