THE QUICK by niusheng11

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									LandLords’ Insurance



The QuIck.
A quick reference guide
for professional use only.
This handy guide is packed with
lots of quick reference landlords
insurance information including
facts and figures about the
current market and its customers,
an overview of Legal & General’s
cover options and useful ideas
about how you can add value to
your customers.




In ThIs GuIde:

About the landlords
                                3
insurance market
About landlords
                                9
insurance customers
About Legal & General’s
                               14
Landlords’ Insurance Product

Overcoming objections          21
      abouT The
      LandLords
      Insurance
      markeT.

      In ThIs secTIon:

      Did you know?                                  4


      The current marketplace                        5


      Opportunities for the future                   6


      What landlords want                            7

      How you can add value                          8




      3.3 mILLIon prIvaTeLy
      renTed dweLLInGs In
      The uk In 20081

1
    Source: Mintel, Department of CLG, HM Treasury
4     About the LAndLords insurAnce mArket




      dId you
      know?




       T
    •	 	 otal	landlords’	insurance	market	
       was estimated to be worth between
       £600- £800 million in 2010
       T
    •	 	 here	are	nearly	2.5	million	private	
       rented dwellings in the UK with
       landlords insurance
       T
    •	 	 ypical	premiums	are	on	average	
       £300 a year
       M
    •	 	 arket	set	to	grow	to	over	three	
       million polices by 2013
       M
    •	 	 arket	opportunity	estimated	at	
       £165 million each year through
       policy holders switching providers
       T
    •	 	 here	are	approximately	1.4	million	
       landlords in the UK
       M
    •	 	 ost	landlords	have	fewer	than	five	
       properties in their portfolio
       L
    •	 	 andlords	tend	to	be	affluent	
       professionals
5         About the LAndLords insurAnce mArket




          The currenT
          markeTpLace.




    	 	 	 irst	time	buyers	are	still	priced	out	
    • F
        of the market, increasing demand for
        rental property
       T
    •	 	 he	uncertain	economic	climate	
       means that potential home buyers
       are staying longer in rented property
       as mortgage lenders impose
       stringent lending conditions
       O
    •	 	 ne	in	five	landlords	have	tenants	in	
                    2
       rent arrears
       I
    •	 	t’s	estimated	that	39,000	people	
       will be looking to the rental market
       for somewhere to live following
                              3
       repossessions in 2011
       I
    •	 	ncreasing	regulation	such	as	the	
       Housing Health and Safety Rating
       System and the redefinition of
       Houses in Multiple Occupancy, has
       led to increasing costs which may
       dissuade smaller landlords from
       staying in the marketplace.




    2
        National Landlords Association 2010
    3
        Council of Mortgage Lenders
6     About the LAndLords insurAnce mArket




      opporTunITIes
      for The
      fuTure.




    	 	 	 uy	to	let	lending	rose	12%	in	2010	
    • B
        which equates to 1.29 million buy to
        let mortgages
       7
    •	 	 0,000+	new	buy	to	let	mortgages	
       each year
       T
    •	 	 he	rate	of	growth	in	landlords	
       insurance started to increase from
       the end of 2010
       B
    •	 	 y	2012/13	growth	in	the	market	for	
       landlords insurance is predicted to
       return to 2008 levels
       A
    •	 	 verage	portfolio	sizes	could	increase	
       as smaller landlords leave the market
       8
    •	 	 5%	of	landlords	still	believe	property	
       is a good long-term investment
7     About the LAndLords insurAnce mArket




      whaT
      LandLords
      wanT.




    •	 Comprehensive	cover
       F
    •	 	 lexible	features	that	include	
       specialist options such as legal
       expenses	and	rent	guarantee	
       Q
    •	 	 uality	is	more	important	than	price
       C
    •	 	 lear	choices	and	an	easy-to-
       understand policy
    •	 Cover	from	a	reputable	provider
    •	 Excellent	customer	service
    •	 Efficient	claims	handling
8     About the LAndLords insurAnce mArket




      how you can
      add vaLue.




       E
    •	 	 nsure	landlords	are	not	
       underinsured
       L
    •	 	 andlords	all	have	different	
       requirements and need specialist
       advice; therefore, most landlords
       insurance is sold through advisers
       like you
       R
    •	 	 eview	cover	regularly	as	business	
       needs change
       M
    •	 	 ake	sure	your	customers	understand	
       about the additional cover options
       that are available to them
abouT
LandLords
Insurance
cusTomers.

In ThIs secTIon:

Facts	about	landlords      10


Know your customers        11

What your customers
                           12
should consider

Useful facts and figures   13




70,000+ new buy
To LeT morTGaGes
each year
10         About LAndLords insurAnce customers




           facTs abouT
           LandLords .                           4




        L
     •	 	 andlords	tend	to	be	affluent	
        professionals and people earning
        over £50,000
        T
     •	 	 he	most	likely	age	group	to	own	a	
        rental property is 35-44 year olds
        1
     •	 	 .2	million	people	own	a	property	
        that they rent out
        9
     •	 	 2%	of	landlords	think	that	house	
        prices will stay the same or
        grow slightly




     4
         Mintel	Buy-to-Let	Finance	Intelligence	March	2010
11         About LAndLords insurAnce customers




           know your
           cusTomers.




        A
     •	 	 s	many	landlords	use	their	rent	as	
        income, it makes sense to protect
        their livelihood
        L
     •	 	 andlords	insurance	is	a	simple	way	
        for customers to protect a valuable
        investment
        C
     •	 	 ustomers	want	a	policy	that	is	easy	
        to set up and renew
        A
     •	 	 ccidental	damage	cover	for	
        buildings and contents can provide
        additional peace of mind
        E
     •	 	 ven	when	landlords	are	often	
        motivated by price, they prefer
        to have the option of more
        comprehensive cover rather than to
        drive down premiums
        A
     •	 	 	sharp	increase	in	renters	seeking	
        help with eviction5 could pose a
        problem for landlords
        L
     •	 	 andlords	want	a	reputable	provider	
        with an in-depth understanding of the
        market. Legal & General have been
        involved in property insurance for
        over 60 years

     5
         Best	Advice	2010
12     About LAndLords insurAnce customers




       whaT your
       cusTomers
       shouLd
       consIder.



     make sure your customers are not
     under insured. they should review
     their cover as their needs change.

        H
     •	 	 ow	many	properties	do	they	have?	
        Multiple properties can be insured on
        one policy, with one common renewal
        date	and	discounts	of	up	to	10%
        D
     •	 	 o	any	of	the	properties	require	
        contents cover? This can be part of the
        same policy
        O
     •	 	 ften	contents	are	underinsured,	
        so replacement values should be
        regularly checked
        P
     •	 	 roperty	owners’	liability	cover	is	
        crucial in case a tenant claims an
        injury was a result of their negligence
        R
     •	 	 ent	arrears	can	be	a	serious	issue,	so	
        a	legal	expenses	and	rent	guarantee	
        option is important
13       About LAndLords insurAnce customers




         usefuL facTs
         and fIGures.




        L
     •	 	 andlords	suffer	from	average	rental	
        arrears of £8006
        4
     •	 	 7%	of	possessions	by	landlords	are	
        for non-payment of rent6
        O
     •	 	 ne	in	five	landlords	have	tenants	in	
        rent arrears6
        T
     •	 	 he	2007	summer	floods	generated	
        £3 billion of claims7
        I
     •	 	n	2009	the	average	fire	claim	for	
        domestic properties was £8,0007




     6
      National	Landlords	Association	2009/10
     	Association	of	British	Insurers
     7
  abouT our
  LandLords
  Insurance
  producT.

  In ThIs secTIon:

  Buildings	cover	summary          15


  Contents cover summary           16


  Optional	extra	cover             17


  Discounting and Tenant Type      18

  Why work with us                 20




As with all insurances there are things
that	aren’t	covered.	For	more	details	
please	see	the	Key	Features	Document.




  90% of prIvaTeLy
  renTed dweLLInGs
  wILL have LandLords
  Insurance
15     About LAndLords insurAnce Product




       buILdInGs
       Insurance
       aT a GLance.




        M
     •	 	 ulti-property	servicing	and	
        discounting
        R
     •	 	 ebuild	costs	up	to	£800,000	or	sum	
        insured alternative
        A
     •	 	 ccidental	damage	to	underground	
        pipes or cables
        A
     •	 	 ccidental	damage	to	fixed	glass	or	
        sanitary ware
        £
     •	 	 40,000	loss	of	rent	or	alternative	
        accommodation following a
        successful claim
     •	 £5,000	trace	and	access	cover
     •	 £150	home	emergency	cover
        P
     •	 	 roperty	owners	liability	up	to	
        £2 million
     •	 Legal	helpline
     •	 4	star	Defaqto	rating
16      About LAndLords insurAnce Product




       conTenTs
       Insurance
       aT a GLance.




        C
     •	 	 overs	household	goods,	furniture,	
        fixtures	and	fittings	from	£5,000	to	
        £35,000
     •	 Theft	of	keys	up	to	£750
        O
     •	 	 utbuildings	cover	up	to	5%	of	sum	
        insured (minimum £1,000)
     •	 Communal	contents	up	to	£1,000
        L
     •	 	 egal	liability	to	third	parties	up	to	
        £2 million
     •	 Contents	in	the	open	up	to	£500
        C
     •	 	 ontents	sum	insured	automatically	
        keeps	pace	with	inflation
     •	 Legal	helpline
     •	 4	star	Defaqto	rating
17     About LAndLords insurAnce Product




       opTIonaL
       exTra cover.




        A
     •	 	 ccidental	damage	and	malicious	
        damage by tenant cover for both
        buildings and contents
        L
     •	 	 egal	expenses,	rent	guarantee	and	
        squatters cover:-
     	 -	Legal	expenses	up	to	£50,000
      - Rent guarantee up to £2000 per
        month up to 12 months
      - Squatters cover for negotiation of
        rights regarding eviction of squatters
18     About LAndLords insurAnce Product




       dIscounTInG
       and TenanT
       Type.




     dIscounTs
     If your client has more than one property
     they can benefit from discounts based
     on	portfolio	size:


        number of             %dIscounT
        properTIes             appLIed

               1                   0%

               2                   5%

               3                   6%

               4                   7%

              5-9                  8%

             10-19                 9%

             20+                   10%


     Details correct at time of print and may
     be subject to change.
     Eligibility	and	acceptance	criteria	apply.	
     Please refer to your quoting system or
     the underwriting guide for details.
19     About LAndLords insurAnce Product




       dIscounTInG
       and TenanT
       Type.




     TenanT Types
     We use an enhanced question set to
     include capture and rating of tenant type
     on new business:


         TenanT Type              raTInG

            Employed               Accept

           Unemployed              Accept

          Retired/Private          Accept

             Student               Accept

           Unoccupied              Accept

        Holiday/Company             Refer

         Asylum	Seekers/
                                   Decline
            Refugees

        Local	Authority/
            Housing                Decline
        Association/Govt


     Details correct at time of print and may
     be subject to change.
     Eligibility	and	acceptance	criteria	apply.	
     Please refer to your quoting system or
     the underwriting guide for details.
20     About LAndLords insurAnce Product




       why work
       wITh us.




        R
     •	 	 ecognised	and	trusted	brand
        F
     •	 	 inancially	strong	–	over	6.9	million	
        people rely on us for their insurance,
        pensions and investments as of
        June 2010
     •	 Value	for	money	cover
     •	 Dedicated	UK	call	centre
        R
     •	 	 eputation	for	efficient	claims	handling
        C
     •	 	 laims	settlement	flexibility.	Clients	
        can choose cash settlement, so they
        can source their own repair company
        I
     •	 	mmediate	claims	settlement.	Some	
        claims settled on the first day with
        funds paid within three days
        M
     •	 	 ulti	property	servicing	and	
        discounting	based	on	portfolio	size
        S
     •	 	 ingle	point	of	communication	and	
        premium collection with common
        renewal date
overcomInG
objecTIons.




ToTaL LandLords
Insurance markeT
was predIcTed To
be worTh beTween
£600 and £700
mILLIon In 2010
22     overcoming objections




     “I aLready have cover.”
     It’s very important to make sure you
     have enough cover as you don’t want
     to find you are underinsured when you
     make a claim. When was the last time
     you reviewed your cover?

     “LeGaL & GeneraL’s cover
     doesn’T provIde aLL The
     feaTures I need”
     Legal & General have recently launched
     a new 4 star Defaqto rated product,
     with new features. Why don’t I go
     through it with you and you can then
     compare.

     “I’m happy wITh my
     currenT provIder.”
     Legal & General provide a
     comprehensive level of cover. Some
     claims are settled within one day, which
     is just the sort of service you need
     when you’re relying on the property
     rent for your income. Let me provide
     you with a quote to see how they
     compare with your current provider.

     “I’ve jusT renewed.”
     That’s fine. Would you mind telling
     me how much your annual premium
     was? Maybe I can provide you with a
     more competitive quote from Legal &
     General and you may find it is better
     value for money.
23     overcoming objections




     “I haven’T GoT TIme Today.”
     When would be convenient to speak
     to you about your landlord’s cover?
     It’s important that you have the right
     cover, just in case.

     or

     I can give you an indicative quote in a
     few minutes. What’s the postcode of
     the property?

     “I’m noT The rIGhT person To
     speak To abouT ThIs…”
     Okay, would it be possible to speak
     to whoever is responsible for your
     insurance now? If not, I’d be happy to
     call back at a more convenient time.
     How about (suggest time)?

     “I’ve had a QuoTe before and
     you were Too expensIve.”
     It’s worth getting another quote as
     rates change from time to time. I could
     provide you with a new quote and we
     can compare the cost and cover to
     your	existing	insurance;	you	may	be	
     pleasantly surprised.

     “you won’T be abLe To beaT
     my QuoTe!”
     Your current premium may be low but
     what does it cover you for? We can
     also	offer	discounts	of	up	to	10%	for	
     multiple properties. Let me go through
     your quote with you and see if I can
     provide the type of cover.
24     overcoming objections




     “wILL IT cover whaT my
     currenT poLIcy covers?”
     Legal & General’s cover is
     comprehensive. It covers many
     things as standard that you may have
     to pay for with cheaper insurance
     policies. They include loss of rent and
     alternative accommodation of up to
     £40,000 as standard. How does this
     compare	to	your	existing	cover?

     “IT Takes Too LonG To sorT
     ouT / I can’T be boThered.”
     I can assure you it won’t take long. In
     fact, I can give you an indicative quote
     in a few minutes. What’s the postcode
     of the property?

     “I’LL be charGed To swITch
     from my currenT provIder.”
     It’s possible there will be an
     administration charge to switch
     provider, but look at the overall saving.

     or

     It’s possible there will be an
     administration charge to switch
     provider, but if their cover isn’t
     comprehensive enough for your
     requirements and you needed to make
     a claim, you’d be underinsured and it
     could cost you personally.

     “can They cover muLTIpLe
     properTIes?”
     Yes, Legal & General offer multi-
     property servicing and discounting.
25     overcoming objections




     “IT’s Too compLIcaTed To
     expLaIn my Insurance
     reQuIremenTs now.”
     If	you	have	complex	requirements,	
     it’s very important they are properly
     assessed; otherwise you may not be
     fully insured. Rather than go through
     them over the phone, I can make an
     appointment to come to your office to
     review your requirements.

     “I’LL ThInk abouT IT.”
     Is there something that’s stopping you
     from taking this insurance? Maybe I
     can	go	through	it	with	you	to	explain	
     the benefits.
conTacT us

gienquiries@landg.com
or contact your usual Legal & General
representative.




Legal & general insurance Limited.
Registered	in	England	No.	00423930.	
Registered office: One Coleman Street,
London	EC2R	5AA
Authorised	and	regulated	by	the	Financial	
Services Authority
CW1960	02/11

								
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