Aviva issues property owner insurance warning

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Aviva issues property owner insurance warning

Thu 14th Jan 2010

Aviva has warned property investors that they should make sure they have adequate legal expenses insurance in case one of their lodgings is infiltrated by squatters.

Mike Colmans, underwriting manager at the company - which is the world's fifth largest insurance group - said that obtaining interim possession orders to get rid of unwanted residents can be "significantly costly".

However, getting the right type of cover is not enough to protect landlords from squatters on its own, he suggested, pointing out that some insurers will not pay out if they feel appropriate steps have not been taken to secure the property and stop people from entering in the first place.

"It is imperative that adequate measures are put in place to prevent squatters from entering and taking ownership, as it can be notoriously difficult to remove squatters," Mr Colmans commented.

LandlordZone recommends that property owners speak to their insurance providers when accommodation is going to be empty, as vacant lots generally attract higher premiums.

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