Landlords! Does your insurance cover the new energy rules?
The new energy performance regulations have been finalised by the Department for Business, Energy & Industrial Strategy and come into force in England and Wales in 2018, which means landlords should be acting now to ensure they are compliant.
Under the new regulations, landlords will need to meet Minimum Energy Efficiency Standards (MEES), which require a building to have at least an ‘E’ rating Energy Performance.
Up to half of all landlords still need to assess the risk profile of their property portfolio.
Certificate (EPC). This is based on CO2 emissions for commercial property and fuel costs for domestic property. General awareness of the new MEES is estimated to be low, with up to half of all landlords still needing to assess the risk profile of their property portfolio. In the case of landlords with a large portfolio of properties, it is a dangerous strategy to wait until 2018 to carry out a property review. The changes mean it will be unlawful to rent out a commercial or residential property that does not comply with the new regulations and there will be a financial penalty of up to £4,000 to pay. Failure to comply could also potentially affect the value of the property and damage your reputation.
The first step to take is to assess the current EPC rating for each property in your portfolio. This may pose more of a problem for landlords with smaller portfolios, as they won’t have consultants or maintenance teams in place to advise and assist. Such customers will require advice on whether their properties comply and how to instigate the necessary
changes and obtain a new EPC. A property with an ‘F’ or ‘G’ rating could cause problems.
We can work with you to ensure you have the right property cover for your property portfolio and importantly ensure that you are not under-insuring your risks.