Property investors are always on the look-out for the next growth area - and Christmas certainly shouldn't get in the way
In fact, it’s a great excuse to think outside of the box on your investment strategy – for instance by considering a mixed-use property comprising of a toy factory and logistics warehouse, with serviced accommodation apartments set aside for the seasonal workers – who all seem to favour red and green attire...
Yes, the underwriting team at Simple Landlords Insurance have drawn on their expertise to imagine what it would cost to take out a policy on the most famous of Christmas properties – Santa’s Workshop.
Not content to stop there, they’ve also considered all the risks to come up with quotes for some other famous winter properties - including Queen Elsa’s Frozen castle, Castle Black from Game of Thrones, and Pingu’s igloo home in the Antarctic.
These quotes are purely for entertainment purposes! But it might help landlords think about their risks applying to their own investments, and what to think about when taking out or renewing landlord insurance in 2018…
This mixed-use property in the sought after North Pole is both a business and home for at least part of the year to a number of professional working tenants.
The business itself – a toy factory – is owned by Mr S. Claus and has its own insurance – but you will need extra insurance to cover the residential areas.
At this time of year there is often heavy snowfall (and heavy reindeer) – and it is therefore recommended the roof is inspected carefully by an expert as part of your initial survey.
The property has several open fires, and these chimneys will need checking, and fire safety equipment and procedures will need updating in line with the latest legislation.
Please note: some of the external walls appear to be constructed from gingerbread, which might not meet local building regulations, and may need to be replaced. Full address details are available on request.
· Insurance: £2,500 annually. Excludes damage caused by Freezing of Pipes as well as Impact by Animals. Optional extras include Goods In Transit cover.
· Price: £450,000
· Rent: £21,000pa (£1,750pcm)
· Yield: 4.7%
Queen Elsa’s Castle
A beautifully constructed, spacious, 28-bedroomed castle across multiple levels, overlooking the bustling kingdom of Arendelle. Viewing is essential.
The tenants are an enormous snow monster prone to fits of rage and throwing people off mountains, and a local VIP with erratic ice-powers who uses the property as an occasional retreat. (Accidental and Malicious Damage cover are highly recommended).
There are some unusual construction materials which will need to be disclosed to your insurance company. The highly polished floors can also be slippery, and public liability insurance is a must.
There is no central heating, but the cold never bothered the current tenants anyway. (We suggest any incoming landlord let it go). Please note that access is limited, via a narrow ice staircase.
· Insurance: Same as last year – premiums have been Frozen…
· Price: £1.2m (recommend winter sale only)
· Rent: £30,000pa (£2,500pcm)
· Yield: 2.5%
A surprisingly beautiful, if bleak, 8,000 year-old property with marvellous views over the Wall, situated at the northern end of the Kingsroad in Westeros.
Currently run as a House of Multiple Occupation (HMO), there has been some conflict (and the occasional sword injury) amongst the current residents. However, they have now had to unite against a greater enemy (though you may wish to install extra PAT-tested equipment in each room to reduce the time tenants have to spend in communal areas).
The tenants sometimes go over the Wall and don’t come back, so it might be worth looking into Rent Guarantee cover.
The property is also in some danger of attack from both Wildlings and White Walkers, but has state of the art security systems - including the aforementioned 700 foot wall, lots of gates and chains. Landlords may wish to consider a burglar alarm, and maybe some extra lighting - so tenants can actually see what they’re doing.
· Insurance: £20,000 annually. Excluding Malicious Damage and Riot cover. Increased excess for Frost damage
· Price: £250,000,000
· Rent: £5,000,000pa (£416,667pcm)
· Yield: 2%
This compact, classically built little property is curiously spacious inside, and situated in the middle of the beautiful Antarctic wilderness.
It is the long-term home to a lovely professional working family, who don’t say very much, but always pay the rent on time. (Occasionally in fish).
The younger members of the family are prone to innocent mishaps and shenanigans, and Accidental Damage cover is highly recommended.
Check your insurance policy allows this type of construction – and this is one of the few times your insurer would recommend the heating is NOT kept on during the winter months!
· Insurance: £250 annually. Cover excludes Accidental Damage caused by Irons
· Price: £120,000
· Rent: £9,500pa (£790pcm)
· Yield: 7.9%