At Total Landlord Insurance we constantly strive to have our fingers on the pulse within the landlord insurance marketplace, reporting on news stories and developments from the world of buy to let cover.
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Increase of Insurance Premium Tax from 1 November 2015
4 September 2015
Total Landlord Insurance would like to inform customers that, in this year’s budget, Chancellor George Osborne announced the increase of Insurance Premium Tax (IPT) from 6% to 9.5% from 1 November 2015. The increase of tax is separate from the price of premiums, which is calculated on risk, and insurers will not benefit from the increase of the tax they’re collecting for the government.
It is feared that consumers will cut costs by taking out less coverage and that the move will be highly detrimental to them, should any damage arise that is not covered by their reduced policy. The increase feels “counterintuitive” after working closely with the government to bring down the cost of insurance, which included a summit chaired by the prime minister, according to Steve White, CEO of British Insurance Brokers’ Association (BIBA). However, the tax is still considerably lower than the 20% VAT.
Eddie Hooker, CEO of Total Landlord Insurance cautions consumers not to jeopardise their insurance cover in an attempt to rebalance their premium by reducing sums insured or the level of their cover instead. Consumers could be risking potential underinsurance and having to foot the bill for damages themselves in the event of a claim.
If our policyholders have any queries or concerns, please contact the Total Landlord Insurance team on 0800 63 43 880