Effective insurance is largely about buying the cover which is appropriate for your particular, individual needs and circumstances – landlord insurance for one buy to let owner, for example, might look quite different to another’s.
But given the often tight profit margins within which landlords operate, the price of insurance by no means takes a back seat. Price is an important consideration and that’s why the good news is that you may arrange just the insurance cover you need, yet still save money on the cost of the premiums.
Here are a few suggestions about doing just that:
- from the very outset, it is important to remember that landlord insurance is essential if you have let property and that standard home insurance is inadequate, warns the Consumers’ Association’s Which? magazine;
- since there are significant differences between the two types of insurance – and getting it wrong might prove a costly mistake – you might want to consult a specialist provider to ensure that you get suitable cover to meet your specific needs but at competitively priced premiums;
- at the heart of your landlord insurance are likely to be the insurance safeguards for the structure and fabric of the building;
- although the total sum insured needs to cover the possibility of a disaster in which the property needs to be completely rebuilt following a major incident, beware the expensive temptation of overinsurance by limiting cover to rebuilding costs only – and not the price you paid for it, or even its current market value;
- once again, it is important to avoid becoming over- or underinsured by conducting at accurate evaluation of whatever property you own within the let dwelling;
- at its most economical, for example, basic cover simply for the carpets, curtains or other soft furnishings may suffice;
Public liability insurance
- indemnity against claims which may be made by your tenants, their visitors or members of the public who hold you responsible for injuries they have sustained or their property damaged is important to include in your landlord’s insurance cover;
- but it is worth checking just how much cover is provided – most policies provide at least £1 million of indemnity and if the limit is much higher than this, you might be paying more than you need for your insurance;
Loss of rental income
- make sure that you are getting value for money for your landlord insurance by checking the limitations and restrictions on any compensation for loss of rental income the policy offers in the event of your let property becoming temporarily uninhabitable after a major incident;
- the maximum payable may vary from one policy to another.
Whilst ensuring that the cover you arrange is the cover you need as a landlord, the price you are paying in insurance premiums is also an important consideration. By examining these key aspects of practically any landlord insurance policy, you may be able to save money.