How can I keep down the cost of landlord insurance quotes?

December 20, 2011

Landlords Insurance

Questions about landlord insurance quotes are, in fact, relatively commonplace.


Here are a few typical examples and responses.


How can I reduce the cost of my landlord insurance quotes and find cheap insurance for landlords?


One obvious approach is to ensure that you look at several options and compare them against each other, rather than simply opting for the first quotation you receive out of convenience.


Another important point to consider is that the cost of your let property insurance will be related to the degree of risk, as perceived by the insurer concerned.  It therefore follows that if you take steps to reduce the risks covered by your policy, the better the final price of your landlord insurance quotes may prove to be.


In passing, remember that what may be important is suitable insurance rather than cheap cover – what is cheap for one situation may not prove to be cheap for yours.


How do I reduce the risks?


There may be little point in taking steps that appear to make sense to you, if these are not actually covered by your policy.


Typically, a good starting point is to look carefully at the quotation and supporting documentation, to see whether the insurer offers discounts for certain risk-reducing steps.


In some cases, these may be noted to include things such as:


  • fitting additional security devices (such as burglar alarms) to your property;


  • ensuring that full safety equipment is provided, including smoke detectors and so on;


  • undertaking various forms of periodic maintenance and safety activities through professional bodies – including where these are not necessarily required by prevailing rental legislation.


Although a slightly different form of risk reduction from the insurer’s viewpoint, you may find the cost of your policy will reduce if you accept a higher degree of excess on the policy.


What is excess?


It is an amount of money that you agree to pay as the first part of any future claim.


Some policies may set a mandatory minimum excess but they may also allow you to opt for a higher amount and in return, offer a reduction in their premium.


What is third party liability cover and why am I paying for it?


In the event that one of your tenants (or any member of the public) is injured or suffers damage to their property, which they attribute to a cause associated with your property, they may decide to sue you for damages.


If they win, a court may award very substantial damages against you.  Third party liability cover is aimed at covering or helping you to cover, any damages so awarded.


Given the potential sums involved, it may be wise to check that landlord insurance quotes include an appropriate allocation for this eventuality.



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