Cheap landlord house insurance – a cautionary tale

December 23, 2011

Landlords Insurance

As a landlord, particularly as the year draws to a close and Christmas and New Year expenses loom, any suggestion that you may need to be cautious about advertisements for cheap landlord house insurance, may not necessarily be well-received.

 

Yet nevertheless, this is what this article must do.

 

In a sense, this point should not need making. It is a common wisdom, generally accepted, that in life there is a tendency to get what you pay for.  That is not to entirely disparage products trying to sell themselves as cheap landlord house insurance but simply to suggest that it may be advisable to look at them both closely and objectively.

 

For example, you may wish to ask whether or not the policy provides:

 

  • cover for all types of tenants including categories such as students and DSS;

 

  • all risks protection;

 

  • adequate third party liability maximum sums;

 

  • cover against subsidence risks to your property;

 

  • a contribution towards any rental income you may lose, should your property be badly affected by an insured risk;

 

  • malicious damage cover, where such is caused by your tenants;

 

  • discounts for insuring several properties (i.e. property portfolio insurance).

 

It may also be useful to consider whether or not your landlords insurance provider is able to offer cheap unoccupied property insurance as well – such cover may be necessary in situations where your property is left unoccupied for a period exceeding a number of days that are specified in the policy.

 

Typically, unoccupied property insurance is not included, as standard, in a landlord insurance policy.

 

An area that is sometimes overlooked is that of what opportunities may be available on some policies for making economies through risk-reduction behaviours, such as ensuring that your property is adequately protected by safety and security measures.

 

The bottom line may be very simple – cover that someone else may regard as cheap landlord house insurance may not be something that you would necessarily find to be the cheapest or most suitable option.  There may be no alternative but to look carefully at your requirements and to try and ensure that any candidate policy is a relatively close match to them.

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