The attractions and risks of cheap insurance for landlords

March 7, 2012

Landlords Insurance

The attractions of apparently cheap insurance for landlords may be very clear.

Yet what may also need to be taken into account are the risks associated with pursuing a search for landlords insurance exclusively on the basis of the cheapest price you can find.

Your asset

You probably do not need to be told that property almost invariably constitutes a major investment of a landlord’s capital and protecting it may be of paramount importance.

Your asset may be vulnerable to any one of a number of potential problems, some of which may bring with them serious financial implications.

It may not be too much of an exaggeration to say that if you are unfortunate where property is concerned and your misfortune is combined with inadequate insurance cover, the financial costs may prove to be quite literally ruinous to you and your family.

The protection of let property insurance

This is why this type of cover exists.

Yet in one sense, there is no one such thing as landlords cover insurance because each individual policy will typically provide slightly different levels of cover governed by slightly different terms and conditions.

For example, it may no longer be safe to assume that your landlords buildings insurance will automatically cover risks relating to subsidence.  Some policies may, others may not.

Given that serious subsidence may lead to horrendous costs, including potentially the demolition of your property and its complete rebuilding, you may wish to ask yourself how comfortable you would be, knowing that this risk was not covered by your policy.

A healthy balance

That is why what is cheap insurance for one landlord might prove to be exactly the opposite for you.

It also indicates the potential dangers of selecting your insurance exclusively based on the advertised price.

You may be very pleased that you have found what appears to be cheap insurance cover but if your property subsequently suffers severe subsidence problems and you discover this is not covered by your policy, your views on the policy’s cost-effectiveness may change drastically!

Looking for cheap insurance for landlords may be understandable and even sensible, however, it might be prudent to ensure that it was a secondary objective to that of finding appropriate cover.

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