Finding the cheapest landlord insurance

March 23, 2012

Landlords Insurance

Springtime may be the classic time for trying to find the cheapest landlord insurance you can. This process though, may become as much a business of trying to manage down your own risks as it is looking for lower-cost cover:

  • what might prove to be the cheapest landlord insurance available for another landlord might not end up being so for you – your requirements may simply demand a different solution that may affect the cost of your policy;
  • for example, you may find some landlords buildings insurance that appears to be very cost-effective but it may not include cover for subsidence – something that may be more important to you than saving a relatively small amount on your premium;
  • if you are looking at individual landlords insurance policies but in fact have a number of properties that you let out, then the most cost-effective solution for you may be property portfolio insurance (i.e. covering all of your properties under one single agreement with a sole insurance provider);
  • you may be able to take steps to reduce the cost of your insurance if you show that you are security conscious and taking your responsibilities to protect your property seriously – one such example might include the fitting of burglar alarms and security locks to all doors and windows;
  • another classic approach that may yield some cost benefit is taking a higher voluntary excess – the excess is an amount of money that you agree to pay towards the costs of any future claims and the higher that amount is, the lower your premium may typically be, assuming all other things are roughly equal;
  • although it might be too late in terms of any properties you currently own, if you are considering purchasing other buy to let properties, you may wish to keep in mind that your insurance premium may be higher if you have chosen property that is located in a high flood risk area;
  • your insurance premium may also be affected by the insured value of your property and its contents, however, if you are letting out your property on an unfurnished basis then you may not need a combined buildings and contents policy – avoiding paying for unnecessary contents insurance may help you towards what you may find to be the cheapest landlord insurance but it may be advisable to be sure that everything you consider to be a fixture and fitting is, in fact, also categorised as such by your insurance provider (and thereby typically covered on your buildings insurance).
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