What is a landlord insurance review?

November 11, 2012

Landlords Insurance

With December approaching and then the New Year, taking a look at all your outgoings to have a cost-efficient 2013 may make sense. The good news is that with let property cover, at least, this is not something that is as complicated as it sounds.

Carrying out a simple landlord insurance review does not take a great deal of time or effort but it may yield you significant advantages.

Essentially, it is the business of looking at your existing cover and deciding how it matches up both to your current business situation and other options that might be available to you in the insurance marketplace.

I understand comparing my policy to other options but why do I need to think about my business position? 

It is very likely that when you selected your existing policy, you looked closely at how well it matched the precise circumstances of your business.  For example, you may have specifically selected a policy that allowed you to let to any tenant category you wished.

However, over time businesses can change and their insurance requirements likewise.  It might well be the case that your existing policy was an extremely good match to your business as it was in the past but it might be a less close match today if your business has changed.

That is something that is worth understanding.

Is the objective to save me money?

Possibly but that is not the only objective.

Insurance exists to provide you with a degree of comfort that your risks are covered.

The outcome of a review of this nature might be relatively neutral in terms of the premium you are paying but it may result in you switching to a policy that provides you with much more substantial and suitable cover.

Of course, a more cost-effective solution is also a possible outcome.

Won’t my existing policy provider inform me if better options are available?

It might be a little unrealistic to assume that any policy provider will draw to your attention the fact that there are now more suitable policies available from their competitors

In some cases, a provider may highlight that they are now offering an enhanced policy and persuade you to change to it but they are under no obligation to point out to you that your existing policy might now be bettered by other options in the marketplace.

How does this affect my automatic renewal?

As you might expect, it would perhaps be logistically simpler if you performed this type of review a reasonable period in advance of your automatic renewal date.

This isn’t absolutely essential but it might make your life a little easier in terms of communication.  In practice, it might be advisable to conduct this type of review more than just once a year, as the insurance marketplace is dynamic and subject to regular change.

 

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