Being cautious with cheap landlords buildings insurance

January 9, 2013

CIA Insurance

It is important to say at the outset that there may be absolutely nothing wrong with a low-cost landlords’ policy.

Yet it is necessary to be a little cautious and avoid becoming entirely focused on the apparently low-cost of any policy:

  1. in the case of any insurance, be it an expensive or cheap landlords buildings insurance policy, it is important to be clear as to the cover it is providing and whether or not it is likely to be suitable for your requirements. What might decide your ultimate satisfaction with a policy is not how much you are paying for it but how well it protects your interests in the event of a problem and subsequent claim;
  2. the buildings cover provided by landlords’ policies is by no means identical between providers or even individual policies.  For example, subsidence is a major and potentially very expensive problem if you are unfortunate enough to experience it.  Yet not all policies provide cover for it as standard;
  3. the concept of, as standard cover, is important to understand.  Some policies may, at face value, appear to be more expensive but they offer a far greater degree of as standard cover than other lower-cost policies.  While it might be possible to pay extra in the latter case to increase the cover provided by a policy, the final result might be a less cost-effective policy overall;
  4. the actual price of a policy may also be significantly influenced by the opportunities it offers to obtain discounts on the premium.  In the case of some, it might be possible to obtain substantial discounts in return for things such as taking a higher voluntary excess.  By the time these possible savings are factored into your calculations, it might significantly change your view as to which policy is the most cost-effective solution for you.

There is inevitably a balance to be struck between looking at the cover provided by a policy, its premium and any opportunities it offers for obtaining discounts.

Some simple mathematics, plus perhaps some advice from an experienced provider of landlords insurance, such as us at CIA Insurance, might enable you to reach an informed decision as to which policy is the one for you.

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