How much is landlord insurance?
Landlord insurance doesn’t have to break the bank. The price can vary depending on factors such as the property’s location, size and the level of coverage that is selected.
Here are some effective ways to potentially lower your premiums:
Property-Related Factors
Improve Property Security:
Installing alarms, CCTV, or strong locks can reduce the risk of theft and vandalism, leading to lower premiums. Landlords insurance can be reduced by putting on certain locks, these are normally five lever mortice dead locks and multi pointing systems. They are considered to be the most secure. It is important to check which locks meet with your insurers minimum requirements.
Maintain Your Property:
Regular maintenance and repairs can prevent costly damage claims, which can positively impact your insurance cost. Landlords insurance can heavily depend on whether you maintain the property or not. You will find if you do not maintain your property and you make a claim the insurance company may not pay out because they will say the items that have been damaged due to wear and tear. It is important therefore that you maintain your property over time and even carry out regular inspections to ensure there are no problems.
Consider Property Type:
Some property types, like flats or houses, might have different risk levels due to the building and contents. Understanding this can help you find the right coverage and price. Not all properties are the same. Some are built with substandard materials and you should always consider this when buying a new property. It is important that you do your research regarding the property and what materials are used to build it.
If you would like to find out more about our contents insurance policies click here.
Tenant-Related Factors
Thorough Tenant Checks:
Conducting comprehensive background checks on potential tenants can reduce the risk of rent arrears or property damage. These background checks can take time and be cumbersome. We often find landlords now look at taking guarantors with properties, ensuring they have someone to guarantee the rent in the event the tenant doesn’t pay. These are often a better way than some rent guarantee insurance schemes.
Rent Guarantee Insurance:
While this adds to your costs, it can protect against lost rent and might qualify you for discounts on your landlord insurance.
Tenancy Agreements:
Having a clear and legally sound tenancy agreement can protect your interests and potentially lower your insurance premium. It is important that tenancy agreements are done correctly together with all the paperwork. These is a huge amount of compliance on landlords from gas safeties, EPC’s, EICR’s and licensing schemes being bought in on a regular basis by council. Landlords have to deal with compliance and there is a government tenancy agreement you can use which could improve the reduction in your premiums.
Is your rental property currently unoccupied? Contact us to discuss unoccupied insurance policies for your property.
Insurance Policy Factors
Increase Your Excess:
A higher excess (the amount you pay before your insurer covers a claim) can often lower your premium. However, ensure you can afford the excess if you need to make a claim. If you increase your excess then your premiums can come down. This can be good for landlords building insurance but at the same time you need to be aware that you have property owners liability for the amount of the excess. The excess increase will mean you are liable for the payment on each and every claim thereafter.
Compare Quotes:
Don’t settle for the first quote. Compare multiple insurers to find the best deal. We always try and find the best possible price for your landlord building insurance. We have a substantial number of suppliers that we will go to get you the best possible price and cover. If you want an instant landlord insurance quote click here now.
Bundle Policies:
If you have other insurance policies, such as home or car insurance, bundling them with your landlord insurance might offer discounts.
Consider Specialist Insurers:
Some insurers specialize in landlord insurance and can offer competitive rates. This is especially important if you rent out multiple properties.
Review Coverage:
Ensure you have adequate coverage without unnecessary extras. Over insurance can increase your premium.
If you would like an instant quote on insurance for your property, please click here.
Additional Tips
Avoid Vacancies:
Unoccupied properties are more vulnerable to damage, so aim to keep them tenanted. However, we do offer unoccupied insurance if your property is going to be empty for a long period of time. You can find out more about unoccupied insurance and other cover here.
Accurate Property Valuation:
Ensure your property is accurately valued to avoid paying for unnecessary coverage. It is important that your property is insured for the correct amount. Landlords building insurance is critical for people to ensure that they get their buildings covered but at the right price. If you don’t cover your building for the correct sum insured it may be that you will not be paid out by the insurance company because you have insured it below the correct amount. This is known as average and can reduce your claim on any property and/or even mean you wouldn’t be able to make a claim at all. It is therefore so important that you check what your current properties should be insured for.
Our sister company, Harringtons Lettings offers free online property valuations. Get in touch here.
Pay Annually:
Some insurers offer discounts for annual payments instead of monthly instalments.
Remember: While these tips can help reduce your premiums, it’s essential to maintain adequate coverage to protect your investment.
Do I need landlord insurance?
At the moment, landlord insurance cover is not a legal requirement in the UK. However, it is heavily recommended if you own a rental property as it provides essential protection that standard home insurance doesn’t cover. Landlord insurance makes sure that you are on the safe side in situations such as loss of rental income, damage caused by tenants and liability in case of accidents on the property. Landlord insurance is a prudent investment for safeguarding your property and income.
If you would like to discuss your options or get a quote for your property, or discuss our commercial insurance policies, make an enquiry here or call us 01273 827090.
