IF you own a let property then you will want to maximise the profit by reducing all costs as much as possible and this is your guide on how to reduce the price of your landlords insurance.
First of all you need to know the rebuild value of the property. This is the buildings insurance component and is not the same as the price you paid for the property or what it is valued at. It should be on any surveyors report from when you purchased the property or you can get a survey done. Alternatively there are websites that can help you determine the rebuild value of the property Â just search on Google, although none of them are particularly easy to use in my opinion.
Once youÂve got the rebuild value you need to make sure that you have a few other key questions answered. Does the property have a maintained alarm, is it part of a neighbourhood watch area and do the windows all have locks on them.
Most landlords only need buildings insurance as they do not own contents or the contents inside the property are minimal. If you need contents insurance then it will increase the price of your policy significantly. I own a rental property where I own the cooker, hob and carpets and nothing else. I do not insure against their loss with a policy as I believe the cost of the policy would outweigh any benefit in a claim. The fact is these items are years old and worth very little to me or anyone. IÂd prefer to keep the Â£75 or so IÂd pay for insurance in my own pocket and simply replace the items when needed.
However, if you have just put in new carpets and white goods and spent Â£5000 on the lot, then IÂd suggest getting contents insurance to cover it, that would be a major loss.
The quality of your tenants will also have a bearing Â professional working tenants are preferred to DHS or illegal immigrants. ItÂs common sense (if not politically correct) that they are more likely to look after the property and not default or damage it.
Once youÂve got all this information then go to The Property Insurer and click on the landlords insurance button. It will take between 1-2minutes to get a competitively priced quote and you can buy online. Â ThatÂs your guide to cutting the cost as much as possible.
The Property Insurer