SOME brokers will tell you that the cheapest Landlord Insurance policy isn’t always best. Here at The Property Insurer we disagree, not only is it best but it is sometimes necessary to ensure you make a profit on the let property – providing you get the cover you want and need.
Yes, the very cheapest policy with no cover and maximum excess and everything bar a fire excluded in the wording is pretty worthless. What we are talking about is a minimum standard policy that you know you need.
A minimum standard landlord insurance policy should include buildings insurance for all the normal risks such as fire/flood and subsidence. None of these major risks should be excluded.
Excess should be set at a sensible level, similar to other mainstream home insurance policies. Anything above £500 on normal risks is too much in our view. Anything over £1000 on subsidence is too much.
And if the policy excludes flood risk, then walk away and get Landlord Insurance elsewhere.
Nice to have elements include 30-60-day unoccupancy cover in case you encounter a void period. You shouldn’t need to change your policy if the property is empty for a short period because that will cost you money.
Policy changes should be either low cost or free for a certain amount or any that you make. Firms that charge £25 for changing a name or address should be avoided if possible. That is money making of the worst kind for basic admin changes.
So as long as you can get the buildings sum insured that you need with those rules above met, then it is clear that cheapest will be best for you. That way you save money and give the property the chance to earn as much as possible.
Saying that, we wouldn’t recommend buying Landlords Insurance from ‘Dodgy Landlord Insurance Company’. You need to apply common sense and ensure that the firm is regulated by the FCA and actually does exist.
Good Landlords Insurance does not cost a lot. In the UK it is around £140 on average for a year policy right now. You can add on rent guarantee and emergency cover, along with landlords contents insurance as well if you really want to.
To get three of the best landlord insurance brokers in the UK competing for your policy, just visit The Property Insurer and fill in the single form that takes just two minutes. Then you can compare prices and choose the one best suited for you – which when all other things are equal, is the cheapest policy.
The Property Insurer