How much is landlord insurance likely to cost?

Posted: 3rd Jun 2014

How much is landlord insurance likely to cost is a question that may be similar to the one about how long is a piece of string and the only answer it may be possible to give is – it depends.

It may depend on factors such as:

  • the type of property you have;
  • whether you let it on a furnished or unfurnished basis;
  • the level of cover you need for contents;
  • the value of the property in terms of how much it would cost to rebuild it completely from scratch;
  • the level of voluntary excess you may be prepared to accept; etc.

So, before you may be able to think about how much is your landlord insurance going to cost, you may first of all have to consider the above factors and give some thought to those elements of cover which may not be included in all buy to let policies.

These might include cover for;

  • malicious damage by tenants;
  • damage from subsidence;
  • all types of tenant – some policies may exclude students and DSS.

When thinking about how much is landlord insurance going to cost, you may also have to bear in mind that if your property is standing empty for extended periods of time – perhaps in excess of 30 days, then you may need to get an unoccupied property insurance quote.

That’s because when a property is empty, the risks it faces change and a standard buy to let policy may no longer provide you with the protection your property may need.

For example, dark windows and a garden that starts to look untidy with rubbish lying around may attract thieves and vandals. Similarly a small problem like a water leak left unnoticed may, over time, become more serious and cause more damage.

So from an insurance point of view, a specialist policy may be required and you may also wish to note that the terms and conditions of such policies may be different to those of standard buy to let cover.

The reasons why your property is empty may not be all that important from an insurance point of view:

  • you may be experiencing problems finding new tenants;
  • you may be carrying out renovations or refurbishment;
  • there may be some kind of legal issues with previous tenants that may be preventing you from re-letting your property of perhaps divorce or probate proceedings.

You may find, for example, that you are required to visit your property while it is empty, on a regular basis to check that everything is okay and to carry out any necessary repair work. You may also be asked to keep a record of these visits and the work undertaken.

So how much is landlord insurance may be a question that can’t really be answered until you know what you are looking for. We would be only too happy to help you try to get the answer you need, so please feel free to get in touch, either via email or over the telephone.