The prospect of conducting a landlords insurance review may not fill you with too much excitement, though a review may turn out to be a rewarding experience – particularly if you manage to find a more cost-effective solution for your landlord buy to let insurance cover.
You may, for example, think that all landlords buildings insurance offers pretty much the same level of cover and to some extent you may be right.
For example, you may typically find that some landlord buildings cover policies may apply to damage for the building itself and its fixtures and fittings, from events such as flooding, fires and smoke, storms and earthquakes etc.
Similarly, you may find that landlords buildings policies may typically also provide third party or public liability cover. This provides you with financial protection in situations where a member of the public who has been injured or who has had their property damaged and who believes that this was directly the fault of your property, may decide to sue you for damages.
Within these two broad areas though, a landlords insurance review may highlight that there might be significant variation in the cover actually provided.
- some but by no means all landlord buildings insurance policies may provide you with cover, as standard, for damage due to subsidence;
- policies may be able to provide you with replacement income if your tenants have to move out, should your property be damaged by one of the insured events;
- if you have to call in a tradesperson to fix a problem covered by your landlord insurance policy, they may have to cause damage to another part of your property while trying to locate and rectify the original issue. Buy to let buildings insurance which offers trace and access cover, may help you avoid having this extra bill to pay out of your own resources;
- depending on the types of tenants you let to, you may find that policies which exclude students and DSS from cover, may be too restrictive for you if you prefer the freedom of selecting your own tenants;
- policies may differ in the extent to which they provide financial support for public liability – that is the support available to you if you were to be sued by a member of the public for injuries received which they believed to be the fault of your property;
Your landlords insurance review may also highlight policies where discounts of up to 40% may be available if you agree to accept a higher flexible excess between perhaps £100 and £1000 on your policy. So having a look at what’s out there may be well worth the effort.