It is not exactly uncommon to see the phrase ‘cheap landlord insurance’ liberally sprinkled around some buy to let home insurance advertisements.
Sometimes it may not be entirely clear what the phrase really means, although the implication is clearly that the insurance provider is offering cheaper buy to let landlord insurance policies than perhaps some other insurance providers.
Even then, using a description of ‘cheap landlord insurance’ may still leave a number of questions unanswered, including:
- if it is lower cost, what is the insurance provider comparing it against to enable them to describe it as being ‘cheap’?
- is the policy actually suitable for your needs?
The logic behind these two questions is relatively clear.
Clearly if you compare a buy to let property insurance policy providing a relatively low level of cover and benefits to one that offers a far higher degree of these things, then you might expect to see that it is more lowly priced relative to the more sophisticated policy.
Yet if the policy providing broader cover is a good match to your requirements, then you may consider it to be ‘cheap at the price’.
The conclusion should therefore surely be that advertisements for cheap landlord insurance might need to be treated with a little caution.
This is not suggesting that they are in any way inaccurate, as they may well offer relatively low-cost insurance. However, this may need to be seen in the broader context of the cover the policy is providing and your requirements.
Perhaps the most suitable way of finding cover that meets your needs and at a price that you find realistic is by comparing landlords insurance policies, and weighing up which one offers you the most suitable level of protection and at the lowest cost.
This is because buy to let insurance policies may differ in many areas including where some may offer the following benefits and features while others may not:
- legal fees (where arising from an insured risk);
- subsidence cover as standard (many insurers charge a fee for this cover – though at Cover4LetProperty we don’t);
- loss of rental income (again, typically in cases where it arises from an insured risk, such as the building being rendered uninhabitable);
- the amount of voluntary excess offered – something that may help you reduce your premium. (For example, with our let property insurance, flexible voluntary excesses from £100 – £1000 are available, giving discounts of up to 40% off the premium).
The bottom line may be simply that what is cheap landlord insurance for someone else may be neither cheap nor suitable for you. It may always be advisable to read the policy carefully and study its benefits thoroughly before starting to think about its pricing level.