Few of us like the idea of paying more for something than we need to so anything that claims to represent the cheapest let property insurance may catch our eye.
Yet when you’re searching for landlords insurance, thinking exclusively about the cheapest let property insurance just may prove to be an approach you subsequently regret:
- if you need to make a claim, your focus and that of the insurer, will be exclusively on the cover, terms and conditions of the policy and not on the price – it may therefore be advisable to concentrate on those same aspects when selecting your policy, rather than the price alone;
- policies typically offer significantly different levels of cover – some may be far more suitable for your particular situation than others, therefore, what is cheap to another landlord might not prove to be cheap for you;
- subsidence cover, for example, may be included as standard on some policies but this is by no means universally the case – there are other areas where it may be advisable to look carefully at cover;
- if your property is in a locality with a known history of flooding (your insurer, the local press or local authorities may be able to confirm the position) then you may find that with some low cost landlord insurance you may not be covered for that risk or subject to special terms and conditions;
- low cost landlord insurance may not include cover for things such as trace and access activities – these are the costs you may incur should a tradesperson need to damage and repair parts of your property while they search for the source of a problem;
- as a landlord, you may be far more exposed to the risks of being sued for third-party liability damages, than an owner-occupier – it may therefore make sense to check any low cost landlord insurance to see that such landlords liability insurance is provided and that it is to appropriate levels (remembering that courts may award very substantial sums against you;
- if your property is let out furnished, it might be prudent to ensure that your policy contains adequate contents cover – some policies may even offer to cover you against the risks of malicious damage caused by tenants;
- the cheapest let property insurance may not provide you with legal costs cover – such cover is not typically available for rent or eviction disputes with your tenants but it may cover the legal fees you might incur if you were sued for third party damages (you may incur such costs even if you win the case).
So, perhaps a more rounded search for landlord insurance may be a little more productive than one based on trying to find the cheapest let property insurance.