The importance of getting suitable landlords cover

Posted: 4th Jun 2014

If you have questions relating to landlords insurance, you might find some of the answers in the FAQs below.

How do I know which landlord insurance is right for me?

There are really three ways of going about this:

  • you can take a considerable amount of time to familiarise yourself with all aspects of the landlord cover marketplace and then evaluate lots of different policies using your newly-found skills;
  • asking an experienced organisation to give you some landlord insurance advice – obviously that is something that we at Cover4LetProperty will typically be able to help you with;
  • guessing – and hoping you get lucky with your policy purchase once you have actually made it.

Significant numbers of landlords dislike the idea of gambling with their cover or trying to become experts in landlord cover and its complexities. That is why the second option might be advisable.

What are the key things to look for?

Essentially, you will need to look at what a policy is providing and how relevant that is to your individual landlord business.

It is also important to read and understand the terms and conditions associated with the policy. That isn’t just red tape that you can safely ignore but might, in fact, prove to be something that is critically important in deciding whether or not a future claim is accepted.

For example, some policies might provide the following things as part of standard cover that others might not:

  • subsidence cover;
  • malicious damage by tenants;
  • loss of income cover (in situations where you have been forced to ask tenants to move out while you undertake repairs arising from an insured peril); etc.

How can I save money on the cost of my policy?

Perhaps the most obvious step to take is to make sure that you have looked around at a number of options and have found one that you believe to be cost-effective, with or without experienced advice.

After that step, you may also find that insurance providers will offer a significant discount on the premium in return for you accepting a higher level of voluntary excess – though not all providers may necessarily offer such a facility.

Discounts might also be available in return for things such as a history of no claims and in some cases, taking additional security precautions to help keep your property safe.

I have read a lot about flood cover issues – what is the reality?

There is little doubt that the ever-increasing numbers of flood claims are proving to be a serious financial challenge for the UK insurance industry.

As a result of this, increasing numbers of providers may not offer flood cover as part of their basic policy or may not do so in circumstances where your property is located in a known high flood-risk area.

In other cases, such cover may be available but might be subject to a separate policy, special terms or increased premiums (perhaps all three).

This is an area where specialist advice might be required.