Making sure you get the most suitable landlord insurance quote

Posted: 8th Jul 2019

Even though you may consider yourself to be a typical landlord, what is the best let property insurance for someone else may not be best option for you. so, to find appropriate let property insurance, it may make sense to compare landlord insurance quotes.

Making a landlord insurance comparison isn’t as hard as it may sound and it may result in you obtaining more suitable cover.

Here are a few things that may be worth comparing between two policies but perhaps surprisingly, price isn’t going to be mentioned.

That’s because, while price is of course important, it might be worth avoiding diving directly into comparing prices. Your property is a major financial investment and what may be far more important than a few pounds is finding cover that meets your needs!

Comparing landlords insurance

Some features to look out for when you compare landlord insurance quotes may typically include:

  • Loss of rent. Your property may be damaged to the extent that it is rendered uninhabitable by one of the events covered by buildings insurance, such as earthquakes, fires, floods lightning strikes etc. With most providers you’ll typically be covered for the repair costs but can the policy also provide you with cover for loss of rent when you tenants have to move elsewhere?
  • Is subsidence covered as part of the standard landlords insurance policy? Unlike ourselves, who offer subsidence cover as a standard element of a buy to let insurance policy, not all let property insurance policies provide buildings insurance cover for subsidence. Given that the cost of resolving subsidence can be huge, this is something it may well be worth checking;
  • Malicious damage. Hopefully it will never happen to you but if your tenants decide to maliciously damage your property, some landlord’s insurance policies – again, including ours – may cover that (limits apply) and others typically won’t;
  • Flooding. Some policies may have special provisions relating to flood risks for properties located in areas with a known history of flooding;
  • Policy terms and conditions. Some policies providing landlord insurance may contain special provisions relating to things such as safety and security on your property. For example, they may require that you fit additional anti-burglary devices such as security locks and alarms and so on;
  • Legal cover. Some insured risks may also result in the creation of a legal component – one example may be if your tenants sue you for injuries sustained on your property. Not all policies will provide help in this area (note that legal costs arising from things such as pursuing tenants for unpaid rent will typically not be covered);
  • Contents. To make a landlord insurance comparison, you’ll need to look carefully at the policy’s position with respect to landlords contents cover. Some may offer market value replacement – others may offer new-or-old. Both may have their advantages but it important to ensure that what is being provided actually meets your needs. Also, not all landlord contents insurance policies may offer the same levels of cover for some high value items like entertainment systems, computers and the like. Some let property insurance may have upper value limits that may (or may not) offer adequate cover in your particular circumstances;
  • Unoccupied property insurance. Remember that typically a landlord’s policy won’t cover what’s called an unoccupied property, typically defined as one that has stood unoccupied for more than 30-45 consecutive days. Special empty property cover is required for that situation and it is worth checking the policy’s position;
  • Third party cover. Court awards following a successful third-party claim against you may prove to be staggeringly high. Not all policies offer the same levels of cover and it’s something to look at.

Once you have selected the policy that most suits your needs, do make sure you have adequate buildings insurance cover.

How much buildings insurance do I need?

It may be important to note that the amount of your buildings cover may not be the same as any mortgage held, your buying price or indeed what you could expect to sell the property for – so getting professional advice on a suitable level might be a sensible idea.

The amount of landlord insurance buildings cover you opt for may be a contributory factor in the price of your buy to let cover. This ideally should be sufficient to cover all of the costs including architects, surveyor, legal fees, searches and site clearance etc, of a complete rebuild of the property.

Getting the most appropriate let property insurance deal

So, to ensure you’re getting a deal that’s suitable for you, making a landlord insurance comparison may be essential. If you have any questions relating to this, or need assistance as to which buy to let insurance policy is most appropriate for you, please do not hesitate to get in touch. We’d be delighted to help.