Residential Landlord Insurance- An Intro
Landlord Insurance is one of the most important purchases any private rental landlord can make. Not only does a landlord insurance policy cover everything that a homeowner policy does, it also covers things like loss of rent in the case of an insured event, legal costs and damage caused to your property by tenants. Not all landlord policies are as good as the next though, and some can work out to be an expensive investment for little return. With this mind you should use the following tips to help save you money on your policy whilst also safeguarding one of the biggest investments you'll ever make…your private rental property.Do you want to learn more? Visit residential landlord insurance.
1. Shop Around
It doesn't matter whether its landlord insurance, homeowner insurance or any other type of insurance, you must make an effort to research the available options before signing on the dotted line. There are hundreds of insurance providers around the UK and today the vast majority of buy to let mortgage lenders also offer competitive landlord insurance.
If you don't have time to search the market yourself you can always hire an insurance broker to do the legwork for you. It will of course mean paying them a fee but if they can save you more money and find you a better policy than you could yourself then it is worth the cost. Often insurance brokers only charge a fee when you agree to take out a policy through them. So, if they fail to find a better deal than you found yourself you can politely decline and you owe them nothing.
2. Look for a Flexible Policy
A lot of landlord insurance policies are designed along the same lines and understandably the majority cover the same types of things as standard. It may be though that some of the things covered as standard aren't actually vital, or even necessary. Some insurance providers will allow you to pick and choose, to a certain extent, what you want your policy to cover, and these are the providers to research initially.
For example, a lot of landlord insurance policies provide what is called 'cover for all types of tenant' as standard and at a cost. This means that the provider will insure your rental property and the contents that belong to you regardless of who the tenants are e.g. employed professionals, LHA claimants, problem tenants that may have been evicted from other properties etc. Obviously if you intend to let your property to problem tenants then you're going to want this extra cover but if you only intend to let to employed professionals then it's unlikely to be needed. Consider exactly what you need your landlord insurance policy to cover and then try to find a flexible policy to match.
3. Read the Small Print
In addition to choosing what extras you want your landlord insurance policy to cover, you'll also want to check that it covers all of the essentials and the conditions under which the essentials are covered; hence you need to read the fine print. As you no doubt know all insurance policies come with a long list of confusing terms and conditions and it only takes one ambiguous term to leave you without cover following an accident. If you're in any doubt as to what is covered and what isn't make an appointment with an insurance broker or a financial advisor. It may cost you a few pound for the advice but it will put your mind at ease regarding the policy.
4. Consider Portfolio Insurance
Portfolio insurance is a special type of landlord insurance aimed at those landlords with two or more rental properties. It allows you to put your complete buy to let property portfolio on a single policy, rather than taking out an individual policy for each individual property. Residential, commercial and mixed use properties can all be covered with portfolio insurance, and you'll know that everything essential is covered for every single property.
Portfolio insurance isn't offered by every landlord insurance provider so you will need to hunt around for a policy that suits your needs. If you can find one though (and there are plenty available to choose from) you'll quickly find your monthly premium comes in below the total that would be payable should you opt for individual policies. The more properties you add to the policy the more you save, and because portfolio insurance policies are flexible you can add and remove properties as often as you need to.
