There are an estimated two and a half million landlords in the UK, renting out around five million properties. If you’re one of them, you’ll face the tricky task of balancing legal obligations and running costs with returning a profit. Finding a comprehensive landlord insurance policy at a good value price is key to achieving this goal. With this guide, we’ve made it easier than ever to understand the importance of landlord insurance. And we explain how to find the right cover at the best price.
Protecting your property and investment
What is landlord insurance?
Landlord insurance is an insurance product designed specifically for anyone who owns a property (or properties) that is rented out to tenants or guests. This can include:
- Landlords with multiple properties.
- Student lets.
- Holiday lets, including Airbnb.
- Commercial property lets.
Is ordinary home insurance suitable?
Standard home insurance isn’t designed for properties that are let out. Even occasionally renting out a room, such as through Airbnb, is unlikely to be included. If you only hold standard home insurance, but you do let out your home, your policy could be voided. And that can leave you facing big bills if something does go wrong. If you’re not sure, the best thing to do is to call your insurance broker or read through the small print in your schedule.
With specialist landlord insurance, you also get the option to purchase extra levels of cover that are relevant to the specific risks you face. That means that as well as covering the buildings and any contents, you can opt for handy extras like rent protection and legal expenses cover.
What does a landlord insurance policy cover?
A landlord insurance policy is designed specifically to meet the needs of property owners. As well as basic cover for buildings, you can tailor landlord insurance with a range of add-ons to meet your individual need and budget. This could include:
- Single or multiple property cover.
- Landlord liability cover with a choice of levels to suit your budget.
- Alternative accommodation cover for tenants in case of flood or fire.
- Contents insurance, for carpets and furniture.
- Rent guarantee.
- Accidental damage.
- 24-hour emergency cover.
- Landlord boiler cover.
Is landlord insurance compulsory?
If you own the property with a mortgage, buildings insurance could be a condition of the lender. If you own the property outright, there is no legal requirement to have insurance. However, taking out landlord insurance can be prudent to help to protect your investment.
How much does it cost?
The cost of landlord insurance varies depending on the type and size of property that you want to insure. Factors such as location and construction material can also impact on the cost.
How to get the best deal on your landlord insurance policy
As with any insurance, it never pays to scrimp on insurance. If you do, you could find yourself paying out much more in the long run. Instead, here are our top tips to get the best price on insurance you can rely on.
1) Always shop around to get the cheapest landlord insurance
Insurance companies rely on us being too busy to get new quotes when it comes to renewing our insurance. As a result, your renewal quote will likely be higher than you can find if you shop around. Allocate yourself time to sit down and ring around as many insurance companies as you can. The more you contact, the better comparison you’ll have and the better chance you’ll find the best value price available. If you don’t have time to shop around, use an insurance broker, like Park Insurance, to do the legwork for you.
2) Access exclusive discounts and negotiating power by using an independent insurance broker
Another great reason to consider using an insurance broker to buy your landlord insurance is to take advantage of their expertise and contacts book. For example, at Park Insurance, we are independent brokers, so we are free to shop around trusted insurance companies large and small. We understand the specific needs of landlords, so we know what does and doesn’t need to be included in your cover. We know which insurance companies offer the best value prices for landlord insurance, so we’ll go directly to them. As one of the UK’s largest brokers, we have significant buying power, which we use to negotiate hard on your behalf. As a result, you can be confident you’re buying high-quality insurance with nothing left out at the best possible price.
3) Tweak the excesses
If getting the lowest price on landlord insurance is essential to you, try tweaking the excess. This is the amount you have to pay every time you make a claim. Generally, the higher the excess, the lower your premium will be. Just be careful not to set the excess too high or it could become unaffordable for you to make a claim.
4) Look for excellent value bundle deals
If you need other types of insurance, such as home emergency cover, it can be cost effective to purchase this as a bundle deal with your landlord insurance rather than separately. Speak to your broker for more advice.
5) Remember, the cheapest deal is not always the best deal
Letting property is a business. The less you spend, the more you can make. But take care not to simply opt for the cheapest insurance quote, or you could be left out of pocket in the long run. If a deal seems too good to be true, it probably is. Make sure you read the small print carefully or ask your broker to go through the exclusions. That way you can be sure that you’re getting the cover you think you are.
Finally, protect your investment with quality landlord insurance
Park Insurance has been helping landlords for nearly 30 years. As well as finding insurance at great value prices, we’re also here to help if you do need to make a claim. A dedicated claim manager will take control to get things put right quickly and easily, saving you time and hassle.
If you’re looking to insure a property or a portfolio of properties, call our dedicated team on 0117 955 6835 or get a quote.