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Landlord insurance: How to save money and cover yourself

No matter how prepared your property is, or how reliable your tenants are, disaster can inevitably strike at any moment. The possibility of flooding, fire damage or even theft occurring at your rental property means that as a Landlord, making sure you have insurance is a must.

But you should also take care when it comes to how much you’re paying. While you don’t want to scrimp on the coverage you receive, there are ways that you can save money on your insurance.  We’ve listed our top tips, designed to help you get the best insurance possible without breaking the bank.

Choose a specialist insurer

While it’s easy to find an insurer who will offer landlord coverage, finding the best price for your insurance might not be quite as simple.

Using price comparison sights like GoCompare, MoneySuperMarket or Compare the Market will give you an overview of the different types of insurances deals which are available, and help you find the best deal. Choosing to work with specialist insurers might also mean you’re offered simplified, straight to the point quotes which makes making a decision easier.

Investigate consolidating your policies

The variety of needs your insurance must meet, including liability insurance, building and contents cover and accidental damage cover is huge.

Looking for a policy which can group all the coverage needed together, or one which includes clauses which means you don’t need to seek additional coverage elsewhere could save you a significant amount of money, as well as hassle to make sure you’ve got everything covered.

Be accurate in the rebuild value

When buying landlord insurance, you’ll be asked to provide an accurate rebuild value for your property. Rather than being defined as the market value for your property, the rebuild value is calculated based on how much it would cost to rebuild your property from the ground up.

Calculating your rebuild value correctly is vital. Underestimate it and you could be left having to pay extra should an accident happen. Equally, overestimating the rebuild value could mean that you end up paying a premium unnecessarily.

Consider your excess amount

Generally, choosing a higher excess for your insurance can make your policy more affordable in the short term. However, this approach could backfire and result in you paying more if you make a claim. We suggest choosing an excess amount based on the area of cover it applies to.

  • As contents claims are usually smaller, it might be a good idea to choose a lower excess.
  • Because building claims are generally larger, we recommend going with a higher excess to cover these.

When you have chosen your insurer… pay in full!

Paying the full cost for your insurance means you eliminate any interest charges that come with paying monthly, helping you save money in the long term (even if it does feel like a massive cost upfront). You can pay up front either with a cheque, bank transfer, or a 0% credit card.

Protect your property

Investing in decent security and taking measures to reduce the amount of time your rental property stands vacant can both help you save on your insurance.

Installing an alarm and sturdy door and window locks throughout your property is a great way to reduce your premium. Having proper security measures can save you from having to deal with crime, cutting the cost of your excesses and protecting your no claims discount.

Similarly, many insurers are uncomfortable insuring a property which is empty for long periods of time, due to the increased risk of vandalism or burglary. Void periods can be minimised by ensuring that tenants stay in the property longer, or by ensuring a new tenancy is arranged quickly. Working with a managing agent who can advertise your property and consult with a database of tenants can help you arrange a new tenancy and ensure your property remains occupied.

However, if it looks like your property could remain empty for a lengthy period, you could save money by obtaining a specialist unoccupied insurance policy.

Get the best protection for the price

While opting for the cheapest policy available may be tempting, you might regret this decision if you’re not best protected by it. Choosing a policy which offers the best value for money and all the coverage you need is a much safer bet, and should stop you having to pay large bills should the worst happen.

If you’re interested in renting a property, or want to know more about Landlord insurance, talk to one of our agents.