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Saving Money on Landlord Insurance

Believe it or not, there are ways that landlords can help save money on landlord insurance without the need to make large sacrifices on their cover.

Landlord insurance is an absolute must for renting out a property since the smallest issues can often protect you from paying large fees.

No matter how reliable a tenant might be the property is still at risk of falling victim to a fire, flood and even theft. And whilst these risks are very real, you should be careful not to overpay for your insurance.

Consolidate policies

There are various insurance needs for landlords, including accidental damage cover, liability insurance, building cover and contents cover.

With so much cover being needed, we’d suggest looking for a policy that can place them together, or one that contains special clauses that doesn’t require you to seek added cover elsewhere.

Opt for a specialist insurer

You’ll probably find that a huge number of insurers will offer landlord cover, including buy-to-let mortgage companies. But we’d still suggest shopping around and using price comparison websites like GoCompare, MoneySuperMarket or Compare the Market.  Specialist insurers can also offer simplified, straight to the point quotes.

Pay in full

Paying your insurance in one lump sum will eliminate interest charges that come with paying monthly. You can pay up front either with a cheque, bank transfer, or a 0% credit card.

Obtain an accurate rebuild value

When buying landlord building insurance you’ll need to provide an accurate rebuild value for your property. This is defined as how much it will cost to rebuild your property from the ground up, not its current market value. It’s important that this figure is accurate, because if it’s underestimated, you could be left needing to pay extra. Overestimate it and you’ll end up paying a premium!

Opt for a higher excess

Choosing a higher excess for your insurance could make your policy more affordable, but leave you to pay more if you make a claim. Choose an excess amount that best suits the area of cover it applies to.

  • Contents claims are usually smaller, so we suggest choosing a lower excess
  • Building claims are usually larger, so it may be worth going with a higher excess

Take security seriously

Your premium will be reduced if your property has an alarm, as well as reliable door and window locks. Decent security measures can also save you from having to deal with crime, which will cut the cost of excesses, protect your no claims discount and decrease the chances of an increased premium.

Reduce vacant periods

Many insurers aren’t comfortable with providing cover for a property that’s empty for long periods of time, as it brings an increased risk of vandalism and burglary. Consider instructing a managing agent who can advertise your property and consult with a database of tenants who are looking for a property like yours.

If the property will remain empty for a long time, you could save money by obtaining a specialist unoccupied insurance policy.

Don’t just go for cheap

Opting for the cheapest policy available is a tempting though, especially as renting out a property is expensive alone.

Although it may seem unlikely now, you may later regret it if you’re not best protected. It’ll leave you with a large bill to pay for the sake of saving just a few pounds on your policy. Choose the one that offers the best value for money and includes all the cover you need.

If you are in need of a Buy to Let mortgage have a look at our Just Mortgages advice page.