Letting property can be a very lucrative venture but it comes with a lot of responsibility. When you’re letting property to tenants you’re responsible for a lot of things. Having good insurance is an absolute must for landlords. Risks come from many different places so trying to let property without having insurance in place is a recipe for disaster.
Types of Cover
- Building Insurance – Building insurance is vital for any landlord. It will ensure that you’re covered for rebuild costs as well as any structural repairs that might need carrying out on your buildings.
- Contents Insurance – If you let properties that are fully furnished then you should strongly consider getting contents insurance. Whilst some insurance policies include contents insurance, this will usually only cover basics and will not include cover for accidental damage.
- Public Liability – Liability claims are something that every landlord must be wary of. If you keep your properties well maintained and are selective with your tenants then this goes a long way to avoiding liability claims but it’s still important to know that you’re covered if this happens.
- Legal Expenses – If you do have to go to court to fight a claim then the legal expenses can be extremely high. This is why having them included in your policy is a very good idea.
- Rent Guarantee – Due to the harsh economic climate, it’s an unfortunate fact that tenants are more likely to default on rent than ever before. Dealing with non-paying tenants can be a very trick situation. Having rent guarantee insurance at least gives you some protection if you find yourself in this situation. Your bills will be covered as well as any legal expenses that come with having a tenant evicted.
- Unoccupied Property Insurance – If you have property that has been unoccupied for more than 30 days then you’ll need to get unoccupied property insurance to cover it. Some landlords wrongly believe that unoccupied property is not at as much risk. In fact the opposite is true, especially when it comes to risks such as burglary and vandalism.
Ways to Save Money
- Secure Your Properties – Insurance providers are certainly going to take into account how much risk your properties are at from theft and vandalism. By making your properties secure you can greatly reduce these risks and therefore insurance providers will offer you a better price for your policy.
- Be Selective with Tenants – This one is very important. Too many new landlords are naïve when it comes to selecting tenants. Whilst it’s important to find tenants for your property, it’s vital to be selective since problem tenants can cause all kinds of headaches.
- Pay Annually – If you can pay for the policy upfront then you’re in an excellent position to negotiate a lower price with insurance providers.
- Get Multiple Quotes – This one should be obvious. Getting quotes from different insurance providers enables you to compare and see which policy offers you the best value for money.
Getting Quotes Online
By far the best way of getting quotes for landlord insurance is to get them online (we use Multiquote Buy to Let). Since getting multiple quotes is one of the best ways to save money on landlord insurance it makes sense to do it in the easiest way possible. There are many insurance comparison sites online that allow you to get quotes from several different landlord insurance providers by filling in one form.
This is ideal as it saves you having to contact insurance providers separately, which is ideal if you’re short on time. When getting quotes online you also don’t have any pressure to take out a policy, you can simply look through the quotes you have and select the one that’s the best.