Cheapest Landlord Home Insurance Quotes

If you are a first time landlord and are looking for insurance for the first time then this article is a great introduction to the subject.

In a world where the fear of risk, both real and perceived, is on the increase, insurance plays an important role in mitigating those risks and allows us to move into business areas that we would otherwise probably steer shy of. Since Mr. Lloyd opened his coffee shop in London back in 1680, business insurance has become an essential ingredient of business life in the UK. However, insurance can only be the safety blanket we need it to be if the insurance we choose is suited to our particular needs. Every type of business has its own risks and requirements and this article discusses just one of them – insurance for landlords.

Landlord Insurance

Landlord insurance is designed to apply specifically to someone who rents out residential accommodation. It differs from your own, domestic contents and buildings insurance in many ways and the two types of insurance should not be confused. There are certain risks involved in providing such residential accommodation and it is, unfortunately, not uncommon for landlords to experienced tenants defaulting on rent or damaging their property.

Most property is rented to individuals about whom the landlord knows very little and, while most people are honest and can be trusted to treat your property well, there is a sizeable minority who will have no respect for the property they live in but do not own. It is estimated that up to 20% of landlords have problems with their tenants causing intentional or negligent damage to their property or its contents.

The Main Risks to Landlords covered by Landlord Insurance

  • Malicious or intentional damage to the property by the tenant or their guests
  • Theft of contents by the tenant or their guests
  • Defaulting of rental payments by the tenant
  • Liability for any claims against you by the tenant for injury of damage
  • Legal expenses for defending or taking action against a tenant
  • The necessary cost of re-housing tenants should your property become uninhabitable because of fire, water damage, infestations etc.

How to Keep your Risks Low

1. Always make sure you have sufficient cover
A common mistake that landlords make is to insure their property on the market value, rather than the cost of rebuilding, which is usually much lower. A professional survey of your properties can establish the likely rebuild costs and insuring for this amount will cost less.

2. Put all your houses on one policy.
If you are renting more than one property make sure you have a single policy that covers them all. Not only can you negotiate a discount when buying the policy, but a single renewal date and the ease of management of the policy will pay dividends too.

3. Add a Voluntary Excess to your policy
If you can be certain that you have enough assets to cover a claim it may be worthwhile adding a voluntary excess to your policy. It will mean that, up to a certain amount, you will have to pay for minor damage but it could save you money in the long run and, in the case of major damage, the excess will still be a very small part of the total.

4. Choose your tenants carefully
Many problems can be avoided by properly screening the people you allow to become your tenants. The more you can learn about them, their personal history and their character, the better. A face to face meeting will probably reveal much more about your prospective tenants than phone calls and it will be well worth the time and effort spent. The quality of your tenants will make a difference to your insurance company. Many insurance companies refuse insurance for students or the unemployed, so if you intent to rent to these people check your insurance small print carefully. It is a general rule that renting your property to professional people, in full time employment, will be looked upon favourably by your insurer and will reduce both your premiums and your risk.

5. Make your Property Secure
Insurance companies will look favourably n an extra methods undertaken to increase the security of your houses and flats. As much as 10% can be saved on the policy by having such security measures in place, including fire alarms and window locks.