How To Decide Between Landlord Insurance Policies
If youre intending to rent a property out to paying tenants
, or you already do so, then you should have landlord insurance in place. The reason for this is that landlord insurance is designed with rental properties in mind and covers a number of things that a regular household policy doesnt. You may also find that your mortgage lender insists you have such a policy.Thankfully insurance providers are now starting to see the potential of offering landlord insurance policies, and accordingly the number of options available to buy is constantly growing. Obviously this is good news for landlords, but it also means a big decision has to be made when choosing which policy is best for your individual needs.
So how do you go about comparing landlord insurance policies?
Well probably the first thing you need to look at is the amount of cover offered by each policy. Some insurers will offer different levels of cover but a basic level policy should cover things like accidental damage to either the property or its contents, medical bills and loss of earnings incurred by your tenants as a result of an accident within your property e.g. a collapsed ceiling, and the cost of alternative accommodation should you need to rehouse your tenants following an insured accident.
Most landlord insurance policies also give you the option to add additional benefits to the basics mentioned above, and this is where policies tend to differ. Think carefully about the additional types of cover on offer from different providers, and then look for insurance providers that offer everything you feel you need, and only then calculate the price of the premiums. Not every insurance provider will quote the same, or even close, but remember that when it comes to insurance cheapness is not always best.
Make a point of checking that you can buy the types of cover you want individually and that you dont have to buy a complete package or a higher level of cover. Look in the first instance for insurance providers that allow you to tailor your landlord insurance policy to your exact needs so you dont end up paying for things you dont want.
This process should quickly narrow down your available choices, and once you have a shortlist you can start to compare the cost of premiums. Rememberthat some landlord insurance providers will take your targeted tenants into consideration when quoting a price, whereas others wont consider tenant occupations relevant when providing a quote. For example, a student property will probably incur higher premiums than a professional household because students commonly pose much more of a risk of accidental damage.
So, if you are thinking about marketing your property as student accommodation, or you are happy to accept benefit claimants, you need to find a landlord insurance policy that overlooks the majority of your tenants circumstances. These types of policies do sometimes charge extra fees in other areas but when the words student or benefit are mentioned, insurers automatically assume the worst and increase the quoted premiums.
Lastly, if youre a multi-property landlord then you might want to consider a special type of landlord insurance policy that covers your entire property portfolio. You are guaranteed to save money on buying them individually and you know that everything you want covered is covered in each property.Again, look closely at which eventualities are covered and which arent, so you dont lose money in the future paying to repair something that you thought would be covered as standard.
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