Landlord insurance may not be a requirement by law, but it’s still a necessity. Without it, you may wind up having to pay for repairs, damages and liability claims out of your own pocket. Some landlords shy away from buying insurance because they feel that it’s an unnecessary cost. However, with the right policy in place, it is possible to get the cover you need at a price you can afford. Here are some tips on how to save on your landlord insurance policy:
Decide if You Need Contents Insurance
What type of property are you letting? Is the property furnished or unfurnished? If you’re letting an unfurnished property, there is little cause to purchase contents insurance. Tenants can purchase their own insurance to cover their own belongings.
If you plan on letting a furnished property, contents insurance is a smart option. It will cover any items in the home that belong to you, the landlord. This includes any furniture, fixtures, electronics and any other items that you provide for your tenants.
Compare to Find the Best Deal
Saving money on your insurance is one of your top priorities. Because this is such a competitive market, you can easily shop around to find the best deal. There are a few different ways to do this:
- Use comparison websites: Comparison websites are a great option for anyone who is short on time. These sites will ask you to enter simple details about your property, and will match you with insurance companies that offer the best deals.
- Check with the bank or the local building society: If you have a good working relationship with your bank or the local building society, you may be able to find a good deal on your insurance policy.
Understand What Affects the Cost of Your Landlord Insurance
When trying to build the right policy for your needs and budget, it helps to have an understanding of what factors affect the cost of your insurance policy.
Some of these factors include:
- The location and size of your property
- How much your property is worth
- Whether or not your property has any environmental risks (like flooding)
- Any previous claims you may have made
- The local crime rate
- How many tenants will be occupying the property
- Whether or not you have alarm systems installed (smoke and theft)
These are just a few of the main factors that will affect your policy’s premium. Some of these factors are in your control, while many of them are not. Making adjustments to the factors that are in your control may help you reduce your insurance premium.
Understand How Much Cover You Need
When valuating your property, it’s important to ensure that your estimates are accurate. Over- valuing can cause you to pay higher premiums. Under-valuing may save you money, but if you ever need to rebuild, you may find yourself short on funds to complete the job. Ideally, you will choose a policy that offers unlimited cover. Many insurance companies are now offering this as part of their standard landlord insurance policy.
In addition to buildings cover, you need to consider whether or not you really need all of the supplemental covers offered by most insurance companies. Trimming these down can lead to significant savings.