Take the time to look for your landlord insurance quote

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Thursday, March 18th, 2010 Subscribe To Our Feed

There is a lot of difference to taking a landlord insurance quote and getting a quote for insurance for home and buildings. If this is the first time that you have looked for a buy to let insurance policy, you may be surprised at the differences between the level of risk that insurers perceive between the two types of buy to let policies.

Structure

One of the main differences is that you have tenants in the property and these may not look after the property as the single owner might. After a storm or a fire, tenants simply do not have the financial incentive to take the swift and decisive action that you do. There is also the risk of damage due to vandalism when you have tenants in a property.

Financial

Apart from the bricks and mortar element of the insurance policy that relates to the structure of the property, a landlord insurance quote may typically protect the financial side of your investment. You may wish to check whether the insurance policy offers protection against a loss of rent due to one of the insured risks. So if the property catches fire and becomes vacant as a result (assuming that fire is an insured risk), the policy might cover the loss of rent during the time it was vacant during the repairs.

You might also want to check out the liabilities that may derive from being a landlord. In today’s compensation culture, landlords often find themselves on the receiving end of claims for compensation from third parties who have suffered accidents or injuries on the property. Accordingly public liability insurance is often a component part of buy to let cover.

Depending on the size and scale of your investment, you may also have people working in your property for you from time to time. If this is the case you may have to consider employers liability insurance. However, do note that typically standard landlord insurance quotes do not include this element of cover.

The price

Once you have collected a few landlord insurance quotes, what can you do to manage the price? If you can pluck up the confidence to seek discounts, you usually find that you could save yourself a few pounds. Do you have more than one property to insure? If so, ask what savings a portfolio policy might offer you. Have you got a no claims bonus on another property? Ask if your insurer will offer you a discount on this basis. After all, it is proof that you are a careful person who takes their responsibilities seriously.

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