How to assess a landlord insurance quote
Sometimes when you’re shopping around for insurance, it can be difficult to know which provider to choose. You have the prices in front of you, but as many premiums are of comparable cost, what factors should to take into account to distinguish between landlord insurance quotes?
How can you pay?
Depending on your circumstances, it may be really important to be able to spread the cost of insurance premiums by monthly instalments by direct debit. Likewise, others prefer to pay at once out of their bank accounts or credit cards.
Are you comparing like for like?
With buy to let building and contents landlord insurance quotes, comparing the prices alone is not enough. You need to examine the draft policy schedules to make sure that you are comparing policies that offer the same level of cover. So if one policy seems particularly cheap, make sure that it includes the core risks that could affect the structure of a building like fire, flood etc.
But you should also check (as far as you can) that a similar level of customer service is being offered. Are the staff professional and efficient, and are they available to help you at the times when you need them?
What about the excess?
You are probably familiar with the concept of an insurance excess from your private motor insurance policy. But this issue can sometimes be overlooked in a landlord insurance quote. An excess is the level at which an insurer sets the minimum level for a claim. So if your property suffers damage for which the repair bill is smaller than the excess, you will have to pay for it yourself.
If you are the kind of landlord who attends to minor jobs yourself then a high excess may not be a problem. If on the other hand you pay a contractor for everything, this is something that needs careful consideration.
Are there any discounts on offer?
Depending on how you obtain the prices for landlord insurance quotes, you may not have details of all the discounts that insurance providers offer. It could be worth asking if they offer discounts for:
- no claims history from other providers;
- a well secured property; or
- properties insured as a portfolio.
What else is available?
Aside from the core buy to let insurance, UK providers may often offer additional extras for a cheaper price. For instance, some may offer discounted contents insurance if you buy combined buy to let insurance cover. In some cases however, tied in deals may not be the most competitively prices, so investigate all the options when considering a landlord insurance quote.