If you have ever been attracted by an advertisement headlining “cheap landlord insurance” only to be subsequently disappointed in the final product, you may have wondered what was going on.

The myth of cheap landlord insurance

Any advertisement proclaiming low-cost landlord insurance should be treated initially with a little healthy scepticism. Why?

Principally because:

• the cost of landlord buy to let insurance is typically related to the nature and breadth of the cover it provides;
• a very low-cost policy may be suitable for someone in a situation that is significantly different to yours but for you, such a policy may not be suitable and therefore its cost, for you, is rather academic;
• for you, a policy that provides cover to the extent demanded by your situation, may be ‘cheap at the price’ even though it may be more expensive than some other policies;
• the bottom line is quite simply that what is cheap landlord insurance for someone else may not prove to be cheap for you but rather just inapplicable.

Landlord insurance – cover compromises

In the case of some landlord insurance, you may find that:

• contents cover may only be offered on a market valuation (as opposed to new-for-old) basis;
• there may be exclusions and limitations relating to flood or subsidence damage to your property;
• third party liability insurance cover (something that may be very important for landlord insurance) has a lower maximum cover level and it may not include cover for legal fees – a cost you may incur even if you win the case;
• the policy may not cover wilful damage caused by malicious tenants;
• the policy may not offer the cover you require for external areas of your property including things such as garden equipment, sheds and external garden walls etc.

As a general rule, it might pay to look very carefully indeed at the cover provided by any policy selling itself primarily on the basis of being cheap landlord insurance. If you have any doubts as to what landlord cover is the most suitable and cost-effective policy for you, please feel free to get in touch and we can help you find appropriate cover at a price that is realistic.