As you already know there is a myriad of landlord insurance providers out there to choose from. That’s great news for you! But with so much information online, could you get it wrong ?
With so many different features, covers and options it is often hard to know what to include, what to exclude so you get the balance right and at the same time keep prices low.
We want you to make the right choice first time as getting it wrong could have consequences. Our job is also to make things nice’n easy for you.
Here at Titan Insurance we have put together a step-by-step guide to help you choose the right Landlords Insurance for you.
1. Go to a Specialist Property Insurance provider
Regular home insurance isn’t enough when you’re letting a property – you’ll need specific Landlords Insurance. To get this right, speak to a specialist property insurance broker for advice on what policy is right for you. This is where you must get it right.
To buy the best policy, give all of the important details and don’t leave anything out. Remember to tell them if the property is residential or commercial, furnished or unfurnished, occupied or unoccupied, short or long term and what coverage you want.
2. Don’t automatically buy online
Be careful and don’t assume that it’s always best to buy landlord’s insurance online. It might seem quicker and easier, but you could end up choosing the wrong product – with bad results. You need to know exactly what you require and if you end up guessing, you could make an expensive mistake!
Plus, there’s great value in a 121 relationship. A simple phone call lets you ask an expert all the important questions on the policy, coverage, exclusions and more, getting you the right coverage, first time.
3. Remember the difference between Buildings and Contents insurance
Buildings insurance is the minimum insurance you need to remember! This protects your property against damage from things like subsidence, fire, flooding, storms and even vandalism. It also covers rebuilding the property should complete damage happen. Insurers will need you to tell them the ‘rebuild value’ of your property. This is different to the market (sale) value and is the cost of rebuilding the property from scratch.
Ask a surveyor or use a Rebuild Value Calculator like the one provided by the Buildings Cost Information Service (from the Royal Institute of Chartered Surveyors) so that you don’t over or underinsure! And you should also update your insurer if the rebuild value changes – which will naturally happen over time and more quickly if you do any significant work on your property.
Don’t forget that you may need to take out Contents Insurance. If you are letting out a residential property and including white goods in the kitchen for example or if you are letting out a commercial property with fixtures and fittings included, you want to ensure that any damage to the contents provided by you is covered by insurance. This may be added in as a bonus in your Buildings Insurance premium or you may need to request separate coverage.
4. Consider taking out Legal Expenses cover
It’s easy be optimistic and think that you won’t need any Legal Expenses cover. We hope that letting out your property will never lead to any situations where legal expertise is needed.
But if the worst does happen, such as a dispute with tenants, it is better to be prepared. The costs of legal advice can quickly escalate and become a huge financial burden. Always consider taking out Legal Expenses cover as part of your insurance.
5. Think about Rent Guarantee cover
What would happen if your tenants are unable to pay their rent or if your property is vacant and there isn’t any rent coming in? It makes sense to think about Rent Guarantee cover so if this happens, you are guaranteed an income. Something as simple as Rent Guarantee cover can give you the reassurance to know that you can avoid loss of income – especially vital if you need to pay a mortgage on the property.
6. Reduce your payments by increasing your excess
It makes sense to be cost conscious when buying insurance and to make sure you are getting real value for money. If you want to to reduce your premium payments, increase the excess you would need to pay if you make a claim. It is worthwhile to think about whether this option would appeal to you.
7. Be up-front about your claims history
It is crucial to be honest and clear when taking out a new Landlords Insurance policy. If you have made any claims before, give all the necessary details. You need to be transparent to make sure you get the right coverage and avoid any chances of future claims being rejected.
8. Cheapest doesn’t always equal ‘best’
It is easy to think that the cheapest option makes the most financial sense as it saves money. But, the saying is true that you get what you pay for.
Carefully review what is included in your Landlords Insurance policy and the level of coverage that you are buying – never assume anything. If the cheapest option doesn’t include everything that you need, do not buy it. Make sure you are paying a reasonable price for exactly what you need.
Titan Insurance Services Limited has been delivering specialist insurance for over 25 years. We are proud to use our knowledge, expertise and industry relationships to provide you with the best policies to meet your needs. There’s no need to worry about online applications – we give unbeatable service over the phone, quick quotes and fast cover!
Give us a call on 0207 731 3700 or drop an Email us to ask us any questions.