Savvy landlords shop around for their insurance
Savvy landlords will shop around for the best property owners or landlord’s insurance deal available. However, the British Insurance Brokers Association (BIBA) has warned against choosing the cheapest offer around, just because it is cheap. Going for the cheapest insurance deal will not necessarily mean that you are fully covered.
It is very tempting, sometimes, to overlook the importance of property owners or landlords insurance, when renting out a property. There are often much more pressing issues to be considered first; including, ensuring the property is habitable, securing a letting agent and more importantly finding an appropriate tenant. However, be wary about rushing into buying insurance and always going for the cheapest deal.
Graeme Trudgill, technical and corporate affairs executive at BIBA, said: “At the end of the day, it is not just about price. It is actually about having the right cover and suitable protection for you.”
The best way to ensure that you get the best value deal around is to talk to your local insurance broker. They will be able to provide you with advice on buying Landlords Insurance including; what is covered, what is not covered, what it costs, what to watch out for, what options are worth having and legal advice.
Be aware of restrictions in cover whilst the property is unoccupied and if your property is near a lake, river or sea, or any kind of water, check that you have adequate cover against flooding. Some insurers will insure your property if you are in an area of flooding but exclude damage due to floods. Some people forget to insure their property for the cost of rebuilding, rather than the resale value of your property. By having a comprehensive property owners or landlords insurance policy you should not have to worry about rent being in arrears as many comprehensive insurance policies offer a rent guarantee, which protects landlords against tenants who fail to pay up.
Don’t be fooled into thinking that you should always go for a cheap insurance deal. Property owners insurance and landlords insurance is more complex and you should ensure that you are fully covered. Be a savvy landlord and use an insurance broker to ensure that you are fully covered with the cheapest deal around.