What is Residential Landlords Insurance?
‘Residential Landlord Insurance’ commonly known as ‘Buy to Let Insurance’ are terms used when describing a specific policy designed to cover a property owner who receives remuneration for providing residential accommodation. Alternatively, if the property is occupied for commercial use a ‘Commercial Property Owners policy’ will be required instead.
Here are 5 top tips to keep down your Landlord Insurance Premium;
1. Make sure you have the correct ‘Buildings sum Insured’
To ensure you are paying the correct premium, make sure that you have the correct sum insured. House rebuild costs (depending on your property location) are generally lower than the property value. A common mistake is to give the value of the property as the sum insured, which in turn will make your premium higher.
To obtain an accurate price it’s essential to ensure you have the correct sum insured. The best way to find out is from a professional survey of the property or if you haven’t had one recently visit the Association of British Insurers who will assist in getting the correct figure.
2. If you have more than one property put them all on one policy.
If you have a portfolio of properties Peacock Insurance can give you some considerable saving on your premium. Instead of insuring your properties individually you can add them to one policy with one common renewal date. The savings made can be huge with no difference in the cover you will receive. You can start the policy off and when your other polices fall due for renewal simply add them onto your policy. With Peacock you can also add other types of properties like shops and offices to the same policy and receive the same discounts.
3. Add a Voluntary Excess to your policy
By adding a voluntary excess to your policy you will be unable to recoup that amount of money specified in the event of a claim. However the savings can be worthwhile, for example, with some insurers a voluntary excess of £100 can give you a 15% discount which can make a noticeable difference to your premium. Note - This is in addition to any compulsory policy excess.
4. Try to get tenants with a professional occupation
If you manage to rent your property to professional people who are in full time employment you can make some remarkable savings on your premium. Some insurers won’t quote if your tenants are Students, DSS or Asylum seekers.
5. Get an intruder alarm on your property
This sounds like common sense but it’s amazing how many people forget to add security to their rented properties. It’s possible to save up to 10% on your premium.
However, every Landlord’s requirement is different. Some Landlords require ‘contents only’ policies for their flats. Some Landlords have empty properties and others have converted properties such as bed-sits which some insurers regard as higher risk.
