9 Things To Check When Buying Landlord Insurance
Steve Cox, Business Account Manager at Alan Boswell Group, explains the key points you should focus on when looking for landlord insurance
Comparing landlord insurance products can be hard work. While it"s easy to get quotes from multiple insurers, you may find there"s lots of information to wade through and that you struggle to spot the differences.
So how do you find the right policy for you? Here are my top nine things to look out for when comparing landlord cover products.
1. Additional fees
Some insurance companies will hook you with a cheap premium, but charge hefty admin fees for making changes or cancelling your policy. While checking for these fees, it"s worth looking at the payment options to see whether there are any charges for paying monthly. These fees can quickly put the price up.
2. A UK-based claims team
Insurance is a funny purchase: it"s one of those things you buy but never want to use.
However, if you do make a claim, you"ll quickly discover that you get what you paid for. Ensuring you deal with a UK-based company with its own claims team should help you through a difficult time.
At Alan Boswell Group, we have an in-house claims team with delegated authority. That means we can deal with claims up to a certain value, so you aren"t always referred back to the insurer.
3. Loss of rent cover
If you have a claim, most landlord insurance should include cover to provide an income if your tenants have to move out.
4. Cover for malicious damage by a tenant
One of the most common claims is for malicious damage by a tenant. When comparing the details of any policy, make sure it"s included or can be added on.
5. Excess value
Some claims occur more often than others and may have higher excesses applied. Escape of water is the most common property claim and will often have a higher excess than others. There is generally a standard policy excess, with specific excesses (for instance, for escape of water) highlighted in your quotation documentation. Make sure you read them and are happy with what you"re signing.
6. Terms and conditions
All insurance products have conditions that must be adhered to, for example, making sure there"s a tenancy agreement in place. While this may seem obvious, if you"re renting to friends or family you may not have a formal agreement, which could cause problems if you make a claim. Read them carefully so you know exactly what you"re agreeing to.
It"s also important to note that some insurer"s quotes vary depending on the type of tenant. If their circumstances change and they go from a working professional to someone on Housing Benefit, your premium may change. You should also be aware that some insurers are not keen on HMOs.
7. Cover for manufacture of drugs
This cover comes into action if a tenant damages your property through production of drugs. Cannabis farms, for example, can lead to the destruction of properties and failure to have this cover could ruin your investment.
8. Unoccupancy rules
We would all love our tenants to stay forever, but when the average length of a tenancy is less than a year, it"s likely you"ll have a period where the property is unoccupied. Insurers vary on how long they will cover unoccupied properties - some will give cover for up to 90 days, while others restrict cover immediately.
9. Independent reviews
Whether you look at product comparisons, service reviews or company awards, the internet is invaluable. Check out whether the company you"re about to place your trust in has the trust of its customers.
If you"d like to know more about Landlord Insurance, give us a call on 01603 216399 or visit www.alanboswell.com