As I sifted through the post this morning I thought to myself ‘how time flies‘ – my landlords insurance is up for renewal again.
It’s nowhere near as painful as it used to be though. Several years ago it dawned on me that for some reason a very high percentage of landlords insurance policies are renewed on 1st September. I’m not really sure why so many come up for renewal on that date but it got me thinking. What if I could round up a few friends who also have a lot of property and try to negotiate a better deal with a broker based on them having an opportunity to quote for all of our business?
That’s exactly what I did and the first broker to take us up was Alan Boswell Insurance Brokers. They served us well for many years but eventually we had a bust up with them and have moved on several times since to whichever broker is prepared to offer us the best deal at the time. We definitely get a better deal by presenting brokers with opportunites to quote for large amounts of business, that’s for sure!
I’m not an insurance broker, I never have been, but I do know enough about insurance to know a good deal when I see one. Word spread of our group and before long other landlords realised that negotiating on mass could result in significant savings. Our group now comprises of several hundred landlords. Not all of them stick with the group as some of them still manage to find find better deals elsewhere, usually because they operate in a property niche or a location which the groups chosen insurer for the year doesn’t really want to do business in. Nevertheless, a lot of us save a lot of money.
We thought about charging a membership fee to join the group at one point but that would have got very complicated, especially for members who ended up getting a better deal elsewhere and we certainly didn’t want to deal with complaints. In the end though we settled on a dealing with brokers who offered us a fair share of their commission from the insurers and everybody seemed to be happy with that. The bottom line was that if they could get a better deal elsewhere they were perfectly free to do so.
Obviously price is important but there are other considerations too. Members of the group are advised but not compelled to include the following in their landlords insurance renewal quotes:-
- Landlords liability insurance
- Cover for malicious damage caused by tenants
- At least £5,000 of contents cover per property
- Loss of rent cover in the event of having to re-home tenants due to works undertaken which are covered though insurance
If you would like to see whether you can save money or get better cover for the same or a lower premium it is completely free to join our group. Simply fax your name, address and telephone number together with your last insurance schedule and your renewal notice to 01603 428545. We will then get the groups selected brokers for the year to call you. Alternatively, you can scan and email the information to email@example.com
We can’t guarantee you will get a better deal but it can’t hurt to see can it?
About Mark Alexander
Mark and his family have been investing in property since 1989, initially in the Norwich area but more recently across the length and breadth of England. Mark created Property118.com as a social network for landlords with a vision of becoming the UK's best respected online property community. Mark is also a freelance internet marketing consultant to law firms Email - firstname.lastname@example.org