Choosing the right landlord insurance: What every landlord needs to know
Choosing the right landlord insurance can be overwhelming, depending on the type of cover you want.
Landlords may assume landlord insurance covers every scenario, but that’s not often the case.
Here at Property118, we’ve teamed up with The Home Insurer, which helps provide a top-class service to ensure you get the right policy and could help save you money.
Standard landlord insurance won’t cover you for specific things
Starting with a price comparison website can be a good way to get a general overview, but it may not be the best option if you’re looking for something specific.
Remember, standard landlord insurance typically only covers the basic structure of your property, such as windows, pipes, cables and doors.
However, if you’re a landlord considering subletting, standard landlord insurance won’t cover you.
Jason McClean, director of The Home Insurer, says sometimes landlords don’t even realise they are subletting.
He explains: “We have landlords come to us who sublet and some of them don’t even realise.
“Landlords might sometimes have a local council putting in benefit-assisted tenants into their properties, the contract is between the landlord and the council, but the tenancy is between the council and the tenant which is a totally different sort of insurance you need.”
He adds: “Many landlords don’t see that and just stick their head in the sand and go to another insurance company to find the cheapest quote possible and if they’ve had a claim, they’ll get it refused which is a real shame.”
Unoccupied properties need specialist insurance
If you are a landlord whose property is empty, either because tenants have moved out and you’re waiting for new ones, or due to redecorating or maintenance, you may need specialist insurance.
Empty properties are at greater risk of being damaged or broken into, as there’s no one around to deter burglars or spot issues like leaks.
Most unoccupied property insurance policies cover homes that are empty for more than 30 days, but some specialist insurers can offer cover for up to 12 months.
Jason says: “If unoccupied for less than 30-days then your existing policy may still offer cover – but you need to read the policy conditions to be sure. If you know the property will be unoccupied, I suggest you consider moving to a specialist policy as quickly as possible, as it gives the most appropriate cover.
“There are various levels of unoccupied insurance you can buy but we recommend full cover as the best option. That way you can have confidence if you make a claim. The price difference between reduced FLEA (Fire, Lightning, Explosion, Aircraft perils only) and full cover is often not that different, so a prudent landlord will look to full cover.”
He adds: “If you are having works done on the property whilst unoccupied then you need to tell us. This may need to trip over to renovation insurance; another specialism of ours and one that shouldn’t frighten landlords but give them confidence they are properly insured.
“Again, cost in most cases is not that different from let or unoccupied insurance. Whether unoccupied or renovation, there will be specific endorsements such as visiting the property and turning on the heating you need to comply with.
“Once the property is occupied or works are finished, it’s normally easy to switch back to landlord insurance too, just let us know the tenant type and when they move in. The best thing you can do is call us to talk through what you need and we will do all we can to help.”
Many add-ons to choose from
With landlord insurance, there are many add-ons you can choose from, such as contents cover for furnishings inside the property. This does not include the tenant’s belongings, which would need to be covered by a separate insurance policy they arrange themselves.
If your tenant causes damage, cover will depend on your insurer and the type of policy you have. For example, if a tenant accidentally overfills a bathtub, then accidental damage insurance may cover it.
However, if the damage is done on purpose, you may need to look into adding malicious damage cover to your policy.
Comparison websites can include hidden costs
When shopping around for landlord insurance, you might think the cheapest quote is the best option but cheaper doesn’t always mean better service.
Landlords should carefully read the small print, as online comparison websites sometimes offer the cheapest policies with the least amount of coverage.
The Home Insurer prides itself on delivering the best service and puts clients at the heart of the business.
Jason says: “I think we try to solve property insurance problems for people at the best price possible. Saying that, there may be somebody out there who can get a cheaper quote but with us, you get what you paid for.
“If you go for the very lowest possible quote with a different insurance company, whenever you have a claim or need to speak to that insurer, you probably won’t be speaking with the same person. You may not welcome the long phone waits, multiple menu options and being cut off either; that’s my experience of big call centres and think many feel the same.
“Here at The Home Insurer, you can ring us up and speak to the same person who deals with your policy all year long. There is only a 15-second FCA prescribed message before you are talking to a real person.”
It’s also important to remember that comparison websites can include hidden costs, while insurance brokers are required to be fully transparent about any fees involved in arranging your policy.
For peace of mind, brokers are regulated by the Financial Conduct Authority (FCA), and your fair treatment is further guaranteed through the Financial Ombudsman Service.
The Home Insurer is authorised and regulated by the FCA and are a member of the British Insurance Brokers Association (BIBA).
The Home Insurer has earned several prestigious awards for its exceptional customer service, including the respected 2020 UK Customer Service Excellence Award for Best Customer Retention and Loyalty. Most recently, it won an award within its home county of Northamptonshire for high levels of service.
The most efficient way to get a personal quote with the best price and cover possible is to call the team on 01832 770965 so they can focus on your enquiry when you are ready and sitting down with your portfolio details to hand.
Alternatively, you can use the form below to request one of the team to give you a call back.
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