When you’re considering renting out a property, one of the costs you’ll need to budget for is insurance. But what does landlord insurance cost?
That’s not an easy question to answer.
The cost of landlord insurance is affected by a number of different factors, which are dependent on you, your property and your tenants. These will all be taken into consideration before an insurer gives a quote. Here’s a brief summary to give you more of an idea of the factors involved.
Both your personal insurance history and the insurance history of the property you’re letting out will be taken into account when calculating the cost of your landlord insurance. The type of building you are insuring will also affect matters – factors such as the age of the property, whether it’s a house or a flat, the number of rooms and so on play a role. An insurance company will also want to know the type and number of tenants you’ll be letting to – whether they’re students, in full-time work, unemployed, and whether full tenant referencing has been undertaken.
Level of cover
Another element that will affect the cost of your cover is how much cover you take and to what level. Landlord building insurance is essential, and this will be based on the estimated rebuild cost of your property. You’ll also need contents insurance for the property’s fixtures and fittings. Again, the cost of this depends on the value of the items you need to insure, although this is often calculated based on the number of rooms in the property, with the contents insured to an average value for a house of that size. The tenant(s) will have to obtain their own insurance cover for personal possessions.
Extra insurance cover
Optional extra policies for landlords include legal expenses cover, rent guarantee insurance and home emergency cover for sudden crises, such as boiler breakdowns. While this might not sound essential, you’ll be glad to have this extra cover in place if you find yourself dealing with a problem tenant or an unforeseen disaster.
Be honest when arranging your insurance
It’s important to be as honest and accurate as possible when applying for landlord insurance, because skirting some of the facts to get lower premiums will backfire when you try to claim. You might find that you are not insured for the full amount you need to put matters right if you have not made a full disclosure upon application. In some cases being less than honest may invalidate your claim altogether.
It’s important to be as honest and accurate as possible
Finally, remember that cost and value are not the same thing, and you get what you pay for. The best idea is to give us a call and let us give you a personalised, competitive quote based on your circumstances. You’ll be very glad of the appropriate cover should you need to make a claim.