According to a report by the Telegraph, one in five homes in the UK are rented. Well, there are over 26 million houses in the UK, so that suggests well over 5 million homes owned by a landlord. Our company data indicates that the average number of homes owned by a typical landlord is just over two. Adding that calculation into the mix, it’s a safe bet that 2.5million people in the UK are landlords.
With that kind of potential client base, it is no wonder that there is now an almost limitless number of landlord insurance providers. It seems to be magically getting cheaper and cheaper, with offers to beat your current premium ‘guaranteed’ and suggestions that your cover might not be as good as the one on offer.
It must be very tempting to try and save money on your insurance, especially at a time when the Government has decided to really go after landlords with their triple whammy of the hike in Insurance Premium Tax, removal of tax benefits and hike in stamp duty. But before you shop around you should always make sure you know exactly what you’re shopping for.
Why buying landlord insurance is like buying a car
If you went out to buy a car you’d like to think you’re going to get a steering wheel and four wheels – but you’d be foolish not to look under the bonnet, check the safety features, the warranty and the running costs. You’d also probably be quite happy to consider added benefits or optional extras. One thing is for certain, you wouldn’t just go for the cheapest car you could find. Well, you might – but you wouldn’t expect a lot in return.
It’s the same story with your landlord insurance. You can get the cheapest option and you’ll have inferior cover; you might have large excesses to consider, limited cover and more often than not an almost non-existent support package. Be prepared to pay a bit more and your cover will improve accordingly. You should know exactly what kind of risk you’re exposing yourself to.
So – let’s go back to that car analogy. Would you buy that car just by looking at it? Or would you like someone to tell you about it? If you had the choice would you like someone who is desperate to sell it to you or someone who genuinely wants to understand what you need and make sure you get the right car? Let’s be honest, there is no point buying a muscle car if you’re only driving to the shops on a Sunday.
Finding great value insurance
A comparison site won’t offer you any advice; an insurance company will try and sell you their product and only their product; an insurance broker can offer advice but might be beholden to an insurance company but an independent insurance broker can take the time to listen to your needs offer you independent advice and explain what they believe is the right package for you.
Imagine if that broker just also happened to be the ‘Independent Broker of the Year’, had a 98% service rating from their clients, were ‘Service suppliers of the Year’ at the Landlord and Lettings Awards, had over 30 years’ experience in the sector and offered five-star rated landlord insurance products at costs which were highly competitive. You might just be on to a winner!
Of course, it’s completely up to you how you choose to buy your car in just the same way it’s up to you how you buy your landlords insurance but we believe the best advice we can give you is to get advice.
It might just save you more in the long run.
If you’d like to have a chat with us about your landlord insurance give us a call on 01603 216399 or we can call you back.