If you are a landlord, you probably spend a significant amount of your time trying to manage your costs downwards.
You may have opportunities to do so with your let property insurance as well.
Here are a few ideas that may help. Do please remember that these are ideas in principle only. They may not be specifically applicable to your current letting situation or your existing let property insurance.
You may wish to consider:
- making sure you are using a specialist provider of landlord insurance. Some generalist providers may not have the experience and expertise in this sector that is required to produce specifically crafted policies that match your unique circumstances and at a cost-effective price;
- ask your policy provider if they offer options to voluntarily increase the excess. That is the sum of money you will be obliged to pay towards the cost of any successful future claims. In some cases, you may have the option to agree a higher excess amount and thereby see a lower premium in return;
- look carefully at your existing let property insurance policy to see whether or not you are paying extra because of the tenant categories you let to. This can be a complex area. Some policies may exclude entirely, certain categories of tenant such as asylum seekers, housing benefit recipients and students. Others may cover them but only at the cost of a significantly increased premium. Yet other policies might offer “any tenant” cover included as standard;
- carefully review the cover levels you have specified for your contents. Though perhaps not common, it is far from unknown for some landlords to significantly over-estimate the total value of their possessions. That might mean you are paying more to cover them than is justified;
- in situations where your property is a mixed residential–commercial one, be certain that you have appropriate insurance in place. If your tenants are living in a flat above a shop and they are using the shop as an active going concern, you may need specific cover. If the shop component is abandoned or simply not being used and your tenants are purely domestic, living in the flat above, you may need a different type of cover. If you are paying for the most expensive financial and commercial cover but not using it, you may save money by changing;
- try to avoid making relatively minor claims on your policy. This, of course, needs to be a medium-term strategy and won’t save you money overnight but keep in mind that your no-claims discount is likely to be worth a significant sum of money to you. If that sum is higher than the value of a small claim, it might be sensible to pay the claim out of your own pocket and retain your no-claims discount.
Finally, remember to use your let property insurance provider. Ask them for other ideas about ways in which you might be able to reduce your premium!