When you’re a property owner looking to rent out your property, one of the first questions on your mind might be, “How much is landlord insurance?” Understanding the cost of landlord insurance is crucial in managing your expenses and ensuring that your property is adequately protected. In this blog, we’ll explore the factors that influence the cost of landlord insurance in the UK, provide an overview of average costs, and offer tips on how you can find the best deal.
What is landlord insurance?
Landlord insurance is a specialised policy that covers rental properties, offering protection against risks like damage, loss of rent, and liability claims. It’s different from standard home insurance, as it’s tailored specifically for landlords. For a more detailed explanation, check out our in-depth guide on what landlord insurance is.
Factors that affect the cost of landlord insurance
The cost of landlord insurance varies widely depending on several factors. Here’s what typically influences the premium:
- Property type and location: The type and location of your property are significant factors. A detached house in a low-crime area might cost less to insure than a flat in a city centre with higher crime rates. Similarly, properties located in areas prone to flooding or other natural disasters might attract higher premiums.
- Property value and rebuild cost: The value of your property and the cost to rebuild it directly impact the insurance cost. Higher property values generally lead to higher premiums as they represent a more significant financial risk to the insurer.
- Level of cover: The amount and type of cover you choose will also affect the cost. For instance, a basic policy might cover just building insurance, while a more comprehensive policy might include contents insurance, loss of rent, and legal expenses. More cover generally means a higher premium.
- Tenant type: The type of tenants you have can also influence the cost. Students and DSS (Department for Social Security) tenants are often considered higher risk by insurers, which can lead to higher premiums. On the other hand, professionals or families may attract lower premiums.
- Claims history: If you’ve made claims in the past, insurers may consider you a higher risk, which could increase your premium. A clean claims history might result in lower costs.
- Security features: Properties with better security measures such as alarms, CCTV, and secure locks can benefit from lower premiums as they are deemed less likely to be targeted by criminals.
Tips for reducing costs
While the cost of landlord insurance can seem high, there are several strategies you can use to reduce your premiums:
- Compare quotes: One of the most effective ways to save money is to shop around and compare quotes from different insurers. Make sure you’re comparing like-for-like policies to ensure you’re getting the best deal.
- Increase your excess: Opting for a higher excess (the amount you pay towards a claim) can reduce your premium. However, be sure that you can afford to pay the excess if you need to make a claim.
- Bundle policies: Some insurers offer discounts if you bundle your landlord insurance with other types of insurance, such as contents or car insurance.
- Improve property security: Installing better security measures, such as burglar alarms and secure locks, can lower your premium. Some insurers offer discounts for properties with enhanced security.
- Maintain a clean claims history: Avoiding claims can help keep your premium low over time. Consider handling minor repairs or issues out of pocket to maintain a no-claims discount.
Summary
Landlord insurance is an essential expense for property owners who rent out their properties, providing peace of mind and financial protection against a range of risks. While the cost can vary significantly based on numerous factors, understanding what influences these costs can help you make informed decisions.
Landlord insurance
Understanding the cost of landlord insurance is essential for budgeting your property’s protection. Contact us for a quote and see how affordable comprehensive cover can be.
