Five Top Tips for Lowering Your Landlord Insurance Premiums

Here at QuoteSearcher we pride ourselves on helping customers find the lowest possible prices for things like landlord insurance, but even though checking out…

Image of houses on pound coinsHere at QuoteSearcher we pride ourselves on helping customers find the lowest possible prices for things like landlord insurance, but even though checking out the market is one of the best possible things you can do before buying a landlord insurance policy, it’s not the only thing. Your policy is determined by the way you manage your property and there are some small, subtle changes you can make to help lower your premiums.

While none of the below tips are guaranteed to lower your premiums, all of them could potentially make a difference, so it’s definitely worth a try before your next renewal!

Tell Everything

The reason insurers ask so many questions about your property is so they can minimise your risk. If you omit answers to any questions, your insurer is obliged to presume you’re in a high risk bracket for whatever category you’re in. This could mean that your premium is higher than it actually needs to be.

Alongside this, there is the risk that your insurer could find your claims invalid because of a missing piece of information on your original application. It’s not only prudent to fill in all the boxes, but it’s essential, as you could be committing fraud otherwise and this won’t do your premium any favours in the long-run.

Cover More than One Property

We all know about bulk-buy discounts for things such as food, but you might not know that if you can cover more than one property on the same insurance policy you may also be entitled to a discount. Almost all insurance providers offer some kind of multi-purchase discount, although you might find it’s called ‘portfolio’ cover or something similar in many cases.

The reason for this discount is because insurers only have to profile your risk once before giving you a policy. While they may need some specific information about each individual property, in general sticking with the same insurer will buy you a much better policy than having two properties insured by two different companies.

Think About the Cover You Really Need

Perhaps you don’t have time to read all of the small print on your insurance policy, but you should at least skim over the most important points. Most insurers distinguish between contents and buildings cover and will usually include some degree of contents cover as standard. Of course, if you’re letting a property unfurnished, you probably don’t need the contents aspect.

Equally, if your policy excludes something like fire damage, this might be something that you really need if your property is at risk. While, of course, getting it covered will cost you more, in the long run it could well be the difference between a small premium boost and an enormous outlay.

Compare Multiple Companies

Here at QuoteSearcher we can’t stress the importance of comparing your landlord insurance quotes against the whole market. Each individual insurance company uses a different underwriter, each of whom has a different appetite for risk and diverse clients. Only by surveying all of your options can you really get a feel for what’s out there.

This is likely to make the biggest difference if you’re a first-time landlord or letting to risky tenants. While most companies are reasonably happy to insure standard buy-to-let investors, the appetite for more unusual kinds of landlords and their properties varies enormously over time.

Avoid Needless Claims

Your landlord insurance is unequivocally there to help you out and you should therefore use it whenever you need. However, beware that any claim you make will impact your premiums so you should try to avoid claiming unless you really need to.

The best way to judge this is to use your excess. If all of your claims have a £100 excess, then that £170 replacement might not be worth it. Making a claim is almost certain to put your policy up slightly, and you’ll probably lose out on that £70 you’ve made back over the next couple of years.

Saving money on your landlord insurance premiums needn’t be hard, but it does take a little bit of time. However, the difference between a well thought out quote and the first quote you find can be enormous, and customers can easily save hundreds of pounds by investigating the market. If you can save yourself a substantial amount by taking an hour to do some research it might just be the best paid hour you’ve ever spent!

Photo by Images of Money / CC BY 2.0