Successful landlords need to master many different business management skills.
One of those is cost-containment and that in turn means some focus should be put onto the cost of landlords’ insurance.
Keep price in context
It’s going to be important to try and keep some control over the cost of your various forms of insurance cover. However, before discussing how to save money on landlord insurance, it’s important to say a word or two about balance.
It’s something of a cliché but even so, do remember that any insurance policy exists to provide you with financial protection.
If you need to call upon that for assistance in the event of a claim, you won’t care how much the policy originally cost you. What you will care about is the cover it provides!
So, don’t go shopping for landlords’ insurance based on the lowest cost. Look closely at the cover offered as well and compare the cover on a like for like basis.
Take a higher voluntary excess (if possible)
Some policies might permit you to opt for a higher voluntary excess – that’s the amount you agree to pay towards the cost of any future claims.
If they do so, the savings on your premium might be significant.
Combine your policies (if possible)
Insurance providers like to offer incentives to take more of your business. That’s normal commercial life.
What that means though is that if you’re able to offer them not only your buildings cover but also things such as your contents and perhaps other forms of your insurance, you may benefit from more attractive pricing.
Another option here relates to landlords with multiple properties. Putting them together in a package through one insurer might yield real cost savings.
Construct specific packages of cover
There’s little point in paying for insurance you don’t need.
So, if a landlords’ insurance policy automatically includes cover for contents whereas you’re letting unfurnished, you may wish to remove that element of protection from your policy. That assumes, of course, it’s something the provider can accommodate and that you’ll see a price reduction as a result.
In passing – be a little cautious on this one. Check that the buildings-only component includes cover what you think of as “fittings” but the insurer might define as “contents”.
Think about high-risk tenant categories
Some policies might cover all tenants but others might exclude, from standard cover, what the insurer regards as “high risk” tenants. That might include students, asylum seekers and housing benefit recipients etc.
If you’ve selected a policy that differentiates between tenant categories, you may wish to look for one offering “any tenant” cover if you wish to avoid extra charges or gaps in your cover.
Don’t make small claims
The biggest single cost-saving element when trying to save money on landlord insurance is likely to be your no claims discount/bonus.
It might make little sense putting that at risk by making relatively small claims. Do your sums carefully first to see just how much that claim is likely to cost you if it results in your discount being lost.
You may find that specialist providers of landlord cover are able to source more appropriate and therefore typically more cost-effective solutions, than what might be termed “generalist insurers”.
It’s worth making the effort to check!