Looking for ways to save money on insurance is, for most people, a perfectly natural instinct.
True, it can be a little dangerous to become fixated on the price associated with a policy to the detriment of thinking about what cover you are getting for the money. Nevertheless, trying to keep costs down will always be a major objective for most policyholders.
Here are a few ideas as to how you may be able to do so in the context of let property insurance.
Look for the broadest available cover
At times, an insurance policy may seem to be available at a stunningly attractive price but upon inspection, it may become apparent that it contains numerous exclusions or other gaps in the cover it provides.
What can then happen is that as you add elements that are tagged as “optional”, typically at cost, the price starts to climb. At that stage, it may be the case that the policy is now costing more than another one which had those elements included as standard, at the outset!
Just one example here might be subsidence cover. Not all policies include this as standard and adding it in as an optional extra can change the overall price significantly.
Exploit the discount options where they exist
Some policies are relatively rich in discount offers. Others may be less so.
If you’re in a position where you can take advantage of those offers, you may save substantial amounts of money on your let property insurance.
Examples might include:
- fitting alarms and other enhanced security devices to your property;
- agreeing to take a higher voluntary excess on the policy (that is essentially the amount you will agree to pay towards the cost of any successful future claims);
- consolidating several properties under one property portfolio insurance deal with the insurer – where you, as a landlord, have more than one property.
There may be many other examples that are worth looking for.
Conduct annual let property insurance reviews
There is a balance to be struck between having an established and good working relationship with your insurance provider and becoming stuck in a rut through auto-renewal.
New policy offerings arrive on the marketplace regularly and it might be in your interest to review the market each year, rather than simply drifting into automatic renewals. If you don’t have the time or expertise to do that for yourself, there will be experienced landlord insurance brokers who will be able to do it for you.
Think carefully before more making small claims
Typically the largest single cost saving open to you is when you have built up a substantial history of no claims and then are able to find insurance providers who will value that accordingly through attractive discounts.
Sometimes, putting that no-claims situation at risk by making claims for relatively small sums of money might not make economic sense.
Align your tenant letting categories to the policy
Although this is an occasionally controversial area, at the time of writing some insurance providers are excluding certain categories of tenant from their standard let property insurance cover. That might typically include groups such as students, housing benefit recipients or asylum seekers.
Such policies may offer to include them but only upon payment of additional premium thereby pushing the costs up (other policies may decline to cover such categories at all).
There are policies that provide “any tenant” cover as standard but if you are considering a policy that does not, then you will need to ensure that you do not let to excluded categories of tenants if you wish to keep your insurance costs down.