How much does landlord insurance cost?
By |Published On: 22nd May 2023|

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How much does landlord insurance cost?

By |Published On: 22nd May 2023|

At a time when prices for everything only seem to be going up, it’s understandable that how much landlord insurance costs is a key factor for some when choosing cover. However, finding a suitable policy is just as important, as being underinsured can be a very expensive mistake.

What determines how much landlord insurance costs?

The cost of cover can vary depending on your location, the age and construction of the building, and the likely cost of rebuilding it (building declared value). Premiums can also be affected by your tenants, for instance whether you let to students or professionals, your claims record, and what level of excess you are willing to pay.

Landlord insurance vs homeowners’ insurance cost

There is a difference between normal buildings and contents cover and landlords insurance, and if a property is let, you must tell your insurer.

Being covered for risks associated with having tenants in the building can be important. That might include accidental damage cover, malicious damage cover, and loss of rent cover. Specialist landlords insurance policies, such as ours, often include these covers as standard. You might also want to check how much contents cover is included.

How to get a quote for landlord insurance

If you’re searching the internet for suitable insurance, you may find yourself with a range of options. But how do you narrow it down and get a quote? One starting point would be to look at customer reviews. Independent services like Trustpilot can allow you to read through feedback from existing and previous customers.

Even if you’re tempted to go with the top result for landlord insurance on Google it can be worth taking some time to compare the level of cover and the service provided by different insurance companies.

While comparing and buying online can be convenient and quick, you might also be able to pick up the phone and check with the provider if there is anything you’re not sure about. Alternatively, websites such as ours provide a LiveChat service to instantly message our team. As well as helping you find suitable cover, it can also be a good way of checking out the level of customer service provided.

Avoiding underinsurance

As well as obvious factors such as age and location of a building and its claims history, one of the major factors determining insurance premiums is the rebuild cost. Policies typically take into account the cost of reinstating the building after a total loss. This will include additional costs such as architects fees, demolition and clearance of the site, planning and legal fees.

So, if your building declared value (BDV) is out by 25%, for example, then each claim you make may be reduced by 25%. If you have never reviewed the BDV, or haven’t done so for a number of years, it may be worth commissioning a surveyor for a new valuation, perhaps as part of a periodic building check. You could also use an online rebuilding cost calculator, such as the one provided by the Building Cost Information Service (BCIS).

Finding suitable landlord insurance

There are various risks associated with letting a residential home. Keep your investment safe, whether it’s a single property or a portfolio. Our comprehensive Landlord Insurance can help protect you from financial risks, including accidental and malicious damage by tenants and loss of rent if the property becomes uninhabitable due to an insured event.

The sole purpose of this article is to provide guidance on the issues covered. This article is not intended to give legal advice, and, accordingly, it should not be relied upon. It should not be regarded as a comprehensive statement of the law and/or market practice in this area. We make no claims as to the completeness or accuracy of the information contained herein or in the links which were live at the date of publication. You should not act upon (or should refrain from acting upon) information in this publication without first seeking specific legal and/or specialist advice. Arthur J. Gallagher Insurance Brokers Limited trading as Just Landlords accepts no liability for any inaccuracy, omission or mistake in this publication, nor will we be responsible for any loss which may be suffered as a result of any person relying on the information contained herein. FP668-2023

About the Author: Em Morley (she/they)

Em is the Content Marketing Manager for Just Landlords, with over five years of experience writing for insurance and property websites. Together with the knowledge and expertise of the Just Landlords underwriting team, Em aims to provide those in the property industry with helpful resources. When she’s not at her computer researching and writing property and insurance guides, you’ll find her exploring the British countryside, searching for geocaches.

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