Paying your landlord insurance monthly is a great way to get your policy started; it can save you paying a large upfront cost when you need cover right away. We’ve put together a guide explaining the best ways you can benefit by paying monthly; we have also included great money saving tips, that work!
We'll answer four top questions, starting with…
The average insurance policies have interest rates from 5%, and more often, higher. The percentage you’re charged will depend on your chosen insurance company and the rates they offer. However, paying monthly seems easier and more affordable, as you can spread the cost of the policy and the interest you’ll be charged, over the year.
You can find an average landlord insurance policy for around £142 from Simple. Paying this over a year would only cost you around £12 per month, and when you look at it like that; it’s very affordable for a really good service.
The reason why insurance companies charge interest rates, is because they look at your agreement and policy as a personal credit agreement of some sort, that’s also why they credit check you. If you started your policy today, and your building is burnt to the ground the next day, your insurance policy will pay out.
Best tip: Pay by direct debit, as you must keep your payments up to date, also check your bank account to make sure they are taking the money every month.
The makings of a good policy includes several different types of cover, lets have a look at what you could include, and why you would need it.
Loss Of Rent Insurance - protects you for up to 12 months
If you are a victim of fire or flooding, it can be a horrible time to go through, especially when you have a mortgage hanging over your head for the property that’s now unoccupied.
A loss of rent policy will cover the mortgage payments for up to 12 months, while repairs are being made.
This insurance will be part of your over all policy, buy to let landlords would mainly use this cover, as most landlords have a mortgage on the property.
Alternative Accommodation Insurance - Cover for your tenants
If your property becomes uninhabitable, what do you do about the tenant living in the property?
When you have loss of rent guarantee protection, the insurance companies will pay for alternative accommodation, while works going ahead in the flat or house.
Landlords Building Insurance for Subsidence, Fire and Flooding
The bricks and mortar of your building can be cover with a standard buildings insurance policy. A policy can be purchased which includes cover from £75,000 up to £2 million, depending on the value of your insured property.
Take what you need and no more, because insurance companies won’t pay more than the re-build cost anyway. Make sure you have a clear re-build cost from a trusted builder and include costing for inflation.
Accidental Damage Cover
Whenever an accident happens, your covered with this little baby. When any tenant breaks or damages your household contents, you can claim the cost, which recovers the value of the items.
Landlord Contents Insurance - from £5,000 right up to £75,000
You can buy a contents insurance policy that pays out up to £75,000 for high value items. You can always add more, but more is not always needed, take out cover that only covers your true contents value, if you forked out £5,500 for furniture and fittings, insure them for £10,000.
Landlord Liability Insurance - up to £2million as standard
Small business owners with one or two properties should only need the minimum liability cover, which will cover your interaction with the public.
We hope you enjoyed and found this article helpful, if you feel we could improve it or add to it, please get in touch with us.
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