Landlord insurance: What is the most important factor when arranging landlord insurance for your BTL/HMO portfolio?

Price? Product? Insurer? Each of these factors can influence a client’s decision-making process when arranging protection for their assets. However, all too often, people ‘race to the bottom’ and do everything and anything to opt for the cheapest policy.

What often happens, as a result, is that assets are underinsured and in the event of a claim people are left financially exposed.

For example, if you insure your property for £50,000 as opposed to its true value of £100,000, this means that your rental property is 50% underinsured, so you will pay less than you should in terms of the premium. However, if a claim was to arise, an insurer is entitled to only pay 50% of the claim value, meaning you could have thousands of pounds at risk.

If your claim is worth £20,000, the insurer can say that because you were insuring half the value of the property, they will pay half the value of the claim – leaving you to make up £10,000 to settle the claim.

This is just one of many examples as to why chasing the cheapest policy is not always the best course of action. Properly protecting your assets with a good quality product is of the utmost importance.

If you are looking for assistance in regard to landlord’s insurance, contact the team today!