Landlord
Insurance - Money Saving Tips Introduction - The buy to let landlord
insurance market is quite small. In no way is it as developed as much as
standard Home Buildings and Contents Insurance. You may find that there
are less than 20 insurance providers on the market providing this type of
insurance cover. Further, not all insurers will cover all types of tenant.
Some insurers will offer discounts ( or not apply loadings) based on the type
of tenant you have in the property. Usually insurers split tenants in to the
following groups:-
The cheapest rates
will go to Landlords who have Professional working tenants in their property.
With regard to DSS1 & DSS 2 tenants, DSS1 tenants normally refer to situations
where the tenancy agreement is still between the landlord and the tenant. DSS2
normally refers to situations where the contract is between the Housing
Association/ Local authority and the tenant.
The discounts available to find cheap landlord insiurance are usually quite
restrictive, it may be possible to obtain cheap landlord insurance uk cover
by requesting a larger excess. (an excess relates to the first portion
of any loss that you are prepared to pay yourself, a typical excess would be
£100.00). Remember though that any voluntary excess is in addition to any
excess already imposed by the insurer.) It is also worth pointing out at
the quotation stage if you have several properties, many insurers will offer
discounts if you have a portfolio of covers to offer.
A number of insurers are now introducing a no claims bonus system which
rewards landlords that have not made any claims. Whilst this is not as high as
a no claims bonus offered under a motor insurance policy , it can be up to as
much as 20% of the annual premium which is a worthwhile discount. As per
all other types of insurance, it pays to shop around for your landlord buy to
let insurance even if this proves to be difficult due to the small number of
insurers in the market.
