Landlord Insurance Policy: Here Is What You Need to Know

Wednesday, February 18, 2015, 6:00 AM | Leave Comment

Buying a house in UK is a great investment because the rate of bank loans is very decent these days. Considering the volatile condition of share market, an investment in real estate properties is much safer; as it can offer you great return on investment in the coming years.

You can rent the entire house or a part of your property and earn significant amount of money every month.

When you purchase a house, it is important to buy a landlord insurance policy as well. It protects your home from any accidental loss or damage.

If you want to know about landlord insurance policies in detail, you can visit UK Landlord for more information.

The price of a landlord insurance policy may vary, depending upon the company you are selecting. However, not everyone is comfortable to pay the entire amount at a time.

If your income is low, then you can pay the landlord insurance amount monthly and enjoy some great advantages.

In this article, you will find some of the common questions regarding landlord insurance policy monthly payment and their answers.

  • Why should I pay monthly and not yearly?

    As mentioned earlier, the insurance policy interest rate depends on the service provider, but it starts from 5%. When you opt for monthly payment, it gives you the freedom to divide the cost of the policy and the interest amount.

    Let’s consider this example- an average landlord insurance policy may cost 142 GBP per year. So, when you pay monthly, it comes down to only 12 GBP (approx) per month. So, even a low income person can easily get insured and protect his property from any damage.

    What about the insurance cover? Will I get everything even though I am not paying the full amount?

    There is no need to worry at all. Insurance companies charge interest rates because they consider the policy as a personal credit agreement.

    In fact, most of the insurance companies check your credit score before offering the landlord policy.

    So, basically, if you pay the first month policy instalment today and your house is destroyed 7 days later due to a storm, the insurance company will pay you the total insured sum.

    While selecting landlord insurance, make sure that the monthly payments are interest free. Pay the instalments using a 0% credit card.

    Another wise thing to do is insure your other real estate properties by the same insurance company. They may provide you good discounts in rates.

  • How to save money on insurance besides paying monthly?

    • You can always pay annually and get discounts.

    • You should secure your property by installing high-tech alarm system. You must prove to the insurance company that your house is completely secure and the chances of theft or accidental loss (fire, snow) are less.

    • If you have multiple houses or apartments, then request for discounts.

  • Which covers do I need in a landlord insurance policy?

    An insurance policy can include a wide range of covers. Here are some of them which you can include in your policy.

    1. Rent insurance loss:
      If your house gets damaged due to fire or flood, then it covers the mortgage payments for maximum 12 months, while the repairing work is completed.

    2. Alternative accommodation insurance:
      What if your property gets damaged and you already have tenants? This type of insurance makes sure that the insurance company will pay for your tenants’ accommodation. So, it basically covers your tenants.

    3. Cover for accidental damage:
      If your tenant damages or breaks any household item, you can ask the insurance company to pay for the loss.

There are many more covers, but these are the most popular ones. As per your requirements, you have to decide how many covers you want to include in your landlord insurance policy.

Author BIO

Mike Stevens is working in for the past 5 years. You can read some of his other articles by visiting our blog.

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